Devon Updates Activities Offshore Egypt

Devon Energy Corporation announced that initial production from its North July field in the Gulf of Suez, offshore Egypt has commenced. The North July #1 is currently flowing 5,500 barrels of oil and three million cubic feet of gas per day. The producing interval is 9,790 to 9,894 feet in the Rudeis formation. North July is located 5 miles offshore in 169 feet of water. The well was drilled in 1998, and construction of a three-slot platform commenced in 2000. Devon is the operator of the joint venture and owns a 100 percent working interest.

Concurrently, Devon also announced a new discovery in the south of the Gulf of Suez. The well was drilled on the South-West Gebel El-Zeit concession six miles offshore in 86 feet of water by Santa Fe International's jackup, Santa Fe 124. During testing, the SWGEZ-2 well flowed at a combined rate of 6,700 barrels of oil and 2.4 million cubic feet of natural gas per day. The results are from two tested intervals within the Nubia/Matulla formation between 7,786 and 7,894 feet. The well was drilled to a total depth of 8,040 feet. Devon is the operator of the concession and owns a 43.75 percent working interest. Partners include Ocean Energy with a 43.75 percent working interest and Forum Exploration with a 12.5 percent working interest.

Devon plans to conduct a facilities and engineering study to evaluate development alternatives for the South-West Gebel El-Zeit discovery. Production will require construction of a production platform and pipeline.