The Barnett Shale assets include more than 4,200 producing wells across 320,000 acres
Devon Energy has agreed to sell its Barnett Shale assets to an affiliate of Kalnin Ventures’ investment vehicle BKV Oil & Gas Capital Partners for $770m.
The Barnett Shale assets include more than 4,200 producing wells across 320,000 acres.
The net production from the Barnett Shale properties averaged 597 million cubic feet equivalent per day in the third quarter of 2019.
At year-end 2018, proved reserves associated with these properties amounted to nearly 4 trillion cubic feet equivalent.
BKV CEO Christopher Kalnin said: “We are excited to announce this acquisition in the Barnett Shale, as this continues our strategy of PDP weighted cash flow yielding investments, where we can leverage technology to drive operational performance.
“Devon has done wonderful work in the Barnett Shale and we look forward to continuing that tradition, delivering high-quality returns for many years to come.”
The transaction is expected to be completed in 2020, subject to customary closing conditions.
The deal is the seventh acquisition of BKV and first in the Barnett Shale play.
Since its formation in 2015, BKV has invested or committed over $1.3 bn. BKV is financially supported by Thailand-based coal mining and power-generation company Banpu.
For the Barnett Shale transaction, Jefferies and Citi have served as financial advisor to Devon, while Vinson & Elkins has acted as legal advisor to Devon.
On the other hand, Willkie Farr & Gallagher served as a legal advisor to BKV.
Devon Energy sold Canadian heavy oil assets to Canadian Natural for $2.8bn in May
In May, Devon Energy had announced its exit from Canada by divesting its operations in the country to Canadian Natural Resources for $2.8bn.
The business to be divested, called Devon Canada, owns heavy oil assets that are mainly located in Alberta. The assets’ net production averaged 113,000 oil-equivalent barrels in the first quarter of 2019.
At year-end 2018, proved reserves associated with Devon Canada’s assets totaled nearly 409 million barrels of oil.