By OGJ editors
HOUSTON, July 26 -- Devon Energy Corp., Oklahoma City, plans to drill more than 800 wells during the next 4 years on Iron River leases it has acquired from ExxonMobil Canada Energy in western Canada. About 70 locations are ready to drill.
"We can generally drill year-round in the Lloydminster area, and we plan to have four or five rigs running at Iron River in the third quarter of 2005," said Stephen J. Hadden, Devon's senior vice-president, exploration and production.
Drilling on the largely undeveloped properties is expected to add 700,000 boe to Devon's 2005 production, and the independent expects to boost its area production from less than 3,000 b/d of oil to 30,000 b/d by 2010.
The newly acquired leases—208 net sections of heavy oil leases and 51 net sections of conventional oil and gas leases, 120 miles northeast of Edmonton, Alta.—encompass 165,000 net acres in which Devon now holds an average 96% working interest. Devon purchased the properties for about $200 million (US).
Iron River is adjacent to Devon's Manatokan field, which produces 7,000 b/d of oil from about 300 wells. Devon said it believes Manatokan to be "a direct analogy to Iron River in geology, reservoir characteristics, oil quality, and operations."