Devon's thermal heavy oil operations, located in the Athabasca oil sands in northeast Alberta, use an extraction process called steam-assisted gravity drainage (SAGD). Heat from a steam injection well liquifies very dense bitumen allowing it to migrate to a production well located beneath. Devon's first commercial SAGD facility was Jackfish, which achieved first production in 2007. Since that time, the company has increased its Jackfish operations to include Jackfish 2 and Jackfish 3. Devon has 100% working interest in all Jackfish properties. In March of 2010, Devon increased its oil sands presence by acquiring a 50 percent interest in BP's Pike leases. Devon will be the operator of the SAGD operations to be constructed on these lands.

Cold-flow heavy oil from multi-zone Cretaceous sandstones is the main focus of Devon's vertical drilling activities in the Lloydminster area. Concentrated in and around Iron River and Manatokan, the company has seen a steady rise in production from this area since the mid-2000s to a peak of over 40,000 Bod in 2009. While a consistent yearly vertical well program is currently maintaining production levels, new technologies such as horizontal wells and enhanced recovery techniques are being piloted to provide stable production in the future.


Heavy Oil Key Stats
Net acres: ≈ 780,000
Producing wells: ≈ 2,500
Production (Q3 net): 84 MBOED (95% liquids)
13% of “go-forward” company
Reserves (12/31/13): 584 MMBOE (99% liquids)
22% of "go-forward" company
2014e CapEx: $950 million
2014e drilling plans: ≈ 200
Operated rig count: 5