UPDATE 2-Devon sells gas assets to focus on oil production

Mon Jun 30, 2014 1:45pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Deal includes assets onshore Gulf Coast, Rockies, mid-continent

* Assets being sold produce 275 mmcfe gas per day (Adds details from statements, background)

June 30 (Reuters) - Devon Energy Corp said it would sell its remaining non-core gas-rich properties to peer Linn Energy LLC for $2.3 billion to focus on more lucrative oil assets and cut debt.

This is Linn's biggest deal since it bought Berry Petroleum Co in December through a holding company set up for acquisitions.

The asset sale by Devon includes about 900,000 net acres spread across the Rockies, onshore Gulf Coast and some mid-continent regions, including all or parts of Kansas, Oklahoma, Texas, Arkansas and Louisiana.

These assets produce 275 million cubic feet of gas equivalent per day, about 80 percent of which is natural gas. They contributed about 7 percent to Devon's total oil and gas output in the first quarter.

Devon and many other North American oil and gas producers have been selling off their natural gas holdings to focus on more profitable crude oil assets. Prices of natural have slumped after a shale boom in the United States.

Encana Corp, Canada's largest natural gas producer , said last week it would sell its Bighorn gas properties in Alberta, properties in Wyoming's Jonah natural gas field and about 90,000 net acres in east Texas.

Devon itself has raised more than $5 billion from the sale of non-core assets over the past few quarters.   Continued...