Headwater Exploration Inc. announced it has entered into a definitive agreement with Cenovus Energy Inc. for a transformational transaction (the "Transaction") to acquire 100% of Cenovus' assets in the Marten Hills area of Alberta for approximately $100 million. Pursuant to the Transaction, Headwater will acquire a 100% working interest in approximately 2,800 barrels per day of medium oil production and 270 net sections of Clearwater rights. On closing of the Transaction Cenovus and Headwater have agreed that Cenovus' initial nominees to Headwater's Board of Directors will be Kam Sandhar, Cenovus' Senior Vice-President, Conventional, and Sarah Walters, Cenovus' Senior Vice-President, Corporate Services.