Devon Energy buys Eagle Ford assets to secure oil production growth
Oklahoma City-based energy company Devon Energy Corporation has announced the purchase of 82,000 net acres in the Eagle Ford Shale from GeoSouthern Energy. Confirmation of the deal comes three months after the initial agreement between the two companies was reported.
The site is located in DeWitt and Lavaca counties in Texas and makes up a significant part of Devon's plans to invest about $1.1 billion in the Eagle Ford play and to drill more than 200 wells. Devon expects its net production in the play to come in at an average of between 70,000 and 80,000 barrels of oil equivalent per day over the remaining months of 2014. Since the vast majority of Devon's assets at the Eagle Ford play are derisked, growth is expected to continue over the years to come, the company said.
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John Richels, president and chief executive officer of Devon, commented that the latest acquisition was just one of several "bold steps" taken by the company recently in its efforts to expand its portfolio and increase profitability for the business and for its shareholders.
The company recently reported net earnings of $207 million for the final quarter of 2013, or $0.51 per common share. By comparison, figures reported for the final quarter of the previous year revealed a net loss of $357 million, the company website shows.