Devon Energy to Buy GeoSouthern’s Eagle Ford Assets for $6BBy...

Devon Energy to Buy GeoSouthern’s Eagle Ford Assets for $6B
By Matthew RoccoPublished November 20, 2013FOXBusiness

REUTERS
Devon Energy (DVN) announced a deal to buy closely held GeoSouthern Energy’s Eagle Ford assets for $6 billion in cash, boosting the oil and gas producer’s exposure to the shale oil boom.

The Eagle Ford shale play in southern Texas has quickly surpassed production at North Dakota’s Bakken, where the use of hydraulic fracturing and horizontal drilling first became prominent. Devon was the first company to combine the technologies.

According to the Energy Information Administration, Eagle Ford production hit one million barrels a day in August.

Devon, one of the largest independent exploration and production companies in the U.S., helped pioneer drilling for natural gas. The GeoSouthern deal, the largest domestic oil and gas transaction this year, puts Devon in a position to pump more crude oil.

The assets currently produce 53,000 barrels of oil equivalent and include 82,000 net acres with at least 1,200 undrilled locations.

The risked recoverable resource is estimated at 400 million barrels of oil equivalent. Oklahoma City-based Devon said the majority is proved reserves.