According to a Globe and Mail article, Torxen Resources Ltd, led by former Cenovus Energy Inc Chief Operating Officer John Brannan, is leading a bid to acquire a major Alberta natural gas property from his former employer. The Globe reported that the deal that could be worth up to C$600 million.
Torxen is said to be the front-runner to acquire the Suffield property according to the Globe article.
The transaction would be the second for Cenovus as part of a slate of assets sales that could generate up to $5-billion, with proceeds earmarked for debt reduction following the company’s takeover of ConocoPhillips Co.’s oil sands and Albertan deep-basin natural gas assets.
Suffield, in southeastern Alberta, is known for shallow gas production as well as some oil output. The initial base of operations for Alberta Energy Co., a forerunner to Cenovus, Suffield comprises about 400,000 hectares producing more than 26,000 barrels of oil equivalent a day.
It is among four major properties Cenovus has tried to sell, and has served notice that more may go up for sale. Early this month, it sold its Pelican Lake heavy oil holdings to Canadian Natural Resources Ltd. for $975-million. Two other sales, the Weyburn oil project in Saskatchewan and Palliser natural gas venture in southern Alberta, are slated to take place by year-end.