CALGARY — Ovintiv Inc. says it has signed a deal to buy a group of assets in the Montney region from Paramount Resources Ltd. in an all-cash deal valued at about US$2.38 billion

The deal will add about 70,000 barrels of oil equivalent per day of production.

Ovintiv says the assets are strategically located near its current operations and have access to midstream infrastructure with available capacity.

Ovintiv chief executive Brendan McCracken says the acquisition is the result of an in-depth technical and commercial analysis of the basin to identify the highest value undeveloped oil resource.

The company also announced it has signed a deal to sell substantially all of its Uinta Basin assets in Utah, to FourPoint Resources, LLC, for total cash proceeds of about US$2.0 billion.

Cash from the Uinta deal is expected to be used to help fund the Montney acquisition.

This report by The Canadian Press was first published Nov. 14, 2024.

Companies in this story: (TSX:OVV, TSX:POU)

The Canadian Press