10/02/2012 03:06 EDT | Updated 12/02/2012 05:12 EST

Cenovus Energy buys remaining Oilsands Quest assets for $10 million

CALGARY - Cenovus Energy Inc. (TSX:CVE) said Tuesday a deal to buy the remaining assets of Oilsands Quest for $10 million has been approved by the Alberta Court of Queen's Bench.

Oilsands Quest, which has been operating under the Companies' Creditors Arrangement Act, has been selling off its assets over the last year.

The deal includes three oilsands leases, covering approximately 59,000 hectares in Alberta and Saskatchewan that are adjacent to Cenovus's Telephone Lake oilsands project in northern Alberta.

The acquisition also includes a 34,000 hectare oil shale lease in east-central Saskatchewan.

Cenovus has filed a joint regulatory application and environmental impact assessment for a 90,000-barrel-per-day project at Telephone Lake.

Oilsands Quest filed for court protection from creditors in November 2011 after a deal to sell its Wallace Creek property fell through.

The company had been hindered by market and financial challenges in the months leading up the filing.