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Devon to Sell Three Gulf Projects for $1.3 Billion

Tuesday, 22 Dec 2009 09:22 AM

Devon Energy Corp. said Tuesday that it will sell three development projects in the Gulf of Mexico to Maersk Oil for $1.3 billion, part of its strategy to reposition the company as a North American onshore company.

The projects are in the deepwater Walker Ridge federal lease area off of Louisiana. The deal covers Devon's 50 percent working interest in the Cascade project and 25 percent working interests in the Jack and St. Malo projects.

Devon Energy, based in Oklahoma City, said it expects to receive after-tax proceeds of $1.1 billion from the deal. The money will be used to reduce debt.

The company has no current production or proved reserves associated with these projects. The sale also will cut Devon's previously announced 2010 capital budget for the Gulf of Mexico by $400 million.

Devon said last month that it wanted to sell its Gulf of Mexico and international assets. The company estimates that it will receive after-tax proceeds of $4.5 billion to $7.5 billion from the sales, including the one announced Tuesday.

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Devon Energy Corp. said Tuesday that it will sell three development projects in the Gulf of Mexico to Maersk Oil for $1.3 billion, part of its strategy to reposition the company as a North American onshore company.The projects are in the deepwater Walker Ridge federal lease...
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