BUSINESS HEADLINES

Devon enters deal with Chinese corporation

By Brandon Evans | Published Saturday, January 7, 2012

Devon Energy announced Tuesday it entered into a $2.5 billion dollar deal with the Chinese corporation Sinopec on the exploration and extraction of oil and natural gas in five new plays scattered across the United States.

In return for the investment, Sinopec will receive one-third of all Devon’s interest in the venture plays, located in Louisiana, Ohio, Michigan, Wyoming and Oklahoma. Three are shale, like the Barnett, and the other two are limestone.

”They will not be getting any of the oil or natural gas, but they will get one-third of our returns for their investment,” said Devon Energy spokesperson Chip Minty.

Devon Energy is based in Oklahoma City, but has offices in Bridgeport. The company is one of the most active natural gas producers in the Barnett Shale. Minty said the new plays will not take away from development in current plays such as the Barnett Shale.

“These new plays will have no impact on our core areas,” Minty said. “The Barnett Shale is one of our core areas and will continue to be a core area.”

According to information provided by the Texas Railroad Commission, Wise County ranked fifth in the state in natural gas production at the end of last year. More than 19.1 billion cubic feet of natural gas was produced in Wise County in October. Wise only ranked behind Tarrant, Johnson, Pecos and Denton counties, respectively.

Leave a Reply. Note: As of March 24, 2011, all posted comments will include the users full name.

WCMessenger.com News and Blog Comment Guidelines

You must be logged in to post a comment.