Devon Energy High Bidder on Offshore Leases in Brazil

Devon Energy was the successful high bidder on two offshore blocks in Brazil's bid round six. Devon, bidding with partners, was the high bidder on blocks C-M-61 and C-M-101 located in the prolific Campos Basin. Devon's share of the bonuses on the two blocks is approximately $9 million.

With the addition of these blocks, Devon will hold approximately 1.3 million net acres in Brazil. The two contiguous blocks are located adjacent to and between the three billion barrel Roncador field and the one billion barrel Jubarte-Cocholote complex. Devon has no current oil and gas production in Brazil, but is drilling an exploratory well on block BM-C-8.

"Following our recent deepwater Gulf of Mexico discoveries, these blocks will help to replenish our worldwide inventory of high-impact prospects," said Stephen J. Hadden, Devon's senior vice president of exploration and production.

Devon expects to sign formal concession agreements concerning its winning bids shortly. Under the terms of these agreements, the company will commit to drill two exploratory wells and acquire 3-D seismic on each block within the next four years.