Cenovus Energy Inc. has received approval from the Alberta Energy Regulator (AER) and the province of Alberta for its 100%-owned Telephone Lake thermal oil sands project. The proposed project is located approximately 90 kilometres northeast of Fort McMurray, within the company's Borealis Region of northern Alberta.

The approval is for a steam-assisted gravity drainage (SAGD) project with initial production capacity of 90,000 barrels per day (bbls/d), which is anticipated to be developed in two 45,000 bbls/d phases. Telephone Lake is expected to eventually have total production capacity in excess of 300,000 bbls/d, with a project life of more than 40 years. Cenovus filed its Telephone Lake regulatory application and Environmental Impact Assessment in the fourth quarter of 2011.

"We're pleased to have received regulatory approval for Telephone Lake as it has the potential to be another cornerstone asset within our portfolio," said Brian Ferguson, Cenovus President & Chief Executive Officer. "We're excited about the opportunity that this high quality asset provides for us to create future value."

Tags: Cenovus Energy Inc.