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Cenovus reaches deal to sell Pipestone business

Cenovus Energy is selling off its natural gas and liquids business in the Pipestone area. The company says it has reached a deal with one of its subsidiaries to sell its northwestern Alberta oil and gas assets for $625 million. The agreement also includes their 39 per cent working interest in a Wembley gas plant.

President & Chief Executive Officer Alex Pourbaix says the company is trying to market more of their assets in the Deep Basin. It’s to pay down the debt from buying most of ConocoPhillips’ Canadian assets in 2017.

“I’m pleased with this important step towards streamlining and rationalizing our acreage in the Deep Basin. These are high quality assets and we believe the Pipestone transaction will provide compelling value for Cenovus shareholders.”

The sale is expected to close this fall. NuVista Energy has confirmed it is the buyer.

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