The US shale producer Ovintiv has entered into a definitive purchase agreement to acquire certain Montney assets in Alberta (Canada) from Paramount in an all-cash transaction of around US$2.4bn. The acquisition will add around 900 total net well locations, located near Ovintiv's current operations and near access to midstream infrastructure with available capacity. The assets will add 70 mboe/d of production (approximately 25 mbl/d of oil and condensate), in the core of the oil-rich Alberta Montney. As part of the Montney transaction, ownership of Ovintiv’s Horn River asset, located in British Columbia, will be transferred to Paramount and ownership of Paramount’s Zama asset, located in Alberta, will be transferred to Ovintiv.
In a separate transaction, Ovintiv has entered into a definitive agreement to sell substantially all its Uinta Basin assets located in Utah, to FourPoint Resources, for a total cash consideration of US$2bn. The proceeds from the sale will partly finance the acquisition of Paramount's Montney assets. These transactions are expected to streamline Ovintiv’s portfolio, focusing on anchor positions in the Montney and Permian.