Devon Increases Share of Lower Tertiary Kaskida Unit

Devon Energy Corporation has increased its ownership in the Kaskida Unit in the deepwater Gulf of Mexico. Kaskida is the site of a significant oil discovery. Devon exercised a preferential right to purchase its proportionate share of unit-partner Anadarko Petroleum's interest in Kaskida. By exercising its preferential right, Devon has purchased an additional 6.67 percent working interest in the Kaskida Unit, bringing the company's total working interest in Kaskida to 26.67 percent.

"We are pleased to have an opportunity to increase our ownership in the Kaskida discovery," said Stephen J. Hadden, senior vice president, exploration and production. "The Lower Tertiary trend is an important part of Devon's long-term exploration program, and we believe Kaskida is the largest of our four Lower Tertiary discoveries to date. We expect to begin producing oil from the Lower Tertiary trend in 2010 from our Cascade discovery."

The 51,800-acre Kaskida Unit covers nine blocks in the Keathley Canyon deepwater lease area of the Gulf of Mexico. The 2006 Kaskida discovery well encountered approximately 800 net feet of hydrocarbon-bearing sands.

Devon has established one of the largest lease positions in the Lower Tertiary trend with ownership in nearly 200 blocks. On these leases the company has currently identified an inventory of 20 exploratory drilling prospects.

In addition to Devon's 26.67 percent working interest, BP Exploration & Production Inc. has a 73.33 percent working interest in the Kaskida Unit. BP is the operator of the Kaskida Unit.