Further divesting its international and offshore portfolio to focus on onshore North America plays, Devon Energy Corp., Oklahoma City, (NYSE: DVN) has agreed to sell its producing Panyu Field offshore China to China National Offshore Oil Corp., or CNOOC, for $515 million.

The after-tax proceeds amount to approximately $370 million.

Production from the Panyu Field averaged approximately 12,000 bbl. of oil per day in 2009.

The divestiture process is ongoing for exploration assets in China and Angola, as well as other minor international assets. Devon expects all divestitures to be completed by year-end.

Analysts at Tudor, Pickering, Holt & Co. Securities Inc. report the deal involved 16 million BOE in proved reserves, and that Devon still has some 22,000 bbl. equivalent of proved reserves remaining to divest.

A subsidiary of Dallas-based Trans­Atlantic Petroleum Ltd. (Amex: TAT; Toronto Venture: TNP) intends to acquire Turkish exploration and production operations, including inventory and a drilling rig, from two subsidiaries of Zorlu Enerji Elektrik Uretim AS.

Specifically, TransAtlantic Worldwide Ltd. plants to acquired Amity Oil International Pty. Ltd. and Zorlu Petrogas Petrol Gaz ve Petrokimya Urunleri Insaat Sanayi ve Ticaret AS, both wholly owned subsidiaries of Zorlu, in a deal valued at some US$100 million.

With the acquisition of the two companies, TransAtlantic will obtain interests ranging from 50% to 100% in 18 exploration licenses and one production lease, with acreage comprising 1.3 million acres (1 million net acres) and 730,000 gross and net acres in the Thrace Basin and central Turkey, respectively.

With an estimated 10 million cu. ft. per day of gas awaiting connection to a pipeline, the licenses are currently producing an average of approximately 7 million cu. ft. of gas per day (net to Amity and Petrogas’ interest).

TransAtlantic chairman N. Malone Mitchell says, “The acquisition is an important development for us. We gain a strategic partner in Zorlu, one of the leading companies in Turkey. We also build on our presence in the Thrace Basin, obtaining acreage prospective for the shallow gas targets we have developed in Edirne, as well as deeper conventional and unconventional gas.”

Fracture-stimulation equipment will be mobilized into the Thrace Basin this summer. In conjunction with the acquisition, Zorlu retains the right to purchase 100% of the gas developed on the acquired licenses, with the option to either receive 5% of net profits in new wells drilled on the licenses, or a 25% participatory working interest on a well-by-well basis.

Coal-producer Consol Energy Inc., Pittsburgh, (NYSE: CNX) has closed its acquisition of the Appalachian E&P business of energy generator and transmission conglomerate Dominion Resources Inc., Richmond, Va., (NYSE: D) for $3.5 billion in cash.

Dominion’s E&P business includes 500,000 Marcellus shale acres in Pennsylvania and West Virginia, which triples Consol’s position in the play to 750,000 net acres.

The assets consist of a total 1.46 million oil and gas acres with more than 9,000 producing wells that are expected to produce more than 41 billion cu. ft. of gas equivalent in 2010. Proved reserves are 1.1 trillion cu. ft. of gas and potential resources are 41 trillion. Consol raised $2.75 billion in a senior notes offering and $1.83 billion via a public offering to finance the deal.

BofA Merrill Lynch was lead financial advisor to Consol and Wachtell, Lipton, Rosen & Katz and Akin Gump Strauss Hauer & Feld LLP were legal counsel. Stifel, Nicolaus & Co. Inc. was also a financial advisor and provided a fairness opinion to Consol.

Barclays Capital Inc. was financial advisor to Dominion. Baker Botts LLP was Dominion’s legal adviser.

