• Devon Energy Corp., Oklahoma City, (NYSE: DVN) has closed the acquisition of the Barnett Shale E&P properties in North Texas of privately held Chief Holdings LLC for $2.2 billion in cash, including assumed liabilities. The properties have estimated proved reserves of 617 billion cu. ft. of gas equivalent and leasehold totaling 169,000 net acres, and produce approximately 55 million cu. ft. of gas equivalent per day. The combined companies will have production of 645 billion cu. ft. of gas equivalent per day from 2,500 wells. An additional 31 wells are awaiting completion and pipeline connection which will add 30 million cu. ft. of gas equivalent per day. Devon plans to drill approximately 800 wells on the acreage during the next five years and produce in excess of 2 trillion cu. ft. of gas equivalent. Chief's assets include an estimated 103 million BOE in the Barnett Shale. Devon is the largest producer in the Barnett Shale, producing approximately 600 million cu. ft. equivalent per day from about 2,200 wells. Devon will have 30 rigs operating over a lease position of 721,000 net acres and expects company-wide production approaching 300 million BOE in 2009. Devon's successful bid was made jointly with midstream Dallas-based Crosstex Energy Services (Nasdaq: XTEX), which has acquired Chief's midstream assets for $480 million. Petrie Parkman & Co. advised Chief on the deal. • Repsol YPF SA, Madrid, (NYSE: REP) has acquired a 28% interest in the Shenzi Field in the Gulf of Mexico from BP Plc, London, (NYSE: BP) for US$2.15 billion. The assets have estimated reserves of 350- to 400 million BOE in the Southern Flank, with additional possible reserves of 100 million bbl. The field is expected to raise Repsol's Gulf of Mexico production to more than 35,000 bbl. of oil per day. The field is operated by BHP Billiton with a 44% interest and the third partner is Hess Corp. (28%). Commercial production is expected to begin mid-year 2009 at a gross rate of 100,000 bbl. of oil per day. Repsol YPF has had activity in the Gulf of Mexico since 2003, and currently holds a stake in 85 exploration blocks in Green Canyon, Atwater Valley, Alaminos Canyon and Mississippi Canyon, and is operator of 45 of them. The Gulf of Mexico is one of the core business areas for the company outside of Latin America. BP used some of the funds to acquire equity in Russian producer Rosneft, Moscow, in its IPO. • Helix Energy Solutions Group Inc., Houston, (Nasdaq: HELX) has acquired Dallas-based Remington Oil and Gas Corp. for approximately $1.4 billion in cash and stock, consisting of $27 in cash and 0.436 share of Helix common stock per Remington share. Remington has operations onshore and offshore the Gulf Coast. Its 2005 year-end proved reserves were 18.4 million bbl. of oil and 168.7 billion cu. ft. of gas for a cumulative 278.9 billion cu. ft. of gas equivalent (64.2% gas). Helix is an energy services company with worldwide services that include marginal field development, alternative development plans, field-life extension and abandonment. Helix chairman and chief executive Owen Kratz says, "The acquisition of Remington is the next key step in the evolution of (Helix's) unique production-contracting-based business model. Access to both deepwater hydrocarbon prospects and the available means to exploit them, as an operator, should lead to the continuation of our differentiated long-term earnings growth." To fund the cash portion of the merger, Helix entered an $835-million, 1% senior secured term B facility. Simmons & Co. International and Banc of America Securities were financial advisors to Helix for the cash portion of the acquisition. • Apache Corp., Houston, (NYSE, Nasdaq: APA) has acquired and is in the process of acquiring London-based BP's (NYSE: BP) remaining producing properties on the outer continental shelf of the Gulf of Mexico for US$845 million cash. Apache plans to finance the transaction with cash, and will acquire 13 producing fields, nine of which are operational, including the Grand Isle/West Delta Field that Apache will operate and have a 75% ownership. The total estimated proved reserves on the assets are 19.5 million bbl. of liquids and 148 billion cu. ft. of gas. Apache has also identified 49 drilling locations on the properties and an additional 4 million bbl. of liquids and 24 billion cu. ft. of gas in probable and possible reserves. The deal originally stated Apache would acquire 19 fields for $1.3 billion. A company spokesman said that preferential owners had acquired five of the fields for $379 million, representing 25% of the reserves. The acquired assets are expected to produce an average of 3,650 bbl. of liquids and 85 million cu. ft. of gas per day. Production and cash flow are expected to rise in 2007 as fields damaged in the 2005 hurricane season are brought back online. Apache will operate 97% of the assets. Raymond Plank, Apache founder and chairman, says, "This transaction is a good fit for the long-term strategies of both BP and Apache. Though we are much smaller than BP, we share its desire to focus capital and talented professionals on assets that will provide the maximum return for shareholders." After the transaction, Apache will have shelf assets that comprise 20% of its company-wide production. Goldman, Sachs & Co. was financial advisor to Apache for the transaction. • Coldren Resources LP, a subsidiary of privately held Coldren Oil & Gas Co., New Orleans, has closed the acquisition of Gulf of Mexico shelf assets from Noble Energy Inc., Houston, (NYSE: NBL) for $625 million. The properties are approximately 725,000 gross (423,000 net) leasehold acres involving 54 total fields, which contain 520 wellbores (132 operated) and 158 platforms (27 operated). The sale includes essentially all of Noble's assets on the Gulf shelf, with Noble retaining its interest in the Main Pass area.

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