There were two interesting comments made during the Devon conference call today:
David Hager, Executive V.P. of E&P - "While it's in the very early stages of the evaluation of our position, we
are very encouraged that the Cline Shale with be a highly economic oil play."
John Richels, CEO - "Current production is less than 500 bod that we'd be conveying." This is regarding to current production on the JV acreage.
It appears that the lands conveyed to Sumitomo are basically undeveloped and they paid $7,200/acre for undeveloped Cline Shale land. A portion of Devon's land is adjacent to Lynden Energy Corp.'s Mitchell Ranch and that may help explain today's runup in Lynden's stock price.