44% Stake in Utah Gas Field Bought by Devon

Devon Energy Corp, the biggest U.S. independent oil and natural-gas producer, has bought a 44 percent stake in the Drunkard's Wash coal bed natural-gas field in Utah from a unit of Chevron Corp.

Devon paid 14.2 million shares of Chevron stock and in return received Chevron's interest in the field and $280 million, the Oklahoma City-based company said in a statement.

The transaction gives Devon a stake in a field with about 51,000 net acres and net production of 40 million cubic feet of natural gas equivalent per day.

The swap also ends Devon's stake in Chevron after Devon's 1999 acquisition of PennzEnergy Co. for $2.29 billion.

Devon shares trade in the $80 range on the NYSE.


Author: Jo Amey