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DEVON ENERGY AND HONDO OIL & GAS SET $126.6 MILLION PURCHASE/SALE PRICE; STOCKHOLDER APPROVAL AND FINANCING OBTAINED

DEVON ENERGY AND HONDO OIL & GAS SET $126.6 MILLION PURCHASE/SALE PRICE;
 STOCKHOLDER APPROVAL AND FINANCING OBTAINED
 OKLAHOMA CITY, Okla., and ROSWELL, N.M., June 26 /PRNewswire/ -- Devon Energy Corp. (AMEX: DVN) and Hondo Oil & Gas Company (AMEX: HOG) today announced the purchase/sale price for substantially all of Hondo's U.S. oil and gas properties will be $126.6 million. Hondo expects to receive an additional $1.6 million from third parties that have exercised preferential rights to purchase certain of the Hondo properties.
 Closing is expected to occur July 1, 1992. The two companies had previously announced execution of a definitive contract for Devon to purchase the Hondo properties for $139.2 million, subject to adjustments through the closing date and certain conditions. The conditions included a shareholder vote for Hondo, and Devon obtaining financing.
 At a special meeting of Hondo shareholders yesterday, called for the purpose of approving the sale to Devon, 91 percent of the total Hondo shares outstanding were voted in favor of the sale to Devon.
 Simultaneously, Devon announced the commencement of a public offering of 8 million shares of common stock. The company has granted the underwriters an option to purchase up to an additional 1.2 million shares to cover over-allotments, if any. The price to the public is $10 per share. The offering is through a group of underwriters represented by the First Boston Corporation and Smith Barney, Harris Upham & Co. Incorporated. Excluding the over-allotment, the net proceeds of the offering will be $75.2 million and will be used to finance the purchase of the Hondo properties. The balance of the purchase price will be paid with bank debt. Devon has obtained the commitment of its bank consortium to finance the balance.
 This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration of qualification under the securities laws of any such state.
 Founded in 1969, Devon Energy is engaged in oil and natural gas property acquisitions, exploration and production activities and oil and gas remarketing. The company's common and preferred stocks are traded on the American Stock Exchange under the symbols DVN and DVN.Pr., respectively.
 BT Securities Corporation, a wholly owned subsidiary of Bankers Trust New York Corporation, acted as Hondo's financial advisor in the transaction.
 Hondo will continue to pursue international oil and gas opportunities and will use a portion of the proceeds from the sale to Devon for its confirmation/delineation program at the Opon Association Contract Area in Colombia, South America.
 -0- 6/26/92
 /CONTACT: Marian Moon of Devon Energy, 405-235-3611; or Ian Brownlow of Hondo, 505-625-8700/
 (DVN HOG) CO: Devon Energy Corp.; Hondo Oil & Gas Company ST: Oklahoma IN: OIL SU: TNM


TQ -- NY023 -- 4163 06/26/92 11:06 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Jun 26, 1992
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