Cenovus Completes Transaction to Purchase Rail Terminal


Facility ownership strengthens market access



CALGARY - 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.



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.



SOURCE Cenovus Energy Inc.



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