Canada's Cenovus Energy said Tuesday it has reached agreements to sell its Wembley assets in its Conventional business segment and its Husky retail fuels network for combined total cash proceeds of approximately C$658 million (US$515.1 million).

Cenovus is selling its primarily Montney assets in Wembley in north-west Alberta for cash proceeds of approximately C$238 million to an undisclosed buyer.

Total production from the assets averaged approximately 3200 barrels of oil equivalent per day in 2021, with about 38% oil and natural gas liquids. This transaction, which is still subject to certain approvals and conditions, is expected to close in December 2021, the company said.

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The company also has reached an agreement to sell 337 gas stations in its Husky retail fuels network to fellow Canadian companies Parkland and Federated Co-operatives for total cash proceeds of C$420 million.

Cenovus said it is retaining its commercial fuels business, which includes approximately 170 cardlock, bulk plant and travel centre locations. The transaction is expected to close in mid-2022.

“This is another demonstration of Cenovus delivering on opportunities to continue to optimise our portfolio and unlock value from assets that will not attract significant investment in our business,” said Alex Pourbaix, Cenovus’s president and chief executive.

“With these latest transactions, we now expect to realise more than C$1.1 billion of total proceeds from sales announced in 2021," he added.

The company recently announced it had achieved its interim net debt target of C$10 billion, the doubling of its quarterly dividend as of the fourth quarter of 2021 and the establishment of a normal course issuer bid programme for the repurchase of up to 146.5 million of the company’s common shares.

"Proceeds from these latest transactions will advance net debt repayment towards the company’s longer-term target of C$8 billion and enhance the company’s capacity to increase shareholder returns," the company said in a release.