Ovintiv to sell certain Uinta, Bakken assets for $250 million

Ovintiv Inc., Denver, has agreed to sell portions of its Uinta and Bakken basins assets for $250 million to two undisclosed buyers. The company plans to update its 2022 production and total cost guidance with its second quarter results. The 2022 capital guidance will remain unchanged, the company said in a release July 6.

The operator said the Uinta basin assets being sold are mature waterflood assets with operating expenses of about $35/boe. The assets include about 3,000 gross vertical wells, the company continued. Following closing of the deal, Ovintiv will retain some 130,000 net acres in the horizontal oil-rich shale portion of the play.

The Bakken assets to be sold include about 88 wells mainly in Richland County, Mont., about 30 miles from Ovintiv's primary Bakken position, the company said.

Combined volumes from the assets to be sold, as of April 2022, is 5,000 boe/d, including 4,900 b/d of oil and condensate.

The agreements are subject to ordinary closing conditions, regulatory approvals, and other adjustments and are expected to close in this year’s third quarter.