Torxen Energy (“Torxen”), a private Canadian E&P company, and Schlumberger have entered into a definitive agreement for the purchase of the Palliser Block located in Alberta, Canada, from Cenovus Energy (“Cenovus”), an integrated Canadian oil company, for cash consideration of approximately $1 billion (CAD 1.30 billion).

The Palliser Block consists of oil and gas wells, surface facilities, a pipeline network, and approximately 800,000 acres of oil and gas development rights. The asset has current production of approximately 54,000 BOE/d. The Palliser Block borders the acreage awarded to the Schlumberger Production Management (SPM) and Torxen joint venture established earlier this year.

Under the agreement, which is subject to customary closing conditions, Schlumberger will be the majority non-operating owner, with the rights to exclusive service provision and Torxen will be the operator. The oil-focused development strategy includes a multiyear drilling program of more than 1,600 oil wells starting in 2018.

Patrick Schorn, Executive Vice President New Ventures, Schlumberger, commented, “Schlumberger is very pleased to partner with Torxen in the Palliser Block. By leveraging our reservoir knowledge, oilfield services technology and project management expertise, we expect to lower development costs and maximize the value of this asset—in a market where our traditional business model is challenged to deliver the required financial returns.”

About Schlumberger

Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Working in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance.

Schlumberger Limited has principal offices in Paris, Houston, London and The Hague, and reported revenues of $27.81 billion in 2016.

About Cenovus Energy Inc.

Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is a Canadian integrated oil company. It is committed to applying fresh, progressive thinking to safely and responsibly unlock energy resources the world needs. Operations include oil sands projects in northern Alberta, which use specialized methods to drill and pump the oil to the surface, and established natural gas and oil production in Alberta, British Columbia and Saskatchewan. The company also has 50% ownership in two U.S. refineries. Cenovus shares trade Page 4 under the symbol CVE, and are listed on the Toronto and New York stock exchanges.