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Cenovus to sell Saskatchewan enhanced-oil recovery assets for $940M

Cenovus Energy logo at the company's annual meeting in Calgary, Wednesday, April 25, 2012. THE CANADIAN PRESS/Jeff McIntosh

Cenovus Energy Inc. (TSX:CVE) says it is selling its majority stake in a Saskatchewan enhanced-oil recovery project to Calgary-based Whitecap Resources Inc. (TSX:WCP) for $940 million.

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The deal is the fourth on a list of four asset sales the major oilsands producer vowed to complete to help pay for its $17.7-billion acquisition of most of the Canadian assets of Houston-based ConocoPhillips earlier this year.

It has previously agreed to sell its Palliser assets in southeastern Alberta to Torxen Energy and Schlumberger for $1.3 billion, its Suffield operations in southern Alberta to International Petroleum Corporation for $512 million and its Pelican Lake heavy oil assets in northern Alberta for $975 million to Canadian Natural Resources (TSX:CNQ).

In a statement, incoming Cenovus CEO Alex Pourbaix says the sale will allow the Calgary company to retire the entire $3.6-billion bridge facility associated with the ConocoPhillips purchase before year-end.

Watch below: On March 30, 2017, Dallas Flexhaug reported on Cenovus Energy announcing it will spend $17.7 billion to acquire most of the Canadian assets of ConocoPhillips.

READ MORE: Cenovus names former TransCanada executive Alex Pourbaix new chief executive

Cenovus has said it will identify other assets for sale this year to take the total raised to between $4 billion and $5 billion.

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