Devon Apparent High Bidder on 26 Blocks in GoM Auction

Devon Energy was the apparent high bidder on 10 shallow water blocks and 16 deepwater blocks in the August 18, 2004, Western Gulf of Mexico Lease Sale 192. Devon bid alone on the shelf blocks and joined with partners on 10 of the winning deepwater bids. Devon's total net exposure for its share of the high bids is approximately $12 million. The bids are subject to approval by the U.S. Department of the Interior's Minerals Management Service.

Should all of its bids be approved, Devon would hold 845 lease blocks in federal waters of the Gulf of Mexico. This would include 272 lease blocks on the continental shelf and 573 in deep water. Of the total 845 lease blocks, 222 are producing and 623 are exploratory blocks. Devon currently operates 450 platforms and caissons in the Gulf of Mexico.

"Devon's recent discoveries in the Gulf of Mexico are validating our deepwater exploration capabilities," commented Stephen J. Hadden, senior vice president of exploration and production. "These blocks add to our strong portfolio of high-impact exploration prospects and build on our position as the largest independent holder of deepwater Gulf acreage, with more than 1.9 million net acres."