(Updates with deal details)
Oct 19 (Reuters) - Canadian oil and gas producer Cenovus Energy CVE.TO CVE.N said on Thursday it will sell its Palliser crude oil and natural gas assets in southeastern Alberta to Torxen Energy and Schlumberger Ltd SLB.N for C$1.3 billion ($1.04 billion) to lower its debt load.
The company has been looking to sell parts of its portfolio to pay off the debt it accumulated to partly fund its C$16.8 billion purchase of some ConocoPhillips (NYSE:COP) COP.N assets in May. deal doubled Cenovus' production assets, but dented its balance sheet, sent the company's shares tumbling, prompted some investors to revolt and led to the resignation of Chief Executive Brian Ferguson.
Ferguson is set to leave this month. Calgary, Alberta-based continues to target between C$4 billion and C$5 billion in asset sale agreements by the end of the year, Ferguson said on Thursday. month, Cenovus sold off its Pelican Lake heavy oil operations in Alberta for C$975 million to Canadian Natural Resources Ltd CNQ.TO and followed that up with a C$512 million deal to sell its Suffield oil and gas assets to International Petroleum Corp IPCO.TO . ($1 = C$1.2467)