Devon's Out Of Africa: Equatorial Guinea Assets Sold, Focus On GOM

Devon Energy will sell its oil and gas assets in Equatorial Guinea for $2.2 billion and shift its focus to nearly two-dozen hot Gulf of Mexico prospects, a company spokesperson told Rigzone.

"We are heavily engaged in exploration and production in the Gulf of Mexico," said Devon spokesperson Chip Minty. He added that Devon has 20 prospects left to drill in a "very exciting area" where the company has a "good deal of running room."

The company is seeking to move its assets and rededicate its efforts with a passion on the hot Gulf of Mexico prospects, said Minty.

In a press release issued by the company, after-tax proceeds from the sale are estimated to be $1.7 billion. While closing of the sale is expected to be on May 30, the effective date of the sale is Jan. 1, 2008.

Devon's principal Equatorial Guinea asset is a 23.75% participating interest in the Zafiro offshore oil field, which contains an estimated proved reserves of 55 million barrels of oil. Two undeveloped offshore blocks were also included in the transaction.

"This transaction represents the largest piece of our African divestiture program," said Devon President John Richels in the press release. "With aggregate pre-tax proceeds of the announced transactions surpassing three-billion dollars, the divestiture results have exceeded our expectations."

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