An agreement by Cenovus Energy Inc. (NYSE: CVE) to purchase the remaining assets of Oilsands Quest for $10 million received approval from the Alberta Court of Queen’s bench. The majority of the assets are located adjacent to Cenovus’s proposed Telephone Lake oil sands project in northern Alberta.

The acquisition includes three oil sands leases, covering approximately 59,000 hectares in Alberta and Saskatchewan, that adjoin Cenovus’s Telephone Lake property. Late last year, Cenovus submitted a joint regulatory application and environmental impact assessment for an initial 90,000 b/d project at Telephone Lake. Ultimately, the company expects Telephone Lake will become another cornerstone project like Foster Creek or Christina Lake, Cenovus’s two producing oil sands assets.

The acquisition also includes a 34,000 hectare oil shale lease in east-central Saskatchewan, as well as various surface assets, such as a work camp and assorted vehicles and equipment. It does not include any of Oilsands Quest’s corporate assets or shares. The acquisition is expected to close on or about October 12, 2012.

The purchase and sale agreement for the company’s assets was signed with Ernst & Young, the court-appointed monitor overseeing Oilsands Quest’s liquidation.