Five New Permits; Six DUCs Reported As Completed; Ovintiv-Grayson Mill Wells -- November 1 ,2023

Locator: 45902B.

WTI: $81.04.

Five new permits, #40309 -$40313, inclusive:

• Operators: Hess (4), Empire North Dakota
• Fields: Manitou (Mountrail), Starbuck (Bottineau)
• Comments:
• Empire North Dakota has a permit for a Woodpecker well in SWSE 29-161-78, 
• to be sited 450 FSL andd 2368 FEL
• Hess has permits for four more EN-Rice wells, lot 3, section 3-155-94, 
• to be sited between 454 FNL and 495 FNL and between 2035 FWL and 2124 FWL; the Hess EN-Rice wells are tracked here.
  

Six producing wells (DUCs) reported as completed:

• 39539, 629, WPX, Two Shields Butte 16-8-7-13HA,
• 39540, 2,017, WPX, Two Shields Butte 16-8-7-13H3U,
• 39430, 356, Petro-Hunt, D Annunzio 148-10206B-7-1H,
• 39689, 687, WPX, Augustus 8-26H,
• 39665, 1,077, WPX, Cumuluus 14-33TFH,
• 39653, 700, WPX, Stratus 14-33H,

Change of operator: from Ovintiv to Grayson Mill -- about 415 wells. 

• April 3, 2023: Ovintiv, formerly Encana, expands in US with $4.3 billion deal for Permian oil assets; link here;
• June 16, 2023: Ovintiv closes purchase of Midland, sale of Bakken assets, link here;

Ovintiv also closed the sale of the entirety of its Bakken assets, located in the Williston Basin of North Dakota, to Grayson Mill Bakken LLC in an all-cash transaction of $825 million. Grayson Mill Bakken is a portfolio company of funds managed by EnCap.

Ovintiv’s landholdings in the play totaled 46,000 net acres as of December 31, 2022, and estimated first-quarter Bakken production is expected to average approximately 37,000 barrels of oil equivalent per day (boepd).

Ovintiv:

• one could have bought Ovintiv back in early 2000 for about $2 / share
• Ovintiv is trading at $47 / share today
• P/E: less than four
• pays: 2.5%
• market cap: $13 billion