By OGJ editors
HOUSTON, Mar. 22 -- Oklahoma City-based Devon Energy Corp. said it signed a 5-year production-sharing contract covering Block 242, off Nigeria. Devon will operate the block with a 75% working interest. Nigerian Petroleum Development Co. Ltd. holds the remaining 25% working interest.
Block 242 lies in the Outer Toe Thrust structural trend of the western Nigerian deepwater area in water 4,000-10,000 ft deep. The lease covers about 575,000 acres and is on trend with the Ikija and Nsiku discoveries as well as Agabami field, now being developed.
Under terms of the PSA, Devon is committed to conduct a seismic survey and drill one exploratory well within 5 years; it then has an option to extend the contract for a second 5-year term.
The company plans to seek out joint venture partners for exploration and development on Block 242. Devon plans to begin 3D seismic acquisition on the block in first quarter 2005.
With the addition of Block 242, Devon holds ownership in 12 exploratory blocks in West Africa, nine of which are in deep water, the company said.