Devon's Eagle Ford acquisition of GeoSouthern Energy's assets in the play is on track to close by the end of the first-quarter of 2014.
The company announced the acquisition of GeoSouthern Energy’s assets in the Eagle Ford oil play in November.
The acquired Eagle Ford acreage includes 82,000 net acres located in DeWitt and Lavaca counties. Devon expects to almost triple production from 53,000 boe/d at the time of the deal to ~140,000 boe/d over the next several years.
Devon Eagle Ford Production Estimates
Devon predicts production will grow at a compound annual growth rate of 25% over the next several years, reaching peak production of ~140,000 boe/d. I suspect we'll see much more than 25% growth in the first few years.
According to the company, the Eagle Ford development program in 2014 will be self-funding and is expected to start generating free cash flow beginning in 2015. Risked recoverable resources in the Eagle Ford are estimated at 400 million boe, of which more than 60% are proved reserves.
Devon Fourth Quarter 2013 U.S. Production
- Natural Gas - 1.9 Bcf/d
- Oil - 85,300 bd
- NGL's - 122,400 b/d
Read more at devonenergy.com