• W&T Offshore Inc., Houston, (NYSE:WTI) has closed its acquisition of three federal offshore blocks on the Gulf of Mexico shelf from Total E&P USA Inc., a subsidiary of Total SA (NYSE: TOT), for $150 million.
The assets include a 100% working interest in Mississippi Canyon Block 243, also known as Matterhorn, and a 64% working interest in Viosca Knoll blocks 822 and 823, known as Virgo. Matterhorn Field, in 2,800 feet of water, started producing in 2003. Total production at the time of acquisition was 5,664 BOE per day (67% oil and gas liquids). Proved reserves are 11.6 million BOE.

• Since the end of first-quarter 2010, Oklahoma City-based Chesapeake Energy Corp. (NYSE: CHK) has reported the sale of leasehold and producing assets for approximately $750 million.
The transactions include $400 million of noncore producing assets in the Permian and Appalachian Basins, with production totaling 30 million cu. ft. equivalent per day and proved reserves of some 180 billion cu. ft. equivalent, as well as certain noncore Haynesville shale leasehold in East Texas.
Chesapeake expected to close its seventh volumetric production payment (VPP) transaction in May on certain operated, long-lived oil and liquids-rich producing assets in the Permian Basin for approximately $350 million, or $8.75 per million cu. ft. equivalent of proved reserves.
The assets in the pending seventh VPP include estimated proved reserves of 40 billion cu. ft. equivalent and net production currently averaging 6 million cu. ft. and 2,200 bbl. per day.

Gulfport Energy Corp., Oklahoma City, (Nasdaq: GPOR) plans to acquire assets in the Niobrara shale of northwestern Colorado and the Permian Basin of West Texas from an undisclosed seller for a total $15.35 million.

In the Niobrara deal, Gulfport plans to acquire a 50% interest in 48,935 gross (24,468 net) acres and certain producing properties in the Colorado Niobrara shale for approximately $7.75 million. Gulfport will be the operator.

The acquired properties are on the structural uplift between the Piceance and Sand Wash basins in Moffat and Rio Blanco counties. Gulfport estimates net proved reserves are approximately 900,000 bbl. of oil. Production is approximately 45 net (114 gross) bbl. of oil per day from three producing wells with gross estimated ultimate recoveries per well ranging from 84,000 to 143,000 bbl. of oil.

The deal is expected to close in mid-June with an effective date of April 1.

Gulfport chief executive Jim Palm says, “The pending Niobrara acquisition is an excellent addition to Gulfport’s oil focused asset portfolio, which will provide us with a scalable oil resource in a rapidly emerging play. Gulfport will be the operator of 100% of the acquired Niobrara properties and believes it has the opportunity to enhance their value by introducing modern hydraulic fracture treatment technology and by potentially applying horizontal drilling techniques.”

In the Permian deal, Gulfport plans acquire a 50% interest in 4,979 gross (2,489 net) undeveloped acres in the West Texas Permian Basin for approximately $7.6 million.

This deal will boost Gulfport’s total acreage position in the Permian to 13,101 net acres and represent the addition of 124 gross potential drilling locations on 40-acre units.

Additional news

St. Mary Land & Exploration Co., Denver, (NYSE: SM) has entered into a joint-venture agreement with an undisclosed partner to develop a portion of its Haynesville shale position in East Texas in a drill-to-earn commitment.

The agreement covers 32,000 net acres involving the Haynesville and Bossier intervals only. The partner will earn 95% of St. Mary’s interest in approximately 8,400 net acres in Shelby County and 5% of St. Mary’s interest in approximately 23,400 net acres in Shelby and San Augustine counties.

The drilling carry is estimated to be approximately $87 million in drilling and completion costs for horizontal wells planned for the South Block in Shelby and San Augustine counties. St. Mary will be the operator of wells drilled on the South Block.

Once St. Mary has completed the expenditure of the carry amount, the two parties will share all costs on the affected lands, according to ownership interests.

St. Mary president and chief executive Tony Best says, “The Haynesville agreement we are announcing today allows St. Mary the opportunity to test a significant portion of its East Texas Haynesville position with minimal capital investment. It also allows us to deploy more capital in the Eagle Ford shale program while not increasing our total capital investment budget for the year.”