Cenovus Energy Inc. (“Cenovus” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of the Company’s light oil properties located in the Puskwa and Simonette areas of Alberta, as well as its oil sands properties located in the Panny, Godin, Peace River, Portage/Duncan and Craigend areas of Alberta (the “Properties”).
Light Oil Properties
At Puskwa, Cenovus holds a 100% working interest in 25,728 ha of mainly contiguous land offsetting recent Montney drilling activity in the Sturgeon Lake area. The Company believes that significant volumes of oil can be produced from a Montney capillary trap (solution gas drive) reservoir. The concept has been proven by Cenovus’s seven wells (six horizontal, one vertical), of which four wells are tied in and producing approximately 100 boe/d (two-thirds oil) through the Company’s 12 km of 6” pipeline. The Company believes that with optimized modern-style fracs, compared to those used in its early Montney completions, significantly higher production rates could be achieved.
At Simonette, Cenovus holds a 100% working interest in 4,907 ha of mainly contiguous land offsetting recent Montney and Duvernay drilling activity in the Kaybob, Ante Creek and Kakwa areas. The land is located west of the Ante Creek North Montney Pools which ARC Resources Ltd. has been extensively developing with horizontal wells.
Offsetting the southeastern edge of the Company’s land, a Duvernay oil well that was brought on in August 2014 has produced a total of over 114,000 barrels of oil and 174 MMcf of natural gas.
Oil Sands Properties
At Panny, Cenovus holds a 100% working interest in two oil sands leases with a total of 4,480 ha of land. The Company holds the oil sands rights from the top of the Viking Formation to the base of the Woodbend Group. The primary objective at Panny is the Bluesky Formation.
At Godin, Cenovus holds a 100% working interest in three oil sands leases with a total of 20,480 ha of oil sands rights. The Company holds the oil sands rights from the top of the Viking Formation to the base of the Woodbend Group. The primary objectives at Godin are the Wabiskaw Formation and the McMurray Formation.
In the Peace River area, Cenovus holds a 100% working interest in two oil sands leases with a total of 6,656 ha of land. The Company holds the oil sands rights from the top of the Peace River Formation to the base of the Pekisko Formation. The primary objective at Peace River is the Bluesky Formation.
At Portage/Duncan, Cenovus holds a 100% working interest in eight oil sands leases with a total of 13,312 ha of land. The Company holds the oil sands rights from the top of the Viking Formation to the base of the Woodbend Group. The primary objective at Portage/Duncan is the Grand Rapids Formation. Offsetting the Company’s oil sands lands is BlackPearl Resources Inc.’s Lower Grand Rapids Blackrod SAGD project, which BlackPearl previously stated has potential production capability of 80,000 boe/d. Secondary potential exists in the McMurray Formation.
At Craigend, Cenovus holds a 100% working interest in the oil sands rights from the top of the Viking Formation to base of the Woodbend Group in 12,608 ha of land. The property has extensive road and pipeline infrastructure with year-round access. The Company believes the Grand Rapids Formation to be a low-risk oil exploration prospect at Craigend, with secondary potential in the Clearwater, Wabiskaw, and McMurray formations.
Summary information relating to this divestiture is attached to this correspondence. More specific information is available at www.sayeradvisors.com. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).
Cash offers to acquire the Properties will be accepted until 12:00 pm on Thursday, March 8, 2018.
Click here to view more information
For further information please feel free to contact: Tom Pavic, Ben Rye, Mark Zalucky, Grazina Palmer, Ryan Ferguson Young or myself at 403.266.6133.
Alan Tambosso
Alan W. Tambosso, P.Eng. P.Geol.
President
SAYER ENERGY ADVISORS
1620, 540 – 5th Avenue SW
Calgary, Alberta T2P 0M2
P: 403.266.6133 C: 403.650.8061 F: 403.266.4467
www.sayeradvisors.com