Devon to sell three GoM assets to Maersk Oil

Devon Energy has agreed to sell its interests in three Lower Tertiary development projects in the Gulf of Mexico to Maersk Oil for $1.3 billion.

Offshore staff

OKLAHOMA CITY -- Devon Energy has agreed to sell its interests in three Lower Tertiary development projects in the Gulf of Mexico to Maersk Oil for $1.3 billion. The agreement covers Devon's 50% working interest in the Cascade project and its 25% working interests in the Jack and St. Malo projects. All three projects are in the deepwater Walker Ridge federal lease area offshore Louisiana.

Devon has no current production or proved reserves associated with these projects. The transaction reduces Devon's 2010 capital budget for the GoM by approximately $400 million.

“This is an important first step in executing our plan to divest all of our Gulf of Mexico and international assets and to reposition Devon as a purely North American onshore company,” says John Richels, Devon's president. “We intend to apply the sales proceeds to debt reduction and to accelerate investment in our world-class North American onshore assets.”

12/22/2009

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