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.
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