Strathcona Resources Ltd. has completed its acquisition of the Vawn thermal project and approximately 43 net sections of undeveloped thermal lands from Cenovus Energy Inc. Originally announced on October 27, 2025, the transaction closed on December 1, 2025, with total consideration of up to $150 million, comprising $75 million in cash paid at closing and contingent payments of up to $75 million tied to Western Canada Select oil prices exceeding C$70 per barrel over 14 quarters.

The Vawn project, formerly owned by Cenovus, currently produces approximately 5,000 barrels per day of heavy oil against nameplate capacity of 10,000 barrels per day. Year-end 2024 proved reserves stood at 25 million barrels with an associated before-tax PV-10 value of $511 million. Strathcona estimates approximately 48 million barrels of remaining recoverable resource, representing 26 years of resource life at current production rates.

The acquired undeveloped lands at Glenbogie, Plover Lake, and Lindbergh are expected to add approximately 35,000 barrels per day of long-term production capacity. Strathcona has consequently raised its 2026 production guidance to 120,000–130,000 barrels per day while maintaining its $1.0 billion capital budget. The company now projects production reaching 200,000 barrels per day by 2031 and up to 300,000 barrels per day by 2035, representing a 10% compound annual growth rate from 2026.

Mizuho Securities USA served as financial advisor and Blake, Cassels & Graydon LLP acted as legal counsel to Strathcona.