Devon Energy Corp. agreed to a drilling joint venture (JV) on Dec. 10 in the Stack play considered by analysts to be a creative solution as E&Ps remain focused on capital discipline.

The JV, with Dow, spans 133 undrilled locations in the liquids-rich portion of Devon Energy’s Stack position in central Oklahoma. As part of the deal, Devon monetized half of its working interest in the locations in exchange for a $100 million drilling carry over the next four years.

The partnership is the second Devon Energy has formed with Dow in recent years as E&Ps are increasingly left with fewer capital options. The earlier agreement was for a JV partnership in the Barnett Shale the companies entered into in May 2018.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access
Need more than one account? See Group Subscription options
Onshore