Benzinga | Sep 1, 2020 05:31PM EDT

Ovintiv Reports Its Canadian Subsidiary Closed Deal With PetroChina Canada To Terminate Joint Venture, Transfer Ownership, Operation Of Certain Duvernay Shale Assets In West-Central Alberta

Ovintiv Inc. (NYSE:OVV) (TSX:OVV) today announced that its subsidiary, Ovintiv Canada ULC, has closed an agreement with PetroChina Canada Ltd. (PCC) to terminate the parties' joint venture and transfer the ownership and operation of certain Duvernay shale assets in west-central Alberta. Ovintiv and PCC have agreed to partition the Duvernay acreage and associated infrastructure as each company will independently own and operate their interests going forward. There were no penalties or fees associated with this transaction.

Ovintiv and PCC have been in a productive joint venture in the Duvernay since 2012. Prior to today's agreement, the parties each held an approximate 50% interest across the entire asset with Ovintiv serving as operator. Following the close of this transaction, Ovintiv's net production, proved reserves and acreage in the Duvernay will be unchanged. Ovintiv will have a consolidated interest in approximately 250,000 net acres and its second quarter 2020 average net daily production from the Duvernay was approximately 13,000 BOE/d (43% liquids).