Devon and Chevron exchange assets

Devon Energy and Chevron have completed an asset exchange whereby Devon transferred 14.2 million shares of Chevron common stock back to Chevron and Devon received Chevron’s interest in the Drunkard’s Wash field as well as $280 million in cash.

Devon has held shares in Chevron since Devon bought PennzEnergy in 1999. In August, Devon retired exchangeable debentures originally issued by PennzEnergy that were associated with the Chevron shares. After retiring the exchangeable debentures, Devon was able to enter into this exchange transaction with Chevron. In the exchange, Devon acquired a 44% working interest in the Drunkard's Wash field. The field is about 51,000 net acres with current net production of about 40 million cubic feet of natural gas equivalent per day.
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