Devon Energy Corp. could now potentially receive up to $60 million more for its Barnett Shale assets as part of amended deal terms, the company said in an April 14 release.

The Oklahoma City-based shale producer previously said it would sell its Barnett Shale assets for $770 million in an agreement announced in December. The sale, which would mark Devon exit from the Barnett, would complete the company’s transformation to focus only on high-return oil assets.

As part of the amended terms, Kalnin Ventures LLC, a gas-focused investment company backed by Thailand’s Banpu Pcl, agreed to pay up to $830 million for Devon’s Barnett assets. Payment is now comprised of a $570 million cash at closing plus contingent payments of up to $260 million based on future commodity prices.

Originally expected to be completed during the second quarter, the scheduled closing date for the transaction has also been extended to Dec. 31 from April 15.

The contingent payment period commences on Jan. 1, 2021 and has a term of four years. Contingent payments are earned and paid on an annual basis with upside participation beginning at either a $2.75 Henry Hub natural gas price or a $50 WTI oil price, according to the company release.

Devon initially entered the Barnett Shale through the 2002 acquisition of Mitchell Energy & Development Corp. for $3.5 billion in cash and stock, which also included the assumption of $400 million in debt. The original deal included 2.5 Tcfe of proved reserves plus midstream assets valued at $800 million to $1 billion.

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