Cenovus Energy To Sell Pelican Lake Heavy Oil Operations In $975 Mln Deal

(RTTNews) - Cenovus Energy Inc. (CVE.TO, CVE) announced it has entered into a definitive agreement to sell its Pelican Lake heavy oil operations, as well as other miscellaneous assets in northern Alberta for gross cash proceeds of $975 million.

The company said its proceeds from the sale will be applied against the $3.6 billion asset-sale bridge facility put in place to help fund Cenovus's acquisition of assets from ConocoPhillips earlier in the current year. With the close of the asset sale, the company intends to retire the first tranche of the bridge facility. The remaining two tranches mature in November 2018 and May 2019.