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Shale play Devon Energy $DVN who is reporting second quarter earnings after the market close Tuesday announced they are selling Eagle Ford Assets in Lavaca County, Texas to Penn Virginia for $205 Million.  Devon Energy reported they have entered into an agreement to sell its Lavaca County, Texas assets in the Eagle Ford Shale to Penn Virginia as part of a $1 billion divestiture program.

Penn Virginia is paying $205 million for the 19,600 acre position. With this deal included, Anadarko has entered into $340 million in divestment agreements this year. The deal is set to close by September 30, 2017. 

Penn Virginia is funding the cash deal through $150 million in new committed debt financing and with borrowings under their credit facility. Additionally, the purchase price will likely be adjusted downwards by $15 million to reflect net cash flows from the effective date to closing.

Production from the Lavaca sale includes 4 Mboe/d (60% oil) with field level annual cash flows of $30 million. Proved reserves on the property are less than 10 Mmboe as of December 31, 2016.

Source: Criterion Research, Devon

From The Traders Community News Desk

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