Kalnin Ventures announced that an affiliate of its investment vehicle BKV Oil & Gas Capital Partners, has entered into a Purchase and Sale Agreement to acquire Devon Energy’s assets in the Barnett shale. The expected closing date is in 2020, subject to customary closing conditions, and the overall transaction is worth $770 million.
The transaction with Devon includes over 320,000 gross acres and 4,200 producing wells, making BKV the largest natural gas producer in the Barnett shale. This acquisition marks the BKV’s seventh major transaction and first position in the Barnett Shale play. BKV has invested or committed over $1.3 billion since its formation in 2015.
BKV is financially backed by its sole investor, Banpu Pcl, a Thailand-based coal mining and power-generation company with total assets of approximately $8 billion.
Net production from the Barnett Shale properties averaged 597 million cubic feet equivalent per day in the third quarter of 2019. At year-end 2018, proved reserves associated with these properties amounted to approximately 4 trillion cubic feet equivalent.
“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,” said Christopher Kalnin, CEO of BKV. “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.”