Cenovus Energy Inc., an integrated oil company, engages in developing, producing, and marketing crude oil, natural gas liquids (NGLs), and natural gas in Canada with refining operations in the United States. The company’s reserves and production are located in Canada, primarily within the provinces of Alberta and Saskatchewan. As of December 31, 2014, the company had a land base of approximately 6.7 million net acres. Segments The company’s segments include Oil Sands, Conventional, and Refining and Marketing. Oil Sands segment This segment includes the development and production of the company’s bitumen assets at Foster Creek, Christina Lake, and Narrows Lake, as well as projects in the early stages of development, such as Grand Rapids and Telephone Lake. The Athabasca natural gas assets also form part of this segment. Certain of the company’s operated oil sands properties, including Foster Creek, Christina Lake, and Narrows Lake, are jointly owned with ConocoPhillips, an unrelated U.S. public company. Cenovus FCCL Ltd., the company’s wholly owned subsidiary, is the operator and managing partner of FCCL Partnership (FCCL), and owns 50 percent of FCCL. FCCL has a management committee, which includes the company’s three representatives and three ConocoPhillips representatives, with each company holding equal voting rights. As of December 31, 2014, the company held bitumen rights of approximately 1.5 million gross acres (1.1 million net acres) within the Athabasca and Cold Lake areas, as well as the rights to lease an additional 478,000 net acres on its behalf and/or its assignee’s behalf on the Cold Lake Air Weapons Range. Foster Creek The company has a 50 percent working interest in Foster Creek, its first commercial SAGD operation. It is located on the Cold Lake Air Weapons Range, an active military base; and has a reservoir depth up to 500 meters below the surface. Foster Creek produces from the McMurray formation using steam assisted gravity drainage (SAGD) technology. The company holds surface access rights from the Governments of Canada and Alberta, and bitumen rights from the Government of Alberta for exploration, development, and transportation from areas within the Cold Lake Air Weapons Range. In addition, the company holds rights to lease various acres of bitumen rights in other areas on the Cold Lake Air Weapons Range on the company’s behalf and/or its assignee’s behalf. In 2014, 22 wells using the company’s Wedge Well technology were drilled at Foster Creek. As of December 31, 2014, there were 89 gross producing wells of this type. The company operates an 80 megawatt natural gas-fired cogeneration facility in conjunction with the SAGD operation at Foster Creek. The steam and power generated by the facility is being used within the SAGD operation and any excess power generated is being sold into the Alberta Power Pool. Christina Lake The company has a 50 percent working interest in Christina Lake. Christina Lake is located approximately 120 kilometers south of Fort McMurray and has a reservoir depth up to 350 meters below the surface. Christina Lake uses SAGD technology and produces from the McMurray formation. In 2014, the company drilled 24 gross wells at Christina Lake using the company’s Wedge Well technology. As of December 31, 2014, there were 19 gross wells of this type producing. Narrows Lake The company has a 50 percent working interest in Narrows Lake. Narrows Lake is located adjacent to Christina Lake and has a reservoir depth up to 375 meters below the surface. Narrows Lake would be the company’s first commercial application of SAP in conjunction with SAGD. Telephone Lake The company’s 100 percent-owned Telephone Lake property is located in the Borealis Region in northeastern Alberta, approximately 90 kilometers northeast of Fort McMurray. Grand Rapids The company’s 100 percent owned Grand Rapids property is located in the Greater Pelican Region, approximately 300 kilometers north of Edmonton, Alberta. The project is adjacent to the company’s Pelican Lake heavy oil operations and existing facilities. Other Emerging Assets The company has v
cenovus energy inc
(CVE:Toronto Stock Exchange)
500 Centre Street S.E.
P.O. Box 766
Calgary, AB T2P 0M5
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