This is inventory math, not a production guide raise
Ovintiv Inc. (TSX: OVV, NYSE: OVV) said August 26 it has entered more than 60 ground game transactions year to date. The deals will add about 41,000 net acres across the Permian and Montney for approximately $460 million in total acquisition cost.
The transactions add 240 net 10,000-foot equivalent well locations to Ovintiv's inventory, split 190 base and 50 upside. Ovintiv cited roughly $11,000 per net acre and about $1.3 million to $1.7 million per location when adjusted for minimal production on the acquired lands.
In the Permian, Ovintiv is picking up about 21,000 net acres and 120 locations in the Midland basin for roughly $230 million. In the Montney, it is acquiring about 20,000 net acres and 120 locations in the liquids-rich Alberta oil window for another $230 million.
Including 260 locations from organic inventory enhancement, Ovintiv said it has added about 500 net 10,000-foot equivalent locations year to date. Remaining transactions are expected to close before year end.