Cenovus Energy to Shed Pelican Lake Assets
Canada's Cenovus Energy Inc said on Tuesday it would sell its Pelican Lake heavy oil operations in Alberta for C$975 million ($786.92 million) and the oil company is also considering sale of other assets to reduce debt.
Cenovus said the proceeds from the sale would be used to fund the acquisition of ConocoPhillips (COP)' assets, which it purchased for $13.3 billion in March.
Reuters reported in August that Canadian Natural Resources Ltd was among potential bidders for the Pelican Lake assets and was in advanced talks to buy them earlier this month.
Cenovus also said on Tuesday it was close to selling its Suffield oil and natural gas assets in Alberta, which could fetch between C$500 million and C$600 million.
CIBC Capital Markets and Barclays Capital Canada Inc were Cenovus's financial advisers.
Reporting by Ahmed Farhatha
