OKLAHOMA CITY, Oct. 6 /CNW/ -- Devon Energy Corporation (NYSE: DVN)
announced today that it has restored approximately 30,000 oil-equivalent
barrels (Boe) per day of offshore oil and natural gas production in the Gulf
of Mexico. Devon was producing approximately 50,000 Boe per day from its Gulf
of Mexico properties prior to suspending production in preparation for
Hurricanes Gustav and Ike.
Devon expects to restore approximately 5,000 Boe per day of additional
offshore production during the fourth quarter of 2008 as repairs are made to
production facilities and transportation systems.
As previously announced, Hurricane Ike toppled two of Devon's platforms
in the Eugene Island area. As a result, offshore production of about 1,200 Boe
per day will be curtailed indefinitely. Devon's remaining Gulf of Mexico
production, about half of which is oil and half of which is natural gas, is
expected to be restored in 2009 as third-party facilities are repaired.
Onshore, approximately 600,000 Boe of additional U.S. oil and gas
production was curtailed in the third quarter as a result of Hurricane Ike.
The curtailed onshore production has been restored.
Revised 2008 Production Estimates
Devon also revised its third-quarter and fourth-quarter 2008 oil and gas
production forecasts. The revised quarterly forecasts reflect weather-related
production curtailments and operational down time at the ACG field in
Azerbaijan. Transportation interruptions and mechanical down time at the
offshore Azeri platforms at ACG have required the operator to reduce
production from the field pending repairs.
Devon previously forecast company-wide production for the third quarter
of 2008 at approximately 61 million Boe. The company now expects third-quarter
2008 company-wide production to be approximately 59 million Boe. About
two-thirds of the two million Boe reduction to third-quarter volumes is
attributable to the U.S. hurricanes and to typhoons in the South China Sea.
The weather-related reduced volumes are roughly 40 percent oil and 60 percent
natural gas. The remaining one-third of the third-quarter forecast reduction
is attributable to the ACG field, which produces only oil.
In the fourth quarter of 2008, Devon expects to produce between 61
million and 62 million Boe, depending upon the timing of repairs. This
compares with a previous company-wide forecast of 64 million Boe. About
two-thirds of the reduction to the fourth-quarter forecast is attributable to
curtailments caused by the U.S. hurricanes. The hurricane-related reduced
volumes in the fourth quarter are roughly 50 percent oil and 50 percent
natural gas. The remaining one-third of the fourth-quarter forecast reduction
is attributable to expected down time at ACG.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is the
largest U.S.-based independent oil and gas producer and is included in the S&P
500 Index. For additional information, visit http://www.devonenergy.com.
This press release includes "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements are those concerning
the strategic plans, expectations and objectives for future operations. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future are
forward-looking statements. These statements are based on certain assumptions
made by the company based on its experience and perception of historical
trends, current conditions, expected future developments and other factors it
believes are appropriate in the circumstances. Such statements are subject to
a number of assumptions, risks and uncertainties, many of which are beyond the
control of the company.
For further information:
For further information: Investor Contact, Zack Hager, +1-405-552-4526,
or Media Contact, Chip Minty, +1-405-228-8647, both of Devon Energy
Corporation Web Site: http://www.devonenergy.com