Devon Energy To Acquire Key Oil-focused Leasehold In Stack, Powder River Basin

(RTTNews) - Devon Energy Corp. (DVN) Monday said it has agreed to acquire 80,000 net surface acres, in the Anadarko Basin Stack play from privately held Felix Energy, a portfolio company of EnCap Investments, for $1.9 billion. The surface acres are located in Blaine, Canadian and Kingfisher counties in Oklahoma. The acquired properties include production of approximately 9,000 oil-equivalent barrels per day and estimated risked resource of around 400 million Boe.

Separately the Company said it has also agreed to acquire 253,000 net acres in the Powder River Basin for $600 million. The transactions will be funded in a combination of equity and cash, with around $1.35 billion of Devon equity issued to sellers and approximately $1.15 billion of cash on hand and borrowings.

Dave Hager, president and CEO said, "These acquisitions materially core up our position in two of the best emerging North America development oil plays and further upgrade our asset portfolio."

Davon Energy said, the EnLink Advantage Secures STACK Acquisition. EnLink Midstream has agreed to acquire Tall Oak Midstream, a portfolio company for EnCap Flatrock Midstream, for $1.55 billion.

Upon closing of the Felix assets in early 2016, Devon's daily production in the Stack play, which includes the Cana-Woodford development, will increase to an industry-leading total of nearly 80,000 Boe per day.

Upon closing the transaction, Devon's daily production from its Rockies business unit will increase to more than 30,000 Boe per day, and its Powder River Basin leasehold position will more than double to 470,000 net acres with stacked-pay potential across multiple oil-prone formations.