Denver-based Ovintiv – with core assets in Permian Basin in Texas, Anadarko in Oklahoma and Montney in Canada – said Feb. 24 in Permian it averaged 118,000 boed in 2021 and 120,000 boed in 2021Q4. Ovintiv said in 2021Q4 in Permian it averaged four gross rigs, drilled 20 net wells and had 16 net wells turned in line. The number of wells were reduced as Ovintiv transitioned to longer laterals. Ovintiv laterals averaged 11,600 feet through Q3 and 14,000 feet in Q4 with plans to exceed 14,000 in 2022.
Ovintiv said Permian drilling and completion costs were 10 percent lower in 2021 than 2020. Ovintiv used simul-frac on 90 percent of Permian completions in 2021. Greg Givens, COO, told Enverus, “The simplest path to mitigate higher cost is to reduce the amount of time spend on location, and that is exactly what we are doing. By establishing a new efficiency frontier, we generated well cost savings of approximately $60 per foot in 2021 compared to the industry average.”
Ovintiv expects capital investment in 2022 of $1.5 billion with oil and condensate production volumes of 180,000 to 190,000 b/d.