Denver-based Ovintiv said this week that following closing of its latest Midland Basin acquisition it plans to moderate drilling activity in the acquired assets. Ovintiv said it will move from 7 operated rigs to 2 for a total of 5 rigs operating across its combined Permian acreage. Ovintiv expects to deliver 2024 total company oil and condensate production of more than 200,000 barrels per day with total capital investment of $2.1 billion to $2.5 billion.
Ovintiv also said Monday as it announced the acquisition from EnCap Investments that it is selling its Bakken assets of 46,000 net acres in the Williston Basin of North Dakota to Grayson Mill Bakken, another portfolio company of funds managed by EnCap, for $825 million cash. Estimated 1Q Bakken production is 37,000 boed (60 percent oil).
Ovintiv purchased for $4.275 billion in stock and cash the assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources located near Ovintiv’s Permian position in Martin County. Ovintiv will double its production of oil and condensate to about 125,000 b/d and increase its position in Permian to about 179,000 net acres.