Devon Energy Corporation has reached a definitive agreement to acquire GeoSouthern Energy's assets in the Eagle Ford oil play for $6 billion in cash. The acquired assets include current production of 53,000 barrels of oil equivalent (BOE) per day and 82,000 net acres with at least 1,200 undrilled locations. The risked recoverable resource is estimated at 400 million barrels of oil equivalent, the majority of which is proved reserves.
'The addition of these assets leverages our core competencies'
'With this transaction, we have secured a premier acreage position in the very best part of the world-class Eagle Ford oil play. This acquisition enhances our already strong North American portfolio by adding another low-risk, light oil asset that provides outstanding well economics and self-funded growth,' said John Richels, Devon's president and chief executive officer. 'Furthermore, this transaction is expected to be immediately accretive to virtually every metric, including cash flow per debt-adjusted share.'