Devon Sells Gabon Assets for $205.5 Million
Devon Energy has agreed to sell its oil and gas business located offshore Gabon to Oranje-Nassau Energie B.V., a subsidiary of Oranje-Nassau Groep B.V. The purchase price is $205.5 million. Devon expects to incur no taxes on the transaction.
The divestiture assets in Gabon include an interest in the Kowe block, currently producing approximately 3,750 barrels of oil per day, net to Devon's interest. Also included are Devon's interest in the Agali exploration block and an option to earn an interest in the Gryphon Marin exploration block.
Completion of the transaction is subject to approval by the Gabonese government. Closing is anticipated by year-end 2007.
"The properties in Gabon are a part of the West African divestiture package we announced early this year," said John Richels, Devon's president. "We received bids for various combinations of the assets, and are very pleased to have reached an agreement on Gabon with Oranje-Nassau. Negotiations are also under way with potential buyers of the other properties in the West African divestiture package. We now expect to complete the balance of the transactions during the first half of 2008."
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