Nov 14 (Reuters) -

Shale producer Ovintiv ( OVV ) said on Thursday it will

acquire some oil assets from Paramount Resources ( PRMRF ) for

about $2.38 billion in cash, strengthening its position in

Canada's prolific Montney shale play.

The shale formation, which spans northern Alberta and

British Columbia, accounts for roughly half of Canada's gas

production.

The assets are located near Ovintiv's ( OVV ) current operations

and would add nearly 70,000 barrels of oil equivalent per day of

production at the Montney formation in Alberta.

Ovintiv ( OVV ) also said it would sell its Uinta Basin assets,

located in Utah, to FourPoint Resources for $2 billion.

Both transactions are expected to close by the first

quarter of 2025.

It will finance the Montney acquisition through a

combination of cash proceeds received from the sale of its Uinta

assets, cash on hand and borrowings under its credit facility or

temporary financing, Ovintiv ( OVV ) said.

It has paused its share buyback program until the cash

borrowed under the temporary financing is recovered, the company

said.

Ovintiv ( OVV ) expects to resume the buybacks in the second

quarter of 2025.