Kalnin Ventures has signed an agreement to buy Devon Energy’s Barnett Shale assets for $770m. Credit: AirBeagle.

Devon Energy has signed a definitive agreement to sell all its assets in the Barnett Shale to an affiliate of Kalnin Ventures’ investment business BKV Oil & Gas Capital Partners for $770m.

Banpu Kalnin Ventures (BKV) is supported by its only investor Banpu, a Thailand-based coal mining and power-generation firm.

Devon Energy’s assets included in the sale are more than 320,000 gross acres and 4,200 producing wells.

The sale will enable BKV to become one of the largest natural gas producers in the Barnett Shale. It marks the seventh major transaction for BKV.

Banpu Kalnin Ventures CEO Christopher Kalnin said: “We are excited to announce this acquisition in the Barnett Shale, as this continues our strategy of PDP weighted cash flow yielding investments, where we can leverage technology to drive operational performance.

“Devon has done wonderful work in the Barnett Shale and we look forward to continuing that tradition, delivering high-quality returns for many years to come.”

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Barnett Shale properties’ net production is estimated at 597 million cubic feet equivalent per day (mcf/d) in the third quarter of this year.

Last year, proved reserves associated with these properties averaged approximately four trillion cubic feet (tcf) equivalent.

Subject to customary closing conditions, the transaction is expected to conclude in the second quarter of next year.

In a separate development, Devon Energy said that its board of directors has approved a new $1bn share-repurchase programme, bringing the total repurchase authorisation to $6bn.

In June 2018, Devon Energy signed an agreement to divest its stakes in EnLink Midstream Partners (ENLK) and EnLink Midstream (ENLC) for $3.125bn to reduce consolidated debt by 40%.