OKLAHOMA CITY, Nov. 14 /PRNewswire-FirstCall/ -- Devon Energy
Corporation (NYSE: DVN) today announced that it intends to divest its oil
and gas assets and terminate its operations in Egypt. The company's oil and
gas production from Egypt is currently about five thousand oil-equivalent
barrels per day. Egypt represents less than one percent of both Devon's
companywide production and proved reserves.
"Our decision to exit Egypt is primarily a matter of focus," said
Stephen J. Hadden, senior vice president, exploration and production.
"Devon's strategy continues to be to concentrate our resources in areas
that can provide meaningful future growth in companywide production and
value. Although we have established a solid production base and hold a
sizable suite of exploration opportunities in Egypt, we believe we can
redeploy our resources from Egypt to projects in and outside North America
that better fit our focused growth strategy."
"We also perceive the market conditions for international properties
with exploration and exploitation potential as very favorable today," added
Hadden. "Our Egyptian business could provide a stand-alone entry point for
a newcomer or complement the business of an operator already established in
the region."
Devon obtained its assets in Egypt primarily through the acquisition of
Ocean Energy in 2003. The assets to be offered include interests in eight
concessions, four in the Western Desert and four in the Gulf of Suez. Four
of the concessions are producing. The concessions comprise approximately
3.7 million gross (1.8 million net) acres.
The sale process will be managed for Devon by Scotia Waterous. Data
rooms for interested buyers will be opened in Houston and London in
December. Acceptance of bids and completion of a purchase and sale
agreement are anticipated in the first quarter of 2007. Devon did not
announce an expected sale price.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration, production and property
acquisitions. Devon is one of the world's leading independent oil and gas
producers and is included in the S&P 500 Index. For additional information,
visit http://www.devonenergy.com .
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, Brian Engel, +1-405-228-7750, both of Devon Energy
Corporation
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