With Montney Production Set to Grow, US E&Ps Seize Opportunities

Canada’s Montney Shale play has already attracted U.S. companies Ovintiv, Murphy and ConocoPhillips while others, including private equity firms, continue to weigh their options.

The largest Montney producer and the third-largest gas producer in Canada at 1.3 Bcf/day, ARC Resources is continuing to invest in the Montney play, but U.S. operators are moving in. (Source: ARC Resources)

Three U.S. companies— ConocoPhillips, Ovintiv and Murphy Oil—are currently entrenched in Canada’s Montney Shale. And with good reason as they continue to carry over the U.S. shale boom to the north of the border.

The Montney boasts double-digit IRRs and Tier 1 acreage with a longer inventory lifespan than the Permian Basin due to lower activity levels than the extremely busy West Texas play. And new export infrastructure projects offer market diversity for varied products coming out of Montney.

In the Western Canada Sedimentary Basin (WCSB), the Montney is primarily a condensate-rich natural gas play in northwest Alberta and northeast British Columbia (BC). The play offers both a scaled and developmental runway, and provides a one-stop shop with multiple product optionality: gas, oil and condensate.

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Pietro D Pitts

International Managing Editor. Previous work: Bloomberg Venezuela, LatinPetroleum Magazine and Banco Santiago de Leon in Caracas; Energy Intelligence, Jefferies, and Morgan Keegan in Houston; Banco Mercantil del Norte (Banorte) in Mexico City. Degrees: Finance (University of Houston). Languages: English and Spanish fluency, Portuguese understanding.

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With Montney Production Set to Grow, US E&Ps Seize Opportunities

Canada’s Montney Shale play has already attracted U.S. companies Ovintiv, Murphy and ConocoPhillips while others, including private equity firms, continue to weigh their options.

The largest Montney producer and the third-largest gas producer in Canada at 1.3 Bcf/day, ARC Resources is continuing to invest in the Montney play, but U.S. operators are moving in. (Source: ARC Resources)

Three U.S. companies— ConocoPhillips, Ovintiv and Murphy Oil—are currently entrenched in Canada’s Montney Shale. And with good reason as they continue to carry over the U.S. shale boom to the north of the border.

The Montney boasts double-digit IRRs and Tier 1 acreage with a longer inventory lifespan than the Permian Basin due to lower activity levels than the extremely busy West Texas play. And new export infrastructure projects offer market diversity for varied products coming out of Montney.

In the Western Canada Sedimentary Basin (WCSB), the Montney is primarily a condensate-rich natural gas play in northwest Alberta and northeast British Columbia (BC). The play offers both a scaled and developmental runway, and provides a one-stop shop with multiple product optionality: gas, oil and condensate.

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Gain access to limited free articles, energy news and analysis, exclusive interviews, and newsletters.

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Comments

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This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.