Published:
Devon Energy Agrees to Sell Assets in Equatorial Guinea for $2.2 Billion
OKLAHOMA CITY, April 8, 2008 /PRNewswire-FirstCall/ -- Devon Energy
Corporation (NYSE: DVN) announced today that it has agreed to sell its oil and
gas business in the African nation ofEquatorial Guinea for $2.2 billion. The
buyer is GEPetrol, the national oil company ofEquatorial Guinea.
Devon estimates its after-tax proceeds will be approximately $1.7 billion.
The effective date of the sale is January 1, 2008. Completion of the
transaction is subject to customary closing conditions and approvals. Devon
expects closing to occur on or before May 30, 2008.
Devon's principal asset inEquatorial Guinea is its 23.75 percent
participating interest in the Zafiro offshore oil field, located on Block B.
Estimated proved reserves attributable to Zafiro were 55 million barrels of
oil at year-end 2007. Devon's share of production from Zafiro is currently
about 20,000 barrels per day.
Other assets included in the transaction are Devon's interests in offshore
Blocks C and P. The two blocks are undeveloped.
"This transaction represents the largest piece of our African divestiture
program," said John Richels, Devon's President. "With aggregate pre-tax
proceeds of the announced transactions surpassing $3 billion, the divestiture
results have exceeded our expectations."
Devon Energy Corporation is anOklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is the
largest U.S.-based independent oil and gas producer and is included in the S&P
500 Index. For additional information, visit http://www.devonenergy.com.
This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements are those concerning the
strategic plans, expectations and objectives for future operations. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future are
forward-looking statements. These statements are based on certain assumptions
made by the company based on its experience and perception of historical
trends, current conditions, expected future developments and other factors it
believes are appropriate in the circumstances. Such statements are subject to
a number of assumptions, risks and uncertainties, many of which are beyond the
control of the company.
SOURCE Devon Energy Corporation
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