Oklahoma City-based Devon Energy exits the Barnett Shale, “birthplace of the shale revolution,” with the sale of its Barnett assets for $770 million to Denver-based private equity firm Kalnin Ventures, which is backed primarily by Thailand coal mining and power giant Banpu. The shale position will be operated by BKU Oil & Gas Capital Partners. The Houston Chronicle reported last week, “As the shale boom shifted from natural gas to crude oil and from east Texas to west Texas’ Permian Basin, the Barnett has seen its activity plunge from a peak of about 200 rigs in 2008 down to just one remaining active drilling rig today.”
The deal includes more than 320,000 gross acres and 4,200 producing wells. Net production from the properties averaged 597 million cubic feet equivalent per day in 2019Q3. At yearend 2018 proved reserves associated with the properties amounted to 4 trillion cubic feet equivalent. Dave Hager, Devon CEO, said, “Devon’s transformation to a U.S. oil growth business is now complete.” Devon will focus on four basins: Delaware, Eagle Ford, STACK and Powder River.
