Devon Energy Awarded License Offshore Nigeria

Devon Energy signed a production sharing contract covering block 242, offshore Nigeria. Devon will operate the block with a 75 percent working interest. The Nigerian Petroleum Development Company Limited holds the remaining 25 percent working interest. The initial lease term of block 242 is five years. During that period Devon is committed to conduct a seismic survey and drill one exploratory well. A second five-year lease extension is optional. The company plans to solicit joint venture partners in block 242 and in block 256 that Devon also operates.

Block 242 is located in the outer toe thrust structural trend of the western Nigerian deepwater area. Water depths on block 242 range from 4,000 to 10,000 feet. The lease covers approximately 575,000 acres and is on trend with the Ikija and Nsiku discoveries as well as the Agabami field that is currently being developed.

The company plans to begin 3-D seismic acquisition on the block in the first quarter of 2005. With the addition of block 242, Devon has ownership in 12 exploratory blocks in West Africa, nine in deepwater. In addition to Nigeria, Devon holds leases in Angola, Equatorial Guinea, Gabon and Ghana.

Devon is also an active oil and gas producer in West Africa, with production licenses in Cote d'Ivoire, Gabon and Equatorial Guinea. From these properties, Devon produces about 65,000 net equivalent barrels of oil per day.