(Adds analyst comment, share price information and executive comment.)

HOUSTON -(Dow Jones)- Devon Energy Corp.'s (DVN) deal to sell off the bulk of its offshore and international assets to U.K. oil giant BP PLC (BP, BP.LN) for $7 billion will help it raise more money than the company expected from its asset divestiture program.

The agreement puts the Oklahoma City-based independent on track to becoming a high-growth company entirely focused on North America--and indicates that the market for oil and gas assets has come back in force after the period of uncertainty created by the recession.

"The goal line for Devon's repositioning is clearly in sight now," John Richels, president of Devon, said during a conference call with investors.

In November, Devon announced plans to sell off its offshore and international assets to concentrate on exploiting unconventional gas in the U.S. and Canada. Last month, it sold off its first set of assets, a set of stakes in three deep-water Gulf of Mexico discoveries for $1.3 billion.

The company initially estimated that the entire portfolio of offshore and international assets would fetch $4.5 billion to $7.5 billion after tax. Its remaining assets on the block are expected to generate another $1 billion to $1.4 billion in after-tax proceeds, bringing the total estimated after-tax proceeds from the asset portfolio to a $7.5 billion to $8.3 billion range, Richels said during the call.

The asset sale "should be received positively as the divestiture is both earlier than anticipated and is at a favorable price," analysts with the Houston-based energy investment bank Simmons & Co. wrote in a note to clients.

At the same time, Devon will pay BP $500 million for a 50% stake in BP's undeveloped Kirby oil sands project in Canada. Kirby is close to the Devon-operated Jackfish development, which started production in 2007.

Devon plans to use the money from its asset sales to ramp up oil and gas exploration activity, buy back shares and reduce debt.

Devon shares recently traded 1.19% higher at $72.54.

Copyright © 2009 Dow Jones Newswires