Devon Energy Announces Sale of Panyu Field in China

OKLAHOMA CITY, April 30 /PRNewswire-FirstCall/ -- Devon Energy Corporation (NYSE: DVN) today announced that it has agreed to sell its producing Panyu field located offshore China to China National Offshore Oil Corporation for $515 million, or approximately $370 million after tax. During 2009, Devon's production from the Panyu field was approximately 12 thousand barrels of oil per day.

"Since announcing our plans this past November to strategically reposition the company to focus on its world-class North American onshore assets, we have divested nearly $10 billion of Gulf of Mexico and international assets," said Larry Nichols, Devon's chairman and chief executive officer. "This translates into an estimated $7.9 billion in total after-tax proceeds, easily exceeding the top end of our initial expectations of $4.5 to $7.5 billion."

Completion of the transaction is subject to customary closing conditions and regulatory approvals. The company has now announced the sale of the majority of the divestiture assets. The divestiture process is ongoing for Devon's remaining exploration assets in China and Angola, as well as other minor international assets. Devon expects the closings of all divestitures to be completed prior to year-end. The company plans to provide updates to guidance for 2010 production, expenses and capital expenditures as the transactions are closed.

Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is a leading U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For additional information, visit www.devonenergy.com.

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements are those concerning strategic plans, expectations and objectives for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by Devon on its website or otherwise. Devon does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

SOURCE Devon Energy Corporation