Canadian Natural Resources Ltd. is to buy assets in northern Alberta for gross cash consideration of $975 million (Can.) from Cenovus Energy Inc.
The package has 19,600 boe/d of production including heavy oil from Pelican Lake operations and some natural gas production from other assets in northern Alberta.
CNRL said the purchase provides an additional 38% interest in the Pelican Lake sales pipeline, which would bring CNRL’s overall ownership to 100%. The acquisition also includes a net profits interest in the Primrose East operations area and “undeveloped land.”
The transaction is targeted to close on or before Sept. 30.
Cenovus said proceeds from the sale will help fund the company’s acquisition of assets from ConocoPhillips earlier this year (OGJ Online, Mar. 30, 2017).