OKLAHOMA CITY, Oct. 6 /PRNewswire-FirstCall/ -- Devon Energy
Corporation (NYSE: DVN) announced today that it has restored approximately
30,000 oil-equivalent barrels (Boe) per day of offshore oil and natural gas
production in the Gulf of Mexico. Devon was producing approximately 50,000
Boe per day from its Gulf of Mexico properties prior to suspending
production in preparation for Hurricanes Gustav and Ike.
Devon expects to restore approximately 5,000 Boe per day of additional
offshore production during the fourth quarter of 2008 as repairs are made
to production facilities and transportation systems.
As previously announced, Hurricane Ike toppled two of Devon's platforms
in the Eugene Island area. As a result, offshore production of about 1,200
Boe per day will be curtailed indefinitely. Devon's remaining Gulf of
Mexico production, about half of which is oil and half of which is natural
gas, is expected to be restored in 2009 as third-party facilities are
repaired.
Onshore, approximately 600,000 Boe of additional U.S. oil and gas
production was curtailed in the third quarter as a result of Hurricane Ike.
The curtailed onshore production has been restored.
Revised 2008 Production Estimates
Devon also revised its third-quarter and fourth-quarter 2008 oil and
gas production forecasts. The revised quarterly forecasts reflect
weather-related production curtailments and operational down time at the
ACG field in Azerbaijan. Transportation interruptions and mechanical down
time at the offshore Azeri platforms at ACG have required the operator to
reduce production from the field pending repairs.
Devon previously forecast company-wide production for the third quarter
of 2008 at approximately 61 million Boe. The company now expects
third-quarter 2008 company-wide production to be approximately 59 million
Boe. About two-thirds of the two million Boe reduction to third-quarter
volumes is attributable to the U.S. hurricanes and to typhoons in the South
China Sea. The weather-related reduced volumes are roughly 40 percent oil
and 60 percent natural gas. The remaining one-third of the third-quarter
forecast reduction is attributable to the ACG field, which produces only
oil.
In the fourth quarter of 2008, Devon expects to produce between 61
million and 62 million Boe, depending upon the timing of repairs. This
compares with a previous company-wide forecast of 64 million Boe. About
two-thirds of the reduction to the fourth-quarter forecast is attributable
to curtailments caused by the U.S. hurricanes. The hurricane-related
reduced volumes in the fourth quarter are roughly 50 percent oil and 50
percent natural gas. The remaining one-third of the fourth-quarter forecast
reduction is attributable to expected down time at ACG.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is the
largest U.S.-based independent oil and gas producer 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 the 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. These statements are
based on certain assumptions made by the company based on its experience
and perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of the
company.
SOURCE Devon Energy
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Related links:
http://www.devonenergy.com
http://www.prnewswire.com/comp/118040.html/
CONTACT:
Investor Contact, Zack Hager,
+1-405-552-4526, or Media Contact, Chip Minty, +1-405-228-8647,
both of Devon Energy Corporation
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