Working toward their targeted $2-3 billion non-core divestment goal to offset late 2015 strategic acquisitions, Devon signed a deal to sell its Mississippi Lime assets in northern Oklahoma for $200 million to White Star Petroleum, formerly known as American Energy Woodford. A member of the American Energy Partners family founded by the late Aubrey McClendon in 2013.
White Star announced the name change concurrent with the acquisition as part of a transition process to become fully independent of the AELP platform during Q2. It follows similar moves by AELP’s Appalachian and Permian units. The acquisition consists of a largely contiguous 210,000 net acres immediately offsetting White Star’s existing leasehold in central-northern Oklahoma. The acreage is primarily in Payne, Lincoln, Logan and Garfield counties and mostly HBP.
White Star is also getting 555 operated and non-op horizontal wells with Q1 net production of 12,800 boe/d (30% oil, 39% NGLs) from the Mississippi Lime and Woodford shale and YE15 proved reserves of 11 MMboe. Besides the upstream assets, Devon owns oil, gas and water gathering infrastructure in the area.
This divestiture follows with Devon's expected $2-3 billion in asset sales as outlined in their May 2016 investor relations presentation.