Devon Energy Corp. has reached a definitive agreement to acquire GeoSouthern Energy’s assets in the Eagle Ford oil play for $6 billion. The acquired assets include current production of 53,000 Boe/d and 82,000 net acres with at least 1,200 undrilled locations. The risked recoverable resource is estimated at 400 MMBoe, the majority of which is proved reserves.
The acquired Eagle Ford acreage is located in DeWitt and Lavaca counties in Texas and is largely contiguous, with most of the position held by production. The acreage position is located in the best part of the play, as evidenced by the highest average initial production rates in the entire play and average estimated ultimate recoveries in DeWitt County exceeding 800,000 Boe per well.
The majority of the acquired acreage is located in DeWitt County and is de-risked, with at least one producing well in each drilling unit. The acquired assets are expected to grow at a compound annual growth rate of 25% over the next several years, reaching a peak production rate of approximately 140,000 Boe/d.