CALGARY — Ovintiv is expanding its Canadian oil footprint with a planned takeover of Logan Energy that would add thousands of barrels of daily production and hundreds of potential drilling locations.The company announced Monday it would acquire the Canadian producer in a cash transaction valued at approximately $890 million, including debt, Reuters reported.Under the agreement, Ovintiv would pay $1.40 per Logan share. The acquisition is expected to close early in the first quarter of 2027.The purchase would give Ovintiv approximately 266,000 net acres in the oil-rich Montney region, along with production of roughly 20,000 barrels of oil equivalent per day..Alberta producers target overlooked shale gas play for oil growth.Ovintiv said the assets include about 420 net drilling locations, including 220 wells it classifies as offering premium returns.The company expects the acquisition to generate approximately $60 million in annual cost savings.The package also includes two oil batteries and ownership stakes in two gas-processing facilities. Ovintiv said the infrastructure would help support margins and future production growth.Logan shareholders would also receive shares in Logan Oil Corp., a newly formed subsidiary that will be spun out as part of the transaction.Those shares would initially be valued at approximately $0.08 per Logan share. Combined with the cash payment, the stated consideration would total approximately $1.48 per share. Shareholders would also receive warrants.The proposed takeover follows another major move by Ovintiv to expand its Montney holdings.In 2024, the company agreed to purchase Paramount Resources’ Montney assets for $2.38 billion while selling its Uinta operations in Utah to FourPoint Resources for $2 billion.
