OilVoice - Maersk Oil Completes Purchase of Jack Lower Tertiary Project From Devon Energy

Maersk Oil Completes Purchase of Jack Lower Tertiary Project From Devon Energy

Wednesday, February 10, 2010

Devon Energy Corporation announces that Maersk Oil has purchased Devon's 25-percent working interest in the Jack Lower Tertiary development project in the Gulf of Mexico. In December 2009, Devon announced an agreement with Maersk Oil to purchase Devon's interests in three Lower Tertiary projects. Subsequently, other working interest owners in the St. Malo and Cascade projects exercised preferential rights to purchase Devon's interests.

Devon confirmed that the aggregate purchase price of its interests in the Jack, St. Malo and Cascade Lower Tertiary projects remains $1.3 billion. The company estimates its after-tax proceeds from the combined transactions at approximately $1.1 billion. The effective date of the sales is January 1, 2010.

Closings of the St. Malo and Cascade transactions are expected to occur by the end of March 2010. The transactions are subject to customary closing conditions and regulatory approvals.

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