Facility ownership strengthens market
access
CALGARY, Aug. 31, 2015 /PRNewswire/ - Cenovus Energy
Inc. (TSX: CVE) (NYSE: CVE) has closed its previously announced
purchase of Canexus Corporation's North American Terminal
Operations (NATO), a crude-by-rail trans-loading facility in
central Alberta. The acquisition
is part of Cenovus's strategy to build a strong portfolio of
transportation options to help maximize market access and capture
global prices for its oil.
The company is also pleased to announce it has contracted Savage
to work with Cenovus's on-site management team in the day-to-day
operations of the renamed Bruderheim Energy Terminal. Savage is a
leading provider of rail transportation and terminal operations in
the U.S. and Canada.
Located approximately 50 kilometres northeast of Edmonton in Bruderheim, Alberta, the terminal has
strategic value for Cenovus due to its connections to the
Cold Lake and Access crude oil
pipeline systems as well as its links to the Canadian Pacific and
Canadian National rail lines. Cenovus, which began moving its oil
through the facility in 2014, currently transports crude oil
production volumes from its Foster
Creek steam-assisted gravity drainage (SAGD) operation to
Bruderheim on the Cold Lake pipeline. There is potential to
expand the acquired facility at a relatively low capital cost.
Additionally, there is undeveloped land included in the transaction
that provides significant potential as Cenovus evaluates a number
of possible value-added projects.
ADVISORY
FORWARD-LOOKING INFORMATION
This document contains certain forward-looking statements and other
information (collectively "forward-looking information") about
Cenovus's current expectations, estimates and projections, made in
light of the company's experience and perception of historical
trends. Forward-looking information in this document is identified
by words such as "expect", "potential", "possible", "strategy" or
similar expressions and includes suggestions of future outcomes,
including statements about Cenovus's strategy, including the role
of the acquisition and rail transportation in such strategy; the
potential impact of the acquisition; potential for terminal
expansion; Cenovus's plans and expectations regarding operation and
management of the facility; and possible projects in relation to
undeveloped land included in the transaction. Readers are cautioned
not to place undue reliance on forward-looking information as the
company's actual results may differ materially from those expressed
or implied.
Developing forward-looking information involves reliance on a
number of assumptions and consideration of certain risks and
uncertainties, some of which are specific to Cenovus and others
that apply to the industry generally. The factors or assumptions on
which the forward-looking information is based include: assumptions
disclosed in Cenovus's current guidance, available at cenovus.com;
and other risks and uncertainties described from time to time in
the filings Cenovus makes with securities regulatory
authorities.
The risk factors and uncertainties that could cause Cenovus's
actual results to differ materially include: the risk factors and
uncertainties identified in Cenovus's Second Quarter Report, which
remain accurate as of the date of this release. For a full
discussion of Cenovus's material risk factors, see "Risk Factors"
in Cenovus's most recent Annual Information Form/Form 40-F, "Risk
Management" in Cenovus's current and annual Management's Discussion
and Analysis (MD&A) and risk factors described in other
documents Cenovus files from time to time with securities
regulatory authorities, all of which are available on SEDAR at
sedar.com and EDGAR at sec.gov.
Cenovus Energy Inc.
Cenovus Energy Inc. is a Canadian integrated oil company. It is
committed to applying fresh, progressive thinking to safely and
responsibly unlock energy resources the world needs. Operations
include oil sands projects in northern Alberta which use specialized methods to drill
and pump the oil to the surface and established natural gas and oil
production in Alberta and
Saskatchewan. The company also has
50% ownership in two U.S. refineries. Cenovus shares trade under
the symbol CVE and are listed on the Toronto and New
York stock exchanges. The company's enterprise value is
approximately $20 billion. For more
information, visit cenovus.com.
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SOURCE Cenovus Energy Inc.
