OKLAHOMA CITY, April 8, 2008 /PRNewswire-FirstCall/ -- Devon Energy Corporation announced today that it has agreed to sell its oil and gas business in the African nation of Equatorial Guinea for $2.2 billion. The buyer is GEPetrol, the national oil company of Equatorial Guinea.
Devon estimates its after-tax proceeds will be approximately $1.7 billion. The effective date of the sale is January 1, 2008. Completion of the transaction is subject to customary closing conditions and approvals. Devon expects closing to occur on or before May 30, 2008.
Devon's principal asset in Equatorial Guinea is its 23.75 percent participating interest in the Zafiro offshore oil field, located on Block B. Estimated proved reserves attributable to Zafiro were 55 million barrels of oil at year-end 2007. Devon's share of production from Zafiro is currently about 20,000 barrels per day.
Other assets included in the transaction are Devon's interests in offshore Blocks C and P. The two blocks are undeveloped.
"This transaction represents the largest piece of our African divestiture program," said John Richels, Devon's President. "With aggregate pre-tax proceeds of the announced transactions surpassing $3 billion, the divestiture results have exceeded our expectations."
Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is the largest U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For additional information, visit http://www.devonenergy.com/.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements are those concerning the strategic plans, expectations and objectives for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company.
Devon Energy Corporation
