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Cimarex Buys Cana-Woodford Shale Acreage For $497 Million

|Includes:QEP, Cimarex Energy Co. (XEC)

Cimarex Energy has signed an agreement with QEP Resources to acquire oil and gas assets located primarily in the Cana-Woodford shale play in western Oklahoma for $497 million.

Cimarex's share of the assets includes:

· 50,000 net acres, including 30,000 net acres in the Cana-Woodford area;

· Proved developed reserves, as of 1-Jan-2014, of 140 Bcfe (36% liquids);

· Production of approximately 35 MMcfe/d (37% liquids).

Approximately 65% of the proved developed reserves are associated with properties in which Cimarex already owns a working interest.

In a separate agreement, Cimarex has entered into an agreement with Devon Energy to sell 50% interest in these assets for $249 million.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: XEC, QEP