Ovintiv grows footprint in Canada’s Montney shale

Canada

DENVER, November 15, 2024 – Denver-based oil and gas company Ovintiv has agreed to acquire approximately 109,000 net acres in the Alberta Montney from Paramount Resources in an all-cash transaction valued at around USD 2.38 billion, Ovintiv announced on Thursday.

The acquisition will bring Ovintiv’s core land position in Canada’s Montney shale play to approximately 369,000 net acres. With the deal, the company will add around 900 total net well locations and 70,000 boepd of production to its portfolio, and gain expanded access to existing midstream and downstream infrastructure.

“This acquisition is the targeted result of our technical and commercial analysis of the basin to identify the highest-value undeveloped oil resource. The acquired assets have demonstrated leading well performance and are a natural fit with our existing acreage. They come with ample midstream capacity, unlocking optionality for growth in our Montney oil and condensate volumes,” said Brendan McCracken, president and CEO of Ovintiv.

Concurrently, Ovintiv announced it had entered into a definitive agreement to sell “substantially all” of its Uinta Basin assets in Utah to Denver-based E&P company FourPoint Resources for a total cash consideration of around USD 2 billion.

Photo courtesy of Ovintiv