Ovintiv closes Midland Basin deal, boosting production by 120,000 BPD.
Last week Ovintiv closed its acquisition of new Midland Basin assets by acquiring the leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources in a cash and stock transaction valued at $4.275 billion.
These new leaseholds are reported to add about 65,000 net acres of undeveloped land adjacent to Ovintiv’s existing operations. Ovintiv should expect to increase their total current oil and condensate production by 50,000 bbl/d, which would bring their total production to 120,000 bbl/d (according to TGS Well Data Analytics).
(Figure 1) TGS Well Data Analytics application showing the operator map, production plot and type curve for Ovintiv, PetroLegacy, Piedra, and Black Swan Midland Basin assets.
Using TGS Well Data Analytics we can see that Ovintiv, PetroLegacy, Piedra, and Black Swan operate in similar areas of the Midland Basin (Figure 1). A side-by-side type curve comparison indicates that their performance per well is also comparable.
According to Ovintiv, these new leaseholds will add about 1,000 net 10,000 ft lateral locations. According to TGS Well Data using recent vintage wells production data, Ovintiv’s average EUR is ~75 bbl/ft for this area. Therefore, Ovintiv can potentially add up to 600 million bbls of oil in the next 40 years considering their current working interest.
With TGS Well Data Analytics, this type of comparative analysis and benchmarking can be done in minutes. For more information on Well Data Analytics or to schedule a demo, contact us at WDPSales@tgs.com.
