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.
BY JAY F. MARKS jmarks@opubco.com Modified: January 3, 2012 at 9:21 pm •  Published: January 3, 2012
Advertisement
;

“This transaction also provides us further flexibility to seek exposure to additional new play types with less risk.”

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.


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.

Trending Now


AROUND THE WEB

  1. 1
    Tracy Morgan: I can't believe Walmart is blaming me
  2. 2
    Secret Service Director Julia Pierson resigns after security breaches
  3. 3
    Alleged White House fence-jumper pleads not guilty
  4. 4
    Best gig ever? Netflix wants to pay Instagrammers
  5. 5
    This photo isn't the best part of the story
+ show more