Devon Energy Corp. is adding 50,000 net acres in one of its core operating areas, western Oklahoma’s Cana Woodford Shale.
Devon will pay about $249 million in cash for the added acreage, which is part of a $497.4 million deal Cimarex Energy Co. negotiated with an unnamed seller.
Cimarex, which will double its holdings in the Cana Woodford, has agreed to sell half of the assets it is acquiring to Devon. The deal is expected to close by the end of June.
“Consistent with our philosophy to add scale and scope to our operations, this acquisition significantly bolsters our position in one of our liquids-rich core development areas,” said Dave Hager, Devon’s chief operating officer.
“These assets directly overlap our existing core Cana position and expand our exposure to other western Oklahoma oil and gas plays.”
Devon currently holds about 300,000 acres in the Anadarko Basin, which also includes the Granite Wash play in the Texas Panhandle.
The company produced about 85,000 barrels of oil equivalent a day in the area during the last three months of 2013.
The new acreage will add about 5,800 barrels a day, as well as about 23 million barrels of proved reserves in the liquids-rich play.
Devon officials have identified the Cana Woodford as one of the company’s five core operating areas, along with Texas’ Permian Basin, Eagle Ford Shale, Barnett Shale and Canada’s oil sands.
The company also is developing additional areas in northern Oklahoma and Wyoming, while looking to sell assets in some other areas.