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.
Recommended Reading
Enbridge Closes First Utility Transaction with Dominion for $6.6B
2024-03-07 - Enbridge’s purchase of The East Ohio Gas Co. from Dominion is part of $14 billion in M&A the companies announced in September.
‘Unexpected’ JV to Move Permian NatGas to Gulf Coast LNG Terminals
2024-03-26 - A trio of midstream companies—Enbridge, Whitewater and MPLX—will work together to build infrastructure to transport Permian Basin natural gas to Gulf Coast LNG terminals.
Pembina Cleared to Buy Enbridge's Pipeline, NGL JV Interests for $2.2B
2024-03-19 - Pembina Pipeline received a no-action letter from the Canadian Competition Bureau, meaning that the government will not challenge the company’s acquisition of Enbridge’s interest in a joint venture with the Alliance Pipeline and Aux Sable NGL fractionation facilities.
Making Bank: Top 10 Oil and Gas Dealmakers in North America
2024-02-29 - MergerLinks ranks the key dealmakers behind the U.S. biggest M&A transactions of 2023.
Marketed: Team Operating Gulf Coast Opportunity
2024-03-19 - Team Operating LLC has retained PetroDivest Advisors for the sale of certain oil and gas leasehold and related assets spanning multiple counties in Texas, Louisiana and Mississippi.