Devon Energy Corp.

Oklahoma-based Devon Energy Corp. made an agreement last month to acquire 253,000 net acres in Wyoming’s Powder River Basin for $600 million.

According to a Dec. 7 press release from Devon Energy, the company secured the undeveloped leasehold at roughly $1,100 per acre, after deducting the value of current production at $30,000 per flowing barrel and $100 million of midstream infrastructure.

A spokesperson for Devon declined to name the parties involved in the transaction, but other sources said that some of the holdings in Converse County previously belonged to Oklahoma-based RKI Exploration, which it acquired in a 2014 exchange with Chesapeake Energy.

In August 2015, another Oklahoma-based company, WPX Energy, acquired RKI Exploration, but it’s unclear which Powder River Basin assets were transferred in that sale.

The acreage Devon acquired in December is located to the south of Devon’s legacy position in Campbell and northern Converse counties and includes production of 7,000 Boe per day, with approximately 85 percent oil. This leasehold resides in the core of the Powder River oil fairway and is most prospective for the Parkman, Turner and Teapot formations.

Since the acreage is continuous and connected, Devon’s acquisition allows for extended-reach horizontal drilling and the company has conservatively identified 500 development-ready locations with potential for as many as 2,700 wells. A Devon representative who was scheduled to speak to the Converse County Commission Tuesday cancelled that presentation.

The transaction more than doubles Devon’s holdings in the Powder River Basin to 470,000 net acres, with potential sites across multiple formations, bringing the companies total Wyoming holdings to more than 1.5 million acres.

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