Oil and gas producer Cenovus Energy Inc said on Monday it will sell its Marten Hills oil assets in northern Alberta to Headwater Exploration Inc for $100 million.
The deal comes days after Cenovus agreed to buy rival Husky Energy 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.
Total consideration paid to Cenovus includes $35 million in cash, 50 million common shares of Headwater and 15 million share purchase warrants.
Cenovus will own about 26 per cent of Headwater shares, upon closing of the deal, which is expected to happen around Dec. 22.
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