Under the terms of the deal, Devon Energy will acquire 80,000 net surface acres, with up to 10 prospective zones, in the Anadarko Basin STACK play which is spread over Oklahoma and Texas.
The company also agreed to acquire 253,000 net acres in the Powder River Basin for $600m.
Devon expects that the acquisition of the assets will strengthen its position in two North America development oil plays.
Separately, Devon’s pipeline unit EnLink Midstream also signed an agreement to acquire subsidiaries of Tall Oak Midstream, a portfolio company for EnCap Flatrock Midstream, for $1.55bn.
The subsidiary entities considered for the sale comprise all of Tall Oak’s Oklahoma assets including the Stack Natural Gas System, the Stack Crude Oil System and the CNOW Natural
The deal is and is subject to customary closing conditions, including regulatory approvals as well as the completion of Devon Energy’s acquisition of Felix Energy due in next year.
Devon Energy president and CEO Dave Hager said: "The synergistic relationship of these assets and our ownership in EnLink allowed the simultaneous acquisition of Felix’s upstream business by Devon with EnLink acquiring the associated midstream infrastructure of Tall Oak."
Additionally, Devon has identified 50,000 to 80,000 Boe per day of production from non-core assets for divestment throughout 2016. It is a part of the company’s effort to raise $2bn to $3bn through the sale of midstream and upstream assets.
Devon, which is also in the process of marketing its Access Pipeline in Canada, plans to use the proceeds to strengthen its financial position.
Hager added: "In an effort to focus exclusively on our very best resource plays, strengthen our already solid financial position and drive investor value, we are also announcing our intent to divest non-core assets.
"This will sharpen our focus on what we believe to be the best oil and gas assets in North America."
Image: Devon plans to sell midstream and upstream assets. Photo: courtesy of suwatpo/ FreeDigitalPhotos.net.
