OKLAHOMA CITY, June 3 /CNW/ -- Devon Energy Corporation (NYSE: DVN)
announced today that it has completed the previously announced sale of its oil
and gas business in the African nation of Equatorial Guinea. The sale price
was $2.2 billion before taxes, $1.7 billion after taxes. The buyer is
GEPetrol, the national oil company of Equatorial Guinea. The effective date of
the sale was January 1, 2008.
"Equatorial Guinea was the most significant asset in our $3 billion
African divestiture program," commented John Richels, Devon's President. "We
are very pleased with the results of the program and expect to complete the
remaining approximately $250 million in transactions in the third quarter."
The divested properties in Equatorial Guinea include estimated proved
reserves of 55 million barrels of oil. Devon's share of production from the
properties was about 20,000 barrels of oil per day.
Estimated proved reserves and production attributable to Devon's African
divestiture properties are accounted for as discontinued operations. In
accordance with accounting for discontinued operations, proved reserves in
Africa were not included in Devon's companywide proved reserves at December
31, 2007. Likewise, oil and gas production from Africa is not included in
Devon's companywide production volumes.
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.
For further information:
For further information: Investors, Zack Hager, +1-405-552-4526, or
Media, Chip Minty, +1-405-228-8647, both of Devon Energy Corporation Web