Devon Energy Corp. signs deal with Chinese oil company
Devon Energy Corp. has sealed a $2.5 billion deal with a Chinese oil company for a share of its acreage in five new resource plays.
Devon's stock rose $4.11, or 6.63 percent, on Tuesday after a deal with a Chinese company was announced, closing at $66.11.
Devon expects to exhaust Sinopec's investment by the end of 2014. The companies intend to drill about 125 wells this year in the five plays.
“While we are still in the early stages of derisking these plays, the tremendous response by industry to our data room process clearly underscores the attractiveness of this opportunity,” said Dave Hager, Devon's executive vice president of exploration and production.
“We believe our strong acreage positions in these plays, our reputation as a quality operator and the uniqueness of the opportunity for exposure to five different plays in a single venture make this a compelling value proposition,” he said.