OKLAHOMA CITY--(BUSINESS WIRE)--Sep. 27, 2012--
Devon Energy Corporation (NYSE:DVN) today announced the closing of its
previously announced $1.4 billion joint venture agreement with Sumitomo
Corporation. The joint venture covers approximately 650,000 net acres in
the Cline Shale and the Midland-Wolfcamp Shale. Sumitomo will invest
$1.4 billion in exchange for 30 percent of Devon’s interest in these
projects.
At closing, Sumitomo invested $410 million in cash, composed of the
initial cash contribution and Sumitomo’s share of costs since the
effective date of the transaction. The remaining $980 million will be
invested in the form of a drilling carry. The drilling carry will fund
70 percent of Devon’s capital requirements, resulting in Sumitomo paying
79 percent of the overall drilling and completion costs during the carry
period. Devon will serve as operator and expects the entire drilling
carry to be realized by mid-2014.
“With the close of the Sumitomo transaction, we have now successfully
entered two exploration joint ventures during 2012, approaching $4
billion in value to our company,” said
John Richels
, Devon’s president
and chief executive officer. “These arrangements significantly improve
the capital efficiency of our exploration programs which preserves cash
flow for our deep inventory of development projects.”
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is a
leading U.S.-based independent oil and gas producer and is included in
the S&P 500 Index. For additional information, visit www.devonenergy.com.
This press release includes "forward-looking statements" as defined
by the Securities and Exchange Commission. Such statements are those
concerning 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. Such statements
are subject to a number of assumptions, risks and uncertainties, many of
which are beyond the control of the company. These risks include, but
are not limited to the volatility of oil, natural gas and NGL prices;
political, economic or public policy changes; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks; and
environmental risks. Investors are cautioned that any such statements
are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the
forward-looking statements. The forward-looking statements in this press
release are made as of the date of this press release, even if
subsequently made available by Devon on its website or otherwise. Devon
does not undertake any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Source: Devon Energy Corporation
Devon Energy Corporation
Investor Contacts
Scott Coody,
405-552-4735
or
Shea Snyder, 405-552-4782
or
Media
Contact
Chip Minty, 405-228-8647