Devon: To Drill Additional Jack Well in 2nd-Half '07

HOUSTON Feb.7, 2007 (Dow Jones Newswires)

Devon Energy Corp. (DVN) plans to add between 350 million and 370 million barrels of oil equivalent in reserves from exploration activities during 2007, two-thirds more than its estimated production, company executives said Wednesday.

"We're targeting drillbit reserve additions of somewhere between 350 and 370 million barrels of oil equivalent," said Chief Executive Larry Nichols said during an earnings call.

The company expects to produce about 220 million barrels of oil equivalent in 2007, a 10% increase from its output from continuing operations in 2006.

Part of the increased production comes from the Barnett Shale, where the Oklahoma City-based independent producer expects output to reach 800 million cubic feet a day, according to Exploration and Production Vice President Steve Hadden.

Devon produced 709 million cubic feet per day in December, Nichols said.

Exploration activities will ramp up in the U.S. Gulf of Mexico.

A second delineation well will be drilled at the Chevron Corp. (CVX)-led Jack project in the second half of 2007, Hadden said. Jack serves as the bellwether for the exploitation potential of the lower Tertiary trend, a rich hydrocarbons layer buried deep beneath the Gulf's subsoil.

Copyright (c) 2007 Dow Jones & Company, Inc.

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