Athabasca Oil Corp. ATH-T and Cenovus Energy Inc. CVE-T say they will create a new joint venture stand-alone company called Duvernay Energy Corp.
The two companies say Athabasca will own a 70 per cent equity interest in Duvernay Energy with Cenovus owning the remaining 30 per cent.
The companies will jointly fund the creation of Duvernay, with Athabasca contributing $22-million in seed capital and Cenovus contributing $18-million.
The creation of the joint venture will consolidate the two companies’ assets in the prolific Kaybob Duvernay resource play in northwest Alberta.
The companies say current production from the Duvernay Energy assets is 2,000 barrels of oil equivalent per day, and they plan to grow that to 25,000 boe/d by the end of the decade.
Athabasca will manage Duvernay Energy through a management and operating services agreement. Duvernay’s board of directors will include three members nominated by Athabasca and one member nominated by Cenovus.