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Devon Selling Egyptian Assets to Focus on North America

Oklahoma City-based independent Devon Energy Corp. is selling its oil and natural gas assets in Egypt and is terminating all of its operations there. The assets, which Devon obtained when it purchased Ocean Energy in 2003, will help the producer focus more of its exploration efforts in North America.

The company's production from Egypt is currently 5,000 boe/d, and the operations represent less than 1% of Devon's company-wide production and proved reserves. No estimated sales price was disclosed.

"Our decision to exit Egypt is primarily a matter of focus," said Stephen J. Hadden, senior vice president, exploration and production. "Devon's strategy continues to be to concentrate our resources in areas that can provide meaningful future growth in company-wide production and value. Although we have established a solid production base and hold a sizable suite of exploration opportunities in Egypt, we believe we can redeploy our resources from Egypt to projects in and outside North America that better fit our focused growth strategy.

"We also perceive the market conditions for international properties with exploration and exploitation potential as very favorable today. Our Egyptian business could provide a stand-alone entry point for a newcomer or complement the business of an operator already established in the region."

The sale process will be managed by Scotia Waterous. Data rooms for interested buyers will be opened in Houston and London in December. Acceptance of bids and completion of a purchase and sale agreement are anticipated in 1Q2007.

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