Ovintiv Inc. (Ovintiv) and Logan Energy Corp. (Logan) has announced that they have entered into a definitive agreement whereby Ovintiv will acquire all of the outstanding shares of Logan in an all-cash transaction that values Logan at approximately US$890 million (CAN$1.26 billion) including expected Net Debt at closing. The acquisition is expected to add approximately 420 total net 10 000-ft equivalent oil well locations, and approximately 266 000 net acres (approximately 200 000 core acres, 80% undeveloped) in the Montney oil window. Current production from the acquired assets is approximately 20 000 boe/d (approximately 7000 bpd of oil and condensate, 70 million ft3/d of natural gas and 1 Mbbls/d of other NGLs (C2 to C4)). The assets are located in close proximity to Ovintiv's existing Montney operations and include two new oil batteries and additional natural gas processing capacity.
"This bolt-on transaction delivers value for our shareholders by adding high margin oil and condensate production and infrastructure, utilising our operational advantage to drive significant synergies, and adding to our already deep drilling inventory and future growth optionality," said Ovintiv President and CEO, Brendan McCracken. "The Logan assets have demonstrated leading oil productivity performance and will immediately compete for capital alongside the rest of our portfolio."
