Cimarex Energy Co. (NYSE: XEC) has signed a purchase and sale agreement to acquire oil and gas assets primarily in the Cana-Woodford Shale play in Western Oklahoma for $497.4 million in cash. Simultaneously, Cimarex entered into an agreement with Devon Energy (NYSE: DVN) to sell at closing a 50% interest in these assets for $248.7 million. The acquisition is expected to close on or before June 30, 2014, and is subject to customary conditions and purchase price adjustments.

Denver-based Cimarex's share of the assets includes its estimate of proved developed reserves of approximately 140 billion cubic feet equivalent (64% gas) at January 1, 2014, current production of approximately 35 million cubic feet equivalent per day (63% gas) and 50,000 net acres, including 30,000 net acres in the Cana-Woodford area and oil-rich East Cana area. Approximately 65% of the proved developed reserves are associated with properties in which Cimarex already owns a working interest.

Cimarex Chairman and CEO, Tom Jorden, said, "This acquisition is a perfect bolt-on for Cimarex as it consolidates working interest ownership in the Cana core infill development project area while adding exposure to other western Oklahoma oil and gas plays."

The acquisition will be funded with bank debt.