Devon Energy has agreed to acquire GeoSouthern Energy's Eagle Ford assets for $6 billion in cash.
The deal includes 82,000 net Eagle Ford acres in DeWitt and Lavaca counties, with associated production of 53,000 boe/d.
Current production is 56% oil, 20% NGLs, and 24% natural gas.
The properties hold an estimated resource potential of 400 million boe.
Devon has an average 50% interest in the properties and a 38% net revenue interest.
“With this transaction, we have secured a premier acreage position in the very best part of the world-class Eagle Ford oil play. This acquisition enhances our already strong North American portfolio by adding another low-risk, light oil asset that provides outstanding well economics and self-funded growth.”
There is at least one producing well in each owned unit in DeWitt County and Devon expects EURs as high as 800,000 boe. The company estimates a drilling inventory of 1,200 locations and has a joint development agreement with BHP Billiton.
Devon expects annual growth of 25% from the assets for the next several years, with an ultimate peak of 140,000 boe/d.
The deal will be funded with cash on hand and borrowings.
Read the full press release at devonenergy.com