Devon Energy Announces Closing of $1.4 Billion Joint Venture

  Devon Energy Announces Closing of $1.4 Billion Joint Venture

Business Wire

OKLAHOMA CITY -- September 27, 2012

Devon Energy Corporation (NYSE:DVN) today announced the closing of its
previously announced $1.4 billion joint venture agreement with Sumitomo
Corporation. The joint venture covers approximately 650,000 net acres in the
Cline Shale and the Midland-Wolfcamp Shale. Sumitomo will invest $1.4 billion
in exchange for 30 percent of Devon’s interest in these projects.

At closing, Sumitomo invested $410 million in cash, composed of the initial
cash contribution and Sumitomo’s share of costs since the effective date of
the transaction. The remaining $980 million will be invested in the form of a
drilling carry. The drilling carry will fund 70 percent of Devon’s capital
requirements, resulting in Sumitomo paying 79 percent of the overall drilling
and completion costs during the carry period. Devon will serve as operator and
expects the entire drilling carry to be realized by mid-2014.

“With the close of the Sumitomo transaction, we have now successfully entered
two exploration joint ventures during 2012, approaching $4 billion in value to
our company,” said John Richels, Devon’s president and chief executive
officer. “These arrangements significantly improve the capital efficiency of
our exploration programs which preserves cash flow for our deep inventory of
development projects.”

Devon Energy Corporation is an Oklahoma City-based independent energy company
engaged in oil and gas exploration and production. Devon is a leading
U.S.-based independent oil and gas producer and is included in the S&P 500
Index. For additional information, visit www.devonenergy.com.

This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements are those concerning
strategic plans, expectations and objectives for future operations. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
the company. These risks include, but are not limited to the volatility of
oil, natural gas and NGL prices; political, economic or public policy changes;
uncertainties inherent in estimating oil, natural gas and NGL reserves;
drilling risks; and environmental risks. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements. The forward-looking statements in this press release are made as
of the date of this press release, even if subsequently made available by
Devon on its website or otherwise. Devon does not undertake any obligation to
update the forward-looking statements as a result of new information, future
events or otherwise.

Contact:

Devon Energy Corporation
Investor Contacts
Scott Coody, 405-552-4735
or
Shea Snyder, 405-552-4782
or
Media Contact
Chip Minty, 405-228-8647
 
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