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8 Pages

Sumitomo acquires a 30% interest in Devon Energy's Cline Shale and Wolfcamp Shale assets


Sumitomo acquires a 30% interest in Devon Energy's Cline Shale and Wolfcamp Shale assets

Report summary

Sumitomo has entered into an agreement with Devon Energy to acquire a 30% working interest in Devon's Wolfcamp and Cline shale acreage in the Permian Basin. The nominal consideration of the deal is US$1.365 billion, making this the largest transaction in the emerging Wolfcamp Shale to date.The Permian has always been a major oil producing Basin in the US, and as such, it has become the focus of operators as they abandon gas plays in a frantic flight to oil. The emerging Wolfcamp and ...

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This report includes 1 file(s)

  • Sumitomo acquires a 30% interest in Devon Energy's Cline Shale and Wolfcamp Shale assets PDF - 1.08 MB 8 Pages, 5 Tables, 2 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Wolfcamp Shale
    • Cline Shale
  • Deal analysis
    • Modelling assumptions
    • Type wells
  • Upsides and risks
    • Improved well performance and increasing well inventory provide upside
    • Uncertain results and cost inflation increase risk
  • Strategic rationale
    • Sumitomo
    • Devon
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Wolfcamp and Cline shales in West Texas
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Wood Mackenzie modelling assumptions for Production and 2P Commercial Reserves
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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