Whitecap Resources acquires Weyburn unit from Cenovus for Cdn$940 million
Cenovus announced the sale of its 62% working interest in the Weyburn Enhanced Oil Recovery (EOR) project along with a small non-operated interest in Cardinal Energy's Midale position. The buyer was Whitecap Resources, which is a natural fit for these assets. Current production (net to Whitecap) is 11,500 bbl/d, with ample development upside. Cenovus has raised Cdn$3.7 billion this year from the sale of legacy assets. Proceeds will be used to retire the Cdn$3.6 billion bridge loan needed earlier this year to complete the US$13.3 billion acquisition of Deep Basin and oil sands assets from ConocoPhillips. Cenovus has a Cdn$4-5 billion divestiture target. Although the company has no more legacy disposals planned for this year, it has begun to market selected Deep Basin assets that were acquired as part of the ConocoPhillips deal.