Devon Energy Reports Impact of Hurricane Ivan

Devon Energy reported the estimated impact of Hurricane Ivan to the company's oil and gas production. Devon estimates that its third quarter 2004 production will be reduced by 650,000 to 750,000 barrels of oil equivalent (Boe) as a result of the storm. However, despite this reduction, Devon estimates that its third quarter 2004 production will be between 61.5 and 62.5 million Boe, which is in line with previous guidance.

Portions of the company's offshore Gulf of Mexico producing operations were suspended beginning September 13, 2004. Production from Devon's offshore properties west of the South Pass and Main Pass areas has been restored. Production facilities in the Main Pass 153 and 175 areas and in the South Pass 65 area sustained some storm damage. However, there were no injuries or spills associated with Devon's operations. Resumption of production from properties in the South Pass and Main Pass areas is dependent upon third-party repairs to pipelines and production receiving stations.

Currently, 27,000 Boe per day remains shut-in. Approximately 10,000 Boe per day is expected to return to production over the next two days. Repairs to infrastructure not operated by Devon could delay the return to production of the remaining 17,000 Boe per day for up to two months.

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