Cenovus Energy Inc (CVE)

[OilStockReport]

CVE is predicted to have continued upside. Thoughts?

Cenovus Energy Inc. (CVE) is a western Canada focused company. It had 2010 proved and probable reserves of 2.4 BBoe. Cenovus has lease rights to 1.4 MM net acres. It has refining capacity of 226 Mbbls/d. Cenovus is increasing oil production. In 2010, it produced approximately 60% oil and liquids. In 2014, oil and liquids production will be 80%.
Foster Creek will produce 51 to 54 Mbbls/d in 2011. It will have between $11.10 and $11.85 operating costs per barrel. Cenovus will drill between 110 and 120 wells. Christina Lake will produce 9 to 11 Mbbls/d in 2011. 50 to 60 wells are planned and operating costs are $18.65 to $19.40 per barrel. Pelican Lake will produce between 21 and 23 Mbbls/d in 2011. Operating costs are between $14 and $15 per barrel. 40 to 45 gross wells will be drilled this year. Cenovus maintains these properties will add significant oil production growth in the near term. Over the long term, Cenovus has additional properties to increase oil production:

Narrow's Lake 65000 net bbls/d
Grand Rapids 180000 net bbls/d
Telephone Lake 35000 net bbls/d
Winefred Lake 30000 net bbls/d
Foster Creek (Other) 30000 net bbls/d
East McMurray 30000 net bbls/d
West Kirby 30000 net bbls/d
Steepbank 30000 net bbls/d
Cenovus also has refining capacity. It has 356 Mbbls/d crude throughput at Wood River. Borger provides 146 Mbbls/d crude throughput. Cenovus is increasing throughput capacity at Wood River. The combination of increased crude production and refining capabilities provide upside.