Devon Energy, DOW to jointly develop STACK acreage

Devon Energy Corp. and Dow will jointly develop a portion of Devon’s STACK acreage in central Oklahoma starting with the development of two drilling units in northern Canadian County where drilling operations are expected to begin mid-year 2020.

Under the agreement, Devon will monetize half of its working interest in 133 undrilled locations in exchange for a $100 million drilling carry over the next 4 years. The average working interest is estimated at 60% across a mix of standard and extended-reach lateral drilling locations. Devon will serve as operator and is responsible for capital allocation and project timing.

No changes in production targets or capital spending in 2020 are expected as a result of the agreement.

Devon will retain 100% of its production and cash flow from existing operations in the STACK play.