OKLAHOMA CITY, Dec. 3 /CNW/ -- Devon Energy Corporation (NYSE: DVN) today
provided summary estimates of 2007 and 2008 capital expenditures and reserve
additions. The company also reconfirmed its oil and gas production guidance
for the years 2007, 2008 and 2009. Devon will report its actual results for
2007 and provide detailed forecasts for 2008 in early February 2008.
As previously announced, Devon continues to expect to produce
approximately 57 million oil-equivalent barrels (Boe) from continuing
operations in the fourth quarter of 2007. This would represent an eight
percent increase compared with Devon's fourth-quarter 2006 production from
continuing operations of 52.8 million Boe. Continuing operations excludes
production from the company's operations in Africa that it is divesting.
For the full year of 2007, Devon expects to produce approximately 223
million Boe. This represents annual production growth from continuing
operations of approximately 11.5 percent. The growth is a result of strong
performance from Devon's U.S. onshore properties, a full year of production
from the ACG field in Azerbaijan and second-half start-ups of production from
the company's Merganser field in the deepwater Gulf of Mexico and the Polvo
field offshore Brazil.
Production from continuing operations in 2008 is expected to total 240
million to 247 million Boe. The production growth in 2008 is expected to
include additional contributions from onshore properties in both Canada and
the U.S., a full year of production from Merganser and continued ramp-up of
production from Polvo. Devon expects further production growth in 2009, to an
estimated 259 to 274 million Boe.
Strong Drill-Bit Reserve Growth Expected in 2007 and 2008
Drill-bit capital for 2007 is estimated at $5.7 to $5.8 billion. Devon
estimates that for 2007 its additions to proved reserves will be 350 million
to 360 million Boe.
The company expects to post strong reserve growth again in 2008. Devon
forecasts proved reserve additions of 390 million to 410 million Boe in the
coming year. Drill-bit capital for 2008 is forecast at $6.1 billion to $6.4
$ Billions Millions of Oil Equivalent Barrels (MMBoe)
Drill-Bit Reserve Retained
Year (1) Capital (2) Additions (3) Production
------ ------------- ------------- -------------
2007 5.7 - 5.8 350 - 360 223
2008 6.1 - 6.4 390 - 410 240 - 247
2009 259 - 274
Notes to the table above:
(1) Drill-bit Capital includes exploration and development expenditures,
plugging and abandonment charges and capitalized interest and general
and administrative costs. Marketing and midstream and corporate
capital are excluded.
(2) Reserve Additions include performance revisions but exclude revisions
due to changes in oil, natural gas and natural gas liquids prices.
(3) Retained Production excludes production from African properties
selected for divestiture.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is one of the
world's leading independent oil and gas producers 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
forecasts, estimates, expectations and objectives for future operations. Such
statements are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of the company. Statements regarding
future production, reserve additions and capital expenditures are subject to
all of the risks and uncertainties normally incident to the exploration for
and development and production of oil and gas. These risks include, but are
not limited to, inflation or lack of availability of goods and services,
environmental risks, drilling risks and regulatory changes. Investors are
cautioned that any such statements are not guarantees of future performance
and that actual results or developments may differ materially from those
projected in the forward-looking statements.
For further information:
For further information: Investors, Zack Hager, +1-405-552-4526, or
Media, Brian Engel, +1-405-228-7750, both for Devon Energy Corporation Web