OKLAHOMA CITY, Aug. 15 /PRNewswire-FirstCall/ -- Devon Energy
Corporation (NYSE: DVN) today announced that it has increased its ownership
in a discovery in the deepwater Gulf of Mexico. On August 9, 2006, Devon
and its partner, Petrobras America Inc., completed the purchase of BHP
Billiton's working interest in the Cascade Unit. Devon increased its
working interest from 25 percent to 50 percent in the unit.
The Federal Minerals Management Service approved the Cascade Unit
Agreement and a Suspension of Production (SOP) for the unit on July 31,
2006. The 23,000-acre Cascade Unit covers Walker Ridge blocks 205, 206, 249
and 250. The SOP protects the unit from lease expiration and authorizes
commercial development of Cascade.
Cascade was the first of three discoveries to date by Devon in the
Gulf's emerging lower Tertiary trend. The 2002 Cascade discovery
encountered more than 450 net feet of pay and was followed by two
delineation wells in 2005. The two wells drilled in 2005 encountered 200
net feet and 500 net feet of pay, respectively.
Future plans for Cascade include drilling a fourth well as part of a
phased-development plan. Devon anticipates utilizing a floating production,
storage and offloading unit (FPSO). First production from two wells is
anticipated in late 2009.
"Our extensive knowledge of the lower Tertiary play, growing confidence
in the performance of the reservoir and our partnership with one of the
leading producers in deepwater developments encouraged us to increase our
share of Cascade and move the project ahead quickly," said Stephen J.
Hadden, senior vice president, exploration and production. "We plan to
fast-track development and see first production into an FPSO before the end
of the decade."
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration, production and property
acquisitions. Devon is one of the larger U.S.-based independent oil and gas
producers and is included in the S&P 500 Index. For additional information,
visit http://www.devonenergy.com .
This press release includes "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements are those
concerning strategic plans, expectations and objectives for future
operations. All statements, other than statements of historical facts,
included in this press release that address activities, events or
developments that the company expects, believes or anticipates will or may
occur in the future are forward- looking statements. Such statements are
subject to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the company. Statements regarding future
production and resource potential are subject to all of the risks and
uncertainties normally incident to the exploration for and development and
production of oil and gas. These risks include, but are not limited to,
inflation or lack of availability of goods and services, environmental
risks, drilling risks and regulatory changes. Investors are cautioned that
any such statements are not guarantees of future performance and that
actual results or developments may differ materially from those projected
in the forward-looking statements.
SOURCE Devon Energy Corporation
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Related links:
http://www.devonenergy.com
http://www.prnewswire.com/comp/118040.html /
CONTACT:
investors, Vince White, +1-405-552-4505, or
media, Brian Engel, +1-405-228-7750, both of Devon Energy
Corporation
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