Quest will receive approximately 330 producing wells, some 200 miles of gathering pipelines and interests in approximately 375,000 leasehold acres. As of December 31, 2002, Devon's Cherokee coalbed methane operations included estimated proved reserves of approximately 109 billion cubic feet of natural gas, of which 58 percent were classified as proved producing. The wells currently produce approximately 20 million cubic feet of gas per day. Devon owns a 100% working interest in these properties.
Devon will continue to own and operate 41,000 acres in the Arkoma basin in central Oklahoma that are not being conveyed to the purchaser. This acreage produces from a conventional formation and also holds potential for coalbed methane production.
The transaction is subject to regulatory approvals, purchaser due diligence and other customary conditions to closing. The sale price is subject to typical post-closing adjustments. Should the transaction fail to close after all closing conditions are satisfied, Devon is entitled to retain a $5 million earnest money deposit.
Most Popular Articles