US-based Devon Energy has unveiled plans to sell up to $1bn worth of upstream assets across its portfolio.
The non-core assets identified for divestment include select portions of the Barnett Shale with most of the assets around Johnson County.
Devon is also planning to divest other properties located principally within its US resource base.
The company intends to begin the divestiture program in the second quarter of this year, which is expected to be completed over the next 12 to 18 months.
Devon is planning to use the divestiture proceeds to develop its US resource plays, in addition to strengthening its investment-grade financial position.
According to the company, the non-core divestiture plan is expected to accelerate the firm’s transition to higher-margin production.
The company is focusing more on the Delaware Basin, where it is expecting more than 30,000 potential drilling locations, of which one third were successfully de-risked.
Devon’s risked resource base in the US will be further expanded, based on the ongoing STACK appraisal work and further testing of the Leonard and Wolfcamp zones in the Delaware Basin.
Devon Energy president and CEO Dave Hager said: “The successful resource expansion in our world-class STACK and Delaware Basin assets has generated an abundance of opportunities within our portfolio.
“Given the multi-decade growth platform these franchise assets provide, we are taking this initial step to bring value forward from non-core assets and sharpen our focus on the highest-returning growth inventory in our portfolio.
“This divestiture program, combined with our excellent liquidity and strong hedge position, supports our capital program and places us firmly on track to achieve our production growth targets in 2017 and 2018.”