Ovintiv Inc
I find it very strange that a company purchase a very prospective play area like Shells Kaybob Duvernay area, and then directs its capital to completing partner pads, and expanding the play area. My thinking was originally that the land base was so large and prospective, that they would be kept busy for ever, and they might be selling off more Sask assets.
Conspiracy Theory
Ovintiv wants out Canada and out of the Durvernay and CPG is partnering with them on a few well pads to evaluate the resouce and the play. In the mean time they might do a divesture of some assets, fix the balance sheet a bit more, then take out the Ovintiv lands.
Does that sound to crazy, i know the wells profile and this is a super rich area, with big wells and big reserves.
I am not sure CPG needs a bigger land base here but it might be handed to them on a silver platter by Ovintiv.
any thoughts.
IMHO