(Bloomberg) -- Devon Energy Corp. agreed to sell its Canadian business to Canadian Natural Resources Ltd. for C$3.8 billion ($2.8 billion) as the Oklahoma-based oil and gas producer increases its focus on the U.S.

The Canadian asset portfolio consists of heavy-oil assets principally located in Alberta, with net production averaging 113,000 oil-equivalent barrels in the first quarter, Devon said Wednesday. At the end of last year, proved reserves associated with these properties amounted to about 409 million barrels of oil.

“The sale of Canada is an important step in executing Devon’s transformation to a U.S. oil growth business,” Chief Executive Officer Dave Hager said in a statement.

The transaction is expected to close by the end of the second quarter, with proceeds to be used for debt reduction.

JPMorgan Securities LLC acted as lead financial adviser to Devon. Goldman Sachs Group Inc. also acted as a financial adviser.

To contact the reporter on this story: Amanda Jordan in London at ajordan11@bloomberg.net

To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Amanda Jordan, Helen Robertson

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