Utah’s Uinta Basin; A multi-frac job being completed for Berry Corp. in Duchesne County, Utah. (Source: Berry Corp.)
Ovintiv Inc. has closed a sale of assets in Utah’s Uinta Basin to FourPoint Resources for approximately $2 billion in cash.
The transaction includes 126,000 net acres in the Uinta’s oil window. Production from the assets averaged 29,000 bbl/d at when the deal was announced in November.
The assets are primarily within Duchesne and Uintah counties, Utah, according to Ovintiv’s regulatory filings.
"The Uinta sale builds on our track record of unlocking significant value from our non-core assets while focusing our portfolio and extending inventory runway in our core areas," Brendan McCracken, president and CEO of Ovintiv, said in a Jan. 22 statement.
FourPoint is backed by private equity partners Quantum Capital Group and Kayne Anderson.
FourPoint takes over some of the highest quality acreage in the Uinta Basin, according to analytics firm Novi Labs. Though it has lower reservoir pressure than SM Energy’s asset to the north, FourPoint’s assets include significant upside in the secondary Castle Peak and Douglas Creek benches.
Ovintiv is using proceeds from the Uinta sale to acquire Montney assets from Paramount Resources Ltd. for US$2.38 billion (CA$3.33 billion) in cash.
The Paramount deal will add 109,000 net acres (80% undeveloped) and 70,000 boe/d of production (~25,000 bbl/d of oil and condensate) to Ovintiv’s Montney portfolio.
The Paramount transaction is expected to close before the end of the first quarter, Ovintiv said.
RELATED
CEO: Ovintiv Passes on Permian Prices for More Montney Condensate
Recommended Reading
CEO: Berry Gears Up for Horizontal Drilling in Uinta Stacked Pay
2024-12-13 - Berry Corp.’s legacy roots are in California’s Central Valley—but its growth engine is in Utah’s emerging Uinta Basin, CEO Fernando Araujo told Hart Energy.
Shale Outlook Uinta: Horizontal Boom to Continue in 2025
2025-01-11 - After two large-scale transactions by SM Energy and Ovintiv, the Uinta Basin is ready for development—and stacked pay exploration.
Early Innings: Uinta’s Oily Stacked Pay Exploration Only Just Starting
2025-03-04 - Operators are testing horizontal wells in less developed Uinta Basin zones, including the Douglas Creek, Castle Peak, Wasatch and deeper benches.
More Uinta, Green River Gas Needed as Western US Demand Grows
2025-01-22 - Natural gas demand in the western U.S. market is rising, risking supply shortages later this decade. Experts say gas from the Uinta and Green River basins will make up some of the shortfall.
PRB’s Sage Butte Ready for M&A Across Lower 48, Maybe Canada Too
2025-01-08 - Private E&P Sage Butte Energy, which operates in the Powder River Basin, is less interested in the Permian Basin, citing the cost of entry.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.