Devon Energy has completed on its $830 million sale of its Barnett Shale assets in North Texas to a subsidiary of Banpu Kalnin Ventures, Kallanish Energy reports.
The deal marks Devon Energy’s exit from the Barnett Shale.
The deal was signed with BKV Barnett LLC. The transaction had been announced last December and was revised last April.
It includes more than 320,000 acres and 4,200 producing wells in the Barnett Shale.
Net production from the Barnett Shale assets averaged nearly 600 million cubic feet equivalent per day in the third quarter of 2019.
BKV paid $570 million in cash for the assets and agreed to contingent payments of up to $260 million, depending on the price of future commodities over the next four years.
The contingent payments are set to begin on Jan. 1, 2021.
Colorado-based BKV is backed by Banpu Pcl, a coal and energy company in Thailand.
BKV now has more than 345,000 net acres in Texas and Pennsylvania’s Marcellus Shale, operates more than 4,000 producing wells and has proven reserves in excess of 3.7 Tcfe.
It has become one of the largest natural gas companies in the United States, processing up to 700 million cubic feet per day of natural gas.
It is BKV’s first foray into the Barnett Shale and it also the company’s largest deal, to date.
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