The Calgary-based oil company, Cenovus Energy, has announced it is parting with its northern Alberta oil and gas assets in a bid to decrease its $9.5bn debt, Financial Post reports.
It was confirmed in a press release last night (9 August) that NuVista Energy is set to purchase the company.
The agreement is set to cost $625mn and includes its Pipestone and Wembley natural gas and liquids production, as well as the firm’s 39% interest in Wembley’s gas processing facility.
Cenovus has confirmed it will continue to promote its other ventures in order to clear the debt of its acquisition of oilsands and conventional assets from ConocoPhillips in 2017.
Following the purchase, the firm sold a number of its holdings after the $17.7bn takeover of oil sands and natural gas properties.
NuVista revealed that it will fund the acquisition through utilising its credit facilities, a $384mn offering of subscription receipts followed by a private placement of up to $35mn in common shares which are said to be issued on a “flow-through” basis.
The firm continues that the purchase will include production of approximately 9,600 barrels of oil equivalent a day and similar infrastructure.