An oil rig in Alberta, Canada. (Source: Shutterstock)
Athabasca Oil Corp. has closed a previously announced transaction with Cenovus Energy Inc. to create Duvernay Energy Corp., a pure-play Kaybob Duvernay E&P.
Duvernay Energy is a privately held subsidiary of Athabasca. Athabasca and Cenovus contributed assets to the new company—combining Athabasca's Duvernay assets and Cenovus' Kaybob Duvernay assets. Athabasca owns a 70% equity interest in Duvernay Energy, with Cenovus owning the remaining equity interest.
Duvernay Energy averages about 2,000 boe/d (75% liquids). The company’s 2024 production guidance is an average 3,000 boe/d (75% liquids). Development plans are underway to ratchet up production in 2025 to an estimated 6,000 boe/d.
The new company’s 2024 capital program aims to drill 7.1 net wells for about $82 million.
The company has exposure to approximately 46,000 acres of 100% working interest-operated lands that are largely contiguous with existing assets in the area.
The transaction closed on Feb. 6 with an effective date of Jan. 1, 2024.
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