Ovintiv Inc. has closed its previously announced acquisition of core Midland basin assets, adding 1,050 net 10,000-ft well locations and about 65,000 net acres of largely undeveloped land adjacent to Ovintiv's existing Permian operations. The company expects to nearly double its Permian basin oil and condensate production to about 125,000 b/d now that the deal has closed.
Ovintiv acquired substantially all the leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources, which are portfolio companies of funds managed by EnCap Investments LP, in a cash and stock transaction valued at $4.275 billion. About 97% of the acquired acreage is held by production with an average operated working interest of 82% (OGJ Online, Apr. 3, 2023).
Ovintiv also closed the previously announced all cash sale of its Bakken assets in Williston basin, North Dakota, to Grayson Mill Bakken LLC, a portfolio company of funds managed by EnCap for $825 million. The sale represents the entirety of Ovintiv's Bakken position.