Wednesday, October 03, 2012

Cenovus buys Oilsands Quest assets

Map showing Oilsands Quest's assets.
Picture ruthlessly taken from their website.
The story of Oilsands Quest is a sad one. The plan was simple - extract a bunch of oil from a huge oil sands deposit along the Alberta-Saskatchewan border. Unfortunately there was no cap rock to contain steam, so SAGD was out, and they couldn't find any workable alternative. Fast-forward a few years and here we are: Oilsands Quest's assets have been liquidated, and what's left of them are being scooped up by Cenovus for $10 million.

Some of the properties are apparently very close to Cenovus's Telephone Lake property. Last time I heard, Cenovus was still looking for a partner to help develop that one and didn't have much in the way of interest. I wonder if Telephone Lake also has caprock issues dampening industry opinions on it?

1 comment:

  1. They gave up on finding a partner and are going it alone. It does have a cap rock, but it also comes with a crap load of top water.