ALBERTA OIL OPPORTUNITY

Cenovus Energy Inc. (“Cenovus”) has retained CIBC Capital Markets (“CIBC”) and Barclays Capital Canada Inc. (“Barclays”) as financial advisors in connection with the offering of selected assets in the Pelican Lake area of Alberta.

Opportunity Highlights:

  • ~20,100 bbl/d 100% working interest oil asset with <10% annual decline due to waterflood/polymer flood application
    • Targeted formations include the Wabiskaw and Grand Rapids
  • Wabiskaw
    • Forecast peak production potential of >36,000 bbl/d
    • Operating margin of ~$25/bbl at US$55/bbl WTI enabled by low operating costs of <$12/bbl
    • Significant growth capability through infill and step-out drilling, additional polymer flooding and application of thermal technologies
      • >650 high-graded drilling opportunities currently identified
    • 100% owned and operated field gathering and processing facilities with existing surface and transportation infrastructure allows for forecasted peak production without incremental infrastructure build-out
  • Grand Rapids
    • De-risked SAGD opportunity with pilot operations from 2010-2016
    • Regulatory approvals received for a 180,000 bbl/d development project
    • Substantial development synergies with Wabiskaw development
      • 10,000 bbl/d SAGD facility purchased and ready for installation once project is initiated
    • Additional SAGD oil opportunity in the Grosmont

Map

Confidential information and details of the offering process will be made available to qualified parties upon execution of a Confidentiality Agreement (“CA”). Please refer to the first three pages of the CA for instructions on submitting an executed copy. Interested parties are not to contact Cenovus directly. All communications, inquiries and requests for information relating to the offering process should be directed to one of the CIBC or Barclays individuals listed below.

Key Contacts:


Land Plat


Land Plat

Michael Freeborn
Managing Director
Head of Energy Investment Banking
(403) 221-4138
michael.freeborn@cibc.com


Tim Kitchen
Managing Director
Head of Canadian Investment Banking
(403) 513-4055
tim.kitchen@barclays.com


Bryan R. Berg
Managing Director
Energy Investment Banking
(403) 216-6621
bryan.berg@cibc.com


Daniel J. Blitt
Director
Global Natural Resources
(403) 513-4056
daniel.blitt@barlcays.com