Cenovus reaches agreement to sell interest in Weyburn asset for US$940 million

Cenovus Energy Inc has entered into an agreement to sell its majority interest in the Weyburn carbon-dioxide enhanced oil recovery operation in Saskatchewan for cash proceeds of US$940 million.

The sale is expected to close in the fourth quarter of 2017, subject to customary closing conditions.

The previously announced sale of Cenovus’s Pelican Lake assets closed on the 29^th September and the company still anticipates the previously announced sales of its Palliser and Suffield assets to close later this year.

The company is focused on using cash flow from its operations and asset sale proceeds to achieve its target of being below two times net debt to adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA).