Cenovus to sell Marten Hills oil assets to Headwater Exploration

Headwater Exploration

09/11/2020 13:05

Nov 9 (Reuters) - Canadian oil and gas producer Cenovus
Energy Inc  CVE.TO  said on Monday it will sell its Marten Hills
oil assets in northern Alberta to Headwater Exploration Inc
 HWX.TO  for C$100 million  ($77.16 million).
    The deal comes days after Cenovus agreed to buy rival Husky
Energy  HSE.TO  to create Canada's No. 3 oil and gas producer,
as a pandemic-driven collapse in demand forces the industry to
cut costs and seek consolidation to weather the downturn.
 urn:newsml:reuters.com:*:nL1N2HG099
    Total consideration paid to Cenovus includes C$35 million in
cash, 50 million common shares of Headwater and 15 million share
purchase warrants.  urn:newsml:reuters.com:*:nGNX8dTybK 
    Cenovus will own about 26% of Headwater shares, upon closing
of the deal, which is expected to happen around Dec. 22.
    


($1 = 1.2960 Canadian dollars)

 (Reporting by Lasya Priya M in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((LasyaPriya.M@thomsonreuters.com;))