Cimarex Energy signed a purchase and sale agreement to acquire oil and gas assets in the Cana-Woodford shale play in Western Oklahoma for USD 497.4M in cash. Cimarex also entered into an agreement with Devon Energy to sell at closing a 50% interest in these assets for USD248.7M. The acquisition is expected to close before June 30, 2014.
Cimarex's share of the assets includes its estimate of proved developed reserves of approximately 140BCF equivalent (64% gas) at January 1, 2014, current production of approximately 35MMCF equivalent per day (63% gas) and 50,000 net acres, including 30,000 net acres in the Cana-Woodford area and oil-rich East Cana area. Approximately 65% of the proved developed reserves are associated with properties in which Cimarex already owns a working interest. Cimarex Chairman and CEO Tom Jorden said, "This acquisition is a perfect bolt-on for Cimarex as it consolidates working interest ownership in the Cana core infill development project area while adding exposure to other western Oklahoma oil and gas plays."