Devon Energy Announces Preliminary Results of Pre-Salt Well in Brazil

Download

OKLAHOMA CITY, Sept. 30 /PRNewswire-FirstCall/ -- Devon Energy Corporation (NYSE: DVN) today announced the preliminary results of an exploratory pre-salt well in the Campos Basin offshore Brazil. The 1-APL-1-ESS exploratory well on the Wahoo prospect is located on block BM-C-30 in approximately 4,650 feet of water.

The Wahoo well is currently drilling at approximately 18,600 feet. Preliminary results indicate the well encountered at least 150 feet of potential net oil pay. The partners plan to conduct additional evaluations of the well when it reaches its total targeted depth of approximately 20,000 feet. A drillstem test may be conducted at a later date.

"We are encouraged by what we have seen so far in the Wahoo well and look forward to the results of additional testing and evaluation," said Stephen J. Hadden, senior vice president of exploration and production. "Brazil has been the site of some of the most promising recent deepwater oil discoveries in the world. Devon has an active exploration program under way in Brazil with other very attractive prospects nearing the drilling stage."

Devon has a 25 percent working interest in block BM-C-30. Anadarko Petroleo Limitada, a wholly owned subsidiary of Anadarko, holds a 30-percent working interest and is the operator of BM-C-30. EnCana Brasil Petroleo Limitada (now owned by Bharat Petroleum Corporation Ltd., and Videocon Industries Limited) holds a 25-percent working interest and SK do Brazil Ltda., holds the remaining 20-percent working interest.

Block BM-C-30 is one of nine offshore exploratory blocks in Brazil in which Devon has interests. The Deepwater Discovery drillship, currently under long-term contract with Devon, is expected to arrive in Brazil and begin a drilling campaign in January 2009. Devon expects to participate in nine additional deepwater exploratory wells in Brazil in the next two years, including up to five pre-salt targets. In mid 2009, Devon will drill a pre-salt exploratory well on block BM-C-32, located approximately 16 miles north of the 1-APL-1-ESS well and 11 miles southeast of Petrobras' Jubarte Field. Anadarko and SK are also partners in block BM-C-32.

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.

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. This release may contain certain terms, such as resource potential, reserve potential, probable reserves, possible reserves and exploration target size. The SEC guidelines strictly prohibit us from including these terms in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K, File No. 001-32318, available from us at Devon Energy Corporation, Attn. Investor Relations, 20 North Broadway, Oklahoma City, OK 73102. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

SOURCE Devon Energy Corporation