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
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
US Drillers Cut Most Oil Rigs in a Week Since November
2024-04-26 - The number of oil rigs fell by five to 506 this week, while gas rigs fell by one to 105, their lowest since December 2021.
US Drillers Add Most Oil, Gas Rigs in a Week Since September
2024-03-15 - The oil and gas rig count, an early indicator of future output, rose by seven to 629 in the week to March 15.
US Drillers Add Most Oil Rigs in a Week Since November
2024-02-23 - The oil and gas rig count rose by five to 626 in the week to Feb. 23
US Drillers Add Oil, Gas Rigs for Third Time in Four Weeks
2024-02-09 - Despite this week's rig increase, Baker Hughes said the total count was still down 138 rigs, or 18%, below this time last year.