• +353-1-416-8900(GMT OFFICE HOURS)
  • 1-800-526-8630(US/CAN TOLL FREE)
  • 1-917-300-0470(EST OFFICE HOURS)
Devon Energy Corporation, Company Intelligence Report - Product Image

Devon Energy Corporation, Company Intelligence Report

  • Published: June 2012
  • 136 pages
  • GlobalData

Devon Energy Corporation, Company Intelligence Report

Summary

Devon Energy Corporation (Devon) is one of the largest independent oil and gas companies in North America. The company is primarily engaged in the exploration, development and production of crude oil and natural gas resources in the US and Canada. Its exploration and production (E&P) activities in the US are located in the Mid-Continent, Permian Basin, Gulf Coast and the Rocky Mountains regions. Devon’s Canadian Operations are located in the Horn River Basin, Deep Basin, Foothills, Central, Northwest and Lloydminster areas and the thermal oil sands projects in Alberta. Earlier, the company was also involved in offshore operations in the Gulf of Mexico and other international markets such as China, Brazil, Azerbaijan and other international locations. However, Devon announced its plan to restructure operations in November, 2009 by concentrating its E&P activities on North American onshore fields and divesting its offshore international operations. The company sold off its non-core offshore operations during Q4 2009–Q2 2011; since then, all its E&P activities are located onshore in North READ MORE >

1
1

1.1 List of Tables
1.2 List of Figures
2 Devon Energy Corporation, Company Overview
3 Devon Energy Corporation, Investment Summary
3.1 Gained Technical Expertise through Operations in the Barnett Shale; Exploiting the Expertise in Other Unconventional Plays
3.2 Enhanced Focus on the Development of Oil and Liquids; Development of Unconventional Shale and Thermal Oil Sands Projects to Boost the Bottom Line
3.2.1 Appraisal and Development of Various Thermal Oil Projects to Boost Oil Production
3.2.2 Cana-Woodford Shale to Drive Liquids Production Growth
3.2.3 Exploring Liquids-Rich Targets in the Barnett Combo Play
3.3 Development of the Permian Basin Holds the Next Key after Unconventional Projects; Strong Upside Potential Expected
3.4 Substantial Untapped Resource Potential in the Exploration and Evaluation Assets; Sinopec Deal Will Accelerate Drilling into New Ventures; Expected to Bring Upside in Reserves and Production
3.4.1 US Legacy Exploration Assets
3.4.2 Canadian Exploration Assets
3.5 Midstream Assets to Support Production Growth
4 Devon Energy Corporation, SWOT Analysis
4.1 Strengths
4.1.1 Unconventional Drilling Expertise
4.1.2 Consistent Growth in Reserves and Production
4.1.3 Operational Efficiency
4.2 Weaknesses
4.2.1 Production Inclined Towards Natural Gas: Imbalanced Portfolio
4.3 Opportunities
4.3.1 Huge Untapped Resource Base to Deliver Immense Prospects in the Future
4.3.2 Enhanced Focus on Oil and Liquids to Drive Future Profitability
4.4 Threats
4.4.1 Stricter Regulations in Unconventional Drilling May Impact Devon’s Growth Plans
5 Devon Energy Corporation, Goals and Strategies
5.1 Driving Higher Returns through Organic and Inorganic Growth; Enhancing Focus towards Liquids to Boost Profitability
6 Devon Energy Corporation, Production Profile
6.1 Production Profile
6.2 The US
6.2.1 Mid Continent
6.2.2 Gulf Coast
6.2.3 Rocky Mountains
6.2.4 Permian Basin
6.3 Canada
6.3.1 Jackfish
6.3.2 Northwest
6.3.3 Lloydminster
6.3.4 Deep Basin
7 Devon Energy Corporation, Exploration and Development Overview
7.1 Exploration Activities
7.2 Development Activities
8 Devon Energy Corporation, Capital Expenditure
8.1 Costs Incurred
9 Devon Energy Corporation, Acreage
10 Devon Energy Corporation, M&A Highlights
11 Devon Energy Corporation, Forecast Production and Financial Statements
11.1 Income Statement (2009–2016)
11.2 Balance Sheet (2009–2016)
11.3 Cash Flow Statement (2009–2016)
11.4 Financial Ratios
12 Devon Energy Corporation, Valuation
12.1 Net Asset Value
13 Devon Energy Corporation, Peer Comparison
13.1 Share Price Performance
13.2 Operational and Financial Performance
13.3 Key Financial and Operational Ratio
14 Devon Energy Corporation, Detailed Operational and Financial Metrics
14.1 Devon Energy Corporation, Total Oil and Gas, Reserves and Production
14.1.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 2007-2011
14.1.2 Total Crude Oil & Natural Gas Production and Reserves By Country/Region, 2007-2011
14.1.3 Total Crude Oil and Natural Gas Reserve Changes, 2007-2011
14.2 Devon Energy Corporation, Crude Oil/Liquids Production and Reserve
14.2.1 Crude Oil/Liquids Production and Reserve Trend, 2007-2011
14.2.2 Crude Oil Production and Reserves By Country/Region, 2007-2011
14.2.3 Crude Oil/Liquids Reserve Changes, 2007-2011
14.3 Devon Energy Corporation, Natural Gas Production and Reserve
14.3.1 Natural Gas Production and Reserve Trend, 2007-2011
14.3.2 Natural Gas Production and Reserves, By Country/Region, 2007-2011
14.3.3 Natural Gas Reserve Changes, 2007-2011
14.4 Devon Energy Corporation, Total Crude Oil and Natural Gas Reserves Life Index
14.4.1 Total Crude Oil and Natural Gas Reserves Life Index, 2007-2011
14.4.2 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 2007-2011
14.5 Devon Energy Corporation, E&P Costs Trends
14.5.1 Upstream Capital Expenditure, 2007-2011
14.5.2 Acquisition Costs By Country/Region, 2007-2011
14.5.3 Exploration and Development Costs, By Country/Region, 2007-2011
14.6 Devon Energy Corporation, Oil and Gas Cost Per boe, $/boe
14.6.1 Oil and Gas Cost Per boe, $/boe, 2007-2011
14.6.2 Oil and Gas Cost Per boe, $/boe, By Country/Region, 2007-2011
14.7 Devon Energy Corporation, Reserve Replacement Ratio
14.7.1 Oil and Gas Production Replacement Ratio, 2007-2011
14.7.2 Oil and Gas Production Replacement Ratio, By Country/Region, 2007-2011
14.8 Devon Energy Corporation, Results of Oil & Gas Operations Trend
14.8.1 Oil and Gas Revenue and Expenses, 2007-2011
14.8.2 Oil and Gas Revenue and Expenses, By Country/Region, 2007-2011
14.9 Devon Energy Corporation, Oil and Gas Revenue and Expenses, Per boe
14.9.1 Oil and Gas Revenue and Expenses, By boe