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Devon marks progress in North American plays

By OGJ editors
HOUSTON, Nov. 3
-- Devon Energy Corp., Oklahoma City, drilled 407 wells in North American plays in the quarter ended Sept. 30 with an overall 99% success rate.

The company is running 17 operated rigs in the Permian basin and holds nearly 1 million net acres in the Avalon shale, Bone Spring, Wolfberry, and several other plays. The company’s production from the basin rose to 44,000 b/d of oil, condensate, and natural gas liquids in the quarter, up 18% from the year-ago quarter.

Devon drilled three horizontal wells in the quarter in the Texas Panhandle Granite Wash play that combined to average 4,290 boe/d, including 605 b/d of oil and 1,450 b/d of natural gas liquids. Average net working interest is 65%.

The company hiked North Texas Barnett shale net production 8% to a record 1.2 bcfd of gas equivalent, including 40,100 b/d of liquids.

The western Oklahoma Cana-Woodford shale averaged a record 117 MMcfed, a 122% increase. The company plans to start up its 200 MMcfd Cana gas processing plant near Calumet in Canadian County by the end of 2010. Capacity is expandable to 600 MMcfd.

In Canada, net production from Devon’s Jackfish oil sands project 200 miles northeast of Edmonton, Alta., averaged 21,300 b/d in the quarter. Jackfish was taken offline for scheduled plant maintenance in the last 3 weeks of the quarter and resumed operations Sept. 30.

Construction of the second Jackfish project is 90% complete. Devon will begin injecting steam at Jackfish 2 in the 2011 second quarter. First production is expected by the end of next year.

Devon sanctioned Jackfish 3 and filed a regulatory application in the quarter. Construction could start by the end of 2011. Start-up is targeted for 2015.


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