Devon Energy Estimates Campos Basin Oil Reserves at 850Mb

US oil company Devon Energy (NYSE: DVN) estimates total crude reserves could reach 850 million barrels (Mb) in two offshore blocks in Brazil's Campos basin, where it plans to start drilling exploration wells soon, the company said in an email response to questions from BNamericas.

The company plans to start drilling one well in each of the deepwater blocks, BM-C-30 and BM-C-32, in March, the company said.

Devon has recently signed a lease contract for a drillship from US oil equipment services company Transocean (NYSE: RIG) from 2008.

The ship will be deployed in the two above-mentioned blocks and in the BM-C-34 block in the Campos basin where Devon also has a working interest. The company has already carried out 3D seismic surveys of the blocks.

Devon's complete exploration program for the BM-C-30 block includes two wells from 2005-2008. The company's initial reserves estimates are 350Mb of oil at water depths of some 1,500 meters and drill depths of 3,900m, the company said in the email.

Devon has a 25% working interest in BM-C-30. US oil company Kerr McGee is the operator with 30%, Canada's EnCana has 25% and South Korea's SK Corporation has 20%.

The exploration program for the BM-C-32 block also includes two wells through end-2008, a region with similar depths as BM-C-30. Reserves are estimated at about 500Mb of oil.

Devon has a 40% working interest in the block and is the operator, Kerr-McGee has 33.33% and SK Corp has 26.67%.

The company is also preparing to drill five wells in the BM-C-34 block from 2006-2009, the email said. Devon has a 50% stake in that block and is the operator, while Brazil's federal energy company Petrobras (NYSE: PBR) has the other 50%.

Devon declined to give investment figures for its E&P development projects in Brazil but reaffirmed it is on track to start producing oil by mid-2007 at the Polvo field in the BM-C-8 block in the Campos basin.

Local press reported that the company has announced plans to spend US$300mn in the development of the Polvo field. The company estimates that Polvo has reserves of 50Mb of heavy crude.

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