Cenovus gets approval for Oilsands Quest purchase

Cenovus Energy Inc. said Tuesday that it has received Canadian court approval for its plans to buy the remaining assets of oil sand exploration business Oilsands Quest for $10 million.

The deal includes three oil sands leases in Alberta and Saskatchewan. The majority of the assets are located near one of the company's proposed projects in northern Alberta. It also includes an oil shale lease and related equipment in Saskatchewan.

Cenovus was able to acquire the assets through the liquidation of OIlsands Quest.

The Alberta Court of Queen's Bench has approved the deal, as has Ernst & Young, the court-appointed monitor for the liquidation.

John Brannan, Cenovus executive vice president and chief operating officer, said the company is happy to acquire the assets at such a good price and said it is a good bolt-on acquisition, which has potential to strengthen the company's next big emerging oil sands projects.

Cenovus said the deal is expected to close around Oct. 12.

Shares of the Canadian company rose 63 cents to close at $35.79.