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 of Equatorial Guinea for $2.2
billion. The buyer is GEPetrol, the national oil company of Equatorial
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 in Equatorial 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 an Oklahoma 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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Related links:
http://www.devonenergy.com
http://www.prnewswire.com/comp/118040.html /
CONTACT:
Investors, Zack Hager, +1-405-552-4526, or
Media, Chip Minty, +1-405-228-8647, both of Devon Energy
Corporation
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