The Suffield assets of Cenovus include properties on Canadian Forces Base Suffield and the nearby Alderson property.
According to IPC, the Suffield and Alderson oil and natural gas assets are located over 800,000 net acres of shallow natural gas rights and 100,000 net acres of oil rights.
The assets are forecast to have an average production of around 6,900 barrels of oil per day (bopd) to go along with about 102 million standard cubic feet of natural gas per day in the current year.
Cenovus will use the net proceeds from the Suffield transaction and also from the sale of its Greater Pelican Lake assets to reduce its $3.6bn asset-sale bridge facility.
Cenovus Energy president & CEO Brian Ferguson said: “We’re right on target with the financial plan we put in place to deleverage our balance sheet following our recent transformational acquisition of assets in Western Canada.
“The successful execution of our planned divestiture program this year will further focus our asset base and should leave us well positioned to drive additional shareholder value from our core assets in the oil sands and Deep Basin.”
IPC is a newly formed international oil and gas exploration and production company headquartered in Vancouver and is part of the Sweden-based Lundin Group. The acquisition of the Suffield oil and gas assets is expected to increase its production and reserves by more than three times.
IPC CEO Mike Nicholson said: “The Suffield and Alderson assets have been operated safely and efficiently by Cenovus and we are pleased to have reached this agreement to acquire these conventional producing assets as Cenovus focuses on its oil sands and Deep Basin assets.
“This acquisition fits perfectly with IPC’s strategy of leveraging our existing producing asset base as a platform for value accretive acquisitions of long-life, low-decline producing assets in stable jurisdictions with upside development potential.”
Subject to closing conditions, the transaction is anticipated to be completed in the fourth quarter.
