Cenovus increases second quarter oil sands production by 42%
Operational and financial performance on track
· Production from the Foster Creek and Christina Lake oil sands projects increased 42% in
the second quarter of 2010 compared with the same period in 2009.
· Cenovus’s established conventional oil and gas properties generated about $400 million of
operating cash flow in excess of capital expenditures in the second quarter.
· Second quarter cash flow remained strong and in line with company guidance, despite
weaker realized natural gas prices and lower downstream operating cash flow.
· The Board approved a 10 year business plan detailing how the company expects to
achieve oil sands production of 300,000 barrels per day (bbls/d) by the end of 2019, a five-
fold increase from current production.
· An application was submitted to Alberta Environment and the Energy Resources
Conservation Board (ERCB) for the Narrows Lake oil sands project. The ERCB approved a
Grand Rapids pilot in the Greater Pelican Region.
“Our second quarter has delivered strong operational and financial results,” said Brian Ferguson,
President & Chief Executive Officer of Cenovus. “We are on track to meet guidance targets we’ve
established for production and cash flow for the year. We continue to take steps that are expected
to lead to a doubling of the company’s net asset value within the next five years.
“We have top quality reservoirs, experienced and knowledgeable staff, a track record of being a
low cost operator and a commitment to continuously advance our technologies and reduce our
environmental impact,” Ferguson said. “These elements, combined with reliable cash flow from our
conventional oil and gas assets and a solid dividend, are expected to deliver strong total
shareholder return over the long term.”
Effective Jan. 1, 2010, Cenovus changed its reporting currency