With a premier STACK position, Devon sheds Eagle Ford assets

By Luke Geiver | August 01, 2017

Devon Energy, the Oklahoma City-based exploration and production company that believes it has an industry-leading position in the STACK play present in Oklahoma, is selling off assets located in the Texas Eagle Ford shale.

The company is selling $340 million worth of assets to help it strengthen its balance sheet and to help the company refocus on what it now believes are its core areas: the STACK and the Delaware Basin of West Texas.

The Eagle Ford assets will bring roughly 4,000 equivalent barrels of oil off of Devon’s production totals. In addition to its Eagle Ford sale, the company said it is also looking to move its Barnett Shale assets, a move the company expects to make sometime in the next year.

Earlier this month, Devon announced a record STACK-Meramec well was brought online at a 24-hour production rate of 6,000 barrels of oil equivalent per day. The company said it will now look to drill in multiple zones after participating in the majority of industry wells within the STACK. In the third quarter, Devon said it will spud the Showboat development project, a well pad that will include 25 wells targeting four different landing zones.

“Devon will continue to test development concepts including well density, multi-layer well stacking, intra-layer well staggering and further completion design improvements,” said Wade Hutchings, senior vice president of exploration and production. “This continual flow of data from our extensive position in the STACK will inform and improve our deep inventory of future multi-zone developments and the overall value of our coveted STACK resource.”