The Successful Investor Hotline – Friday, October 5, 2012

Article Excerpt

CENOVUS ENERGY INC., $34.42, Toronto symbol CVE, has agreed to buy oil sands properties in northern Alberta and Saskatchewan held by Oilsands Quest, which went bankrupt in November 2011. Cenovus will pay $10 million when the sale closes next week. This is a small purchase for the company, which reported cash flow of $925 million, or $1.22 a share, in the three months ended June 30, 2012. Most of these new properties are next to to Cenovus’s 100%-owned Telephone Lake oil sands project. If regulators approve, the company could begin developing Telephone Lake in 2014. When the project is finished, it could produce 90,000 barrels of oil a day. That’s equal to 58% of Cenovus’s average second quarter oil production of 155,566 barrels a day. Telephone Lake’s reserves should last 40 years. Cenovus is a buy. Cenovus was recently covered in The Successful Investor Hotline for September 7, 2012. Click here to access it. Cenovus was recently covered in the September 2012 issue of The Successful…