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The fevered pace of merger and acquisition activity in the North American upstream oil and gas industry continues with the announcement last week of two multibillion-dollar deals.
Devon Energy Corp., Oklahoma City, said it will acquire Calgary-based Anderson Exploration Ltd. in a $4.6 billion deal that will give it the most North American oil and gas reserves of any independent, Devon said.
Meanwhile, Global Marine Inc., Houston, and Santa Fe International Corp., Dallas, said they plan to merge in a stock-for-stock transaction that will create the world's second largest offshore drilling contractor. Transocean Sedco Forex Inc., Houston, is the largest offshore drilling contractor.
This latest acquisition comes on the heels of Devon's Aug. 14 agreement to buy Houston-based Mitchell Energy & Development Corp. for $3.5 billion in cash and stock (OGJ, Aug. 20, 2001, p.37).
The Mitchell Energy acquisition by itself would make Devon the second largest US independent gas producer, after Anadarko Petroleum Corp., Houston. However, successful completion of both transactions will make Devon the largest independent producer of oil and natural gas in North America, Devon claimed.
Both transactions are expected to close by yearend. Neither deal is conditional upon the other.
Through the Anderson acquisition, Devon would get additional proved reserves estimated at 532 million boe, plus 8 million net undeveloped acres. That would increase Devon's total proved reserves to 2 billion boe, an increase of 35%. Devon's North American reserves would increase to 87% of the company's worldwide reserves, it said. …