NuVista to acquire Pipestone assets for $625 million (Can.)

Aug. 10, 2018
NuVista Energy Ltd. has entered into an agreement with Cenovus Energy Inc., both of Calgary, to acquire Cenovus Pipestone Partnership, which holds the Pipestone and Wembley natural gas and liquids business in northwestern Alberta, for $625 million (Can.).

NuVista Energy Ltd. has entered into an agreement with Cenovus Energy Inc., both of Calgary, to acquire Cenovus Pipestone Partnership, which holds the Pipestone and Wembley natural gas and liquids business in northwestern Alberta, for $625 million (Can.).

The assets are mainly in the core of the condensate-rich Alberta Triassic Montney fairway and on 35,250 net acres of land, the majority of which is a single contiguous block with four layers of well-delineated development potential.

The transaction also includes the Pipestone business’ 39% operated working interest in the Wembley gas plant.

The assets represent a 29% increase to NuVista’s current Montney land position. The acquisition includes current production of 9,600 boe/d (83% Montney) with a low decline rate estimated to be 22% as well as associated infrastructure. The acquisition also holds 157 million boe (gross) proved plus probable reserves.

The sale is expected to close in the third quarter, subject to customary closing conditions.