Devon to sell Mississippian assets for $200mn

OREANDA-NEWS. April 21, 2016.  Devon Energy has agreed to sell its producing assets in Oklahoma's Mississippian formation to White Star Petroleum for \\$200mn as part of a plan to reduce its holdings amid low oil and natural gas prices.

Net first quarter production associated with the Mississippian assets was 12,800 b/d of oil equivalent (boe). Those assets include 210,000 acres in central and northern Oklahoma, 555 operated and non-operated wells and proven reserves of 11mn boe.

Devon will use the proceeds from the sale, which is scheduled to close in the second quarter, to shore up its balance sheet. The money will also support the development of its key operating areas such as south Texas' Eagle Ford shale and the Permian basin in west Texas and southeastern New Mexico.

Independent producers such as Devon, Chesapeake Energy and Whiting Petroleum are selling assets to cope with a prolonged slump in energy prices.

Devon is targeting asset sales this year of \\$2bn-\\$3bn, including its 50pc stake in the Access oil pipeline in Canada. The company said it expects to announce the sale of that interest in the first half of this year.