Devon Energy Increases Share of Lower Tertiary Kaskida UnitDownload
OKLAHOMA CITY, April 22 /PRNewswire-FirstCall/ -- Devon Energy Corporation (NYSE: DVN) announced today that it has increased its ownership in the Kaskida Unit in the deepwater Gulf of Mexico. Kaskida is the site of a significant oil discovery. Devon exercised a preferential right to purchase its proportionate share of unit-partner Anadarko Petroleum's interest in Kaskida. By exercising its preferential right, Devon has purchased an additional 6.67 percent working interest in the Kaskida Unit, bringing the company's total working interest in Kaskida to 26.67 percent.
"We are pleased to have an opportunity to increase our ownership in the Kaskida discovery," said Stephen J. Hadden, senior vice president, exploration and production. "The Lower Tertiary trend is an important part of Devon's long-term exploration program, and we believe Kaskida is the largest of our four Lower Tertiary discoveries to date. We expect to begin producing oil from the Lower Tertiary trend in 2010 from our Cascade discovery."
The 51,800-acre Kaskida Unit covers nine blocks in the Keathley Canyon deepwater lease area of the Gulf of Mexico. The 2006 Kaskida discovery well encountered approximately 800 net feet of hydrocarbon-bearing sands.
Devon has established one of the largest lease positions in the Lower Tertiary trend with ownership in nearly 200 blocks. On these leases the company has currently identified an inventory of 20 exploratory drilling prospects.
In addition to Devon's 26.67 percent working interest, BP Exploration & Production Inc. has a 73.33 percent working interest in the Kaskida Unit. BP is the operator of the Kaskida Unit.
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, net feet of hydrocarbon-bearing sands, 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
CONTACT: Investors, Zack Hager, +1-405-552-4526, or Media, Chip Minty, +1-405-228-8647, both of Devon Energy Corporation