Devon Energy Corp.

Transaction Type
Gulf of Mexico
Post Date
Estimated Price

Devon Energy Corp., Oklahoma City, (NYSE: DVN) is seeking a partner to participate in its lower tertiary developments in the Gulf of Mexico to reduce long-term development commitments, the company announced in a conference call. The company is one of the larger independent acreage holders in the play and holds more than 50% average interest in the blocks with more than 900 barrels of oil of estimated net resource potential, according to Devon. Devon chairman and chief executive Larry Nichols said, "This is a very valuable package. We believe that this opportunity will have appeal to large companies around the world. The benefits to a potential partner would be to obtain an interest in four significant oil discoveries, plus a share of our exploration prospect and lease inventories. For Devon, our share of the ongoing capital commitments would be reduced, while we would maintain and keep a meaningful interest in the play." Devon's Lower Tertiary interests include a 25% working interest in both the Jack and St. Malo projects; a 50% owned development with Petrobras at Cascade; and a 30% working interest in Kaskida including co-owner BP Plc. "Fortunately, we are under no pressure to execute a transaction and will not part with these valuable assets in any kind of a discount," Nichols said, and that the company would consider a swap of assets as well as cash consideration. The company expects to open a data room " within the next several weeks," it reports. Contact Zack Hager, (405) 552-4526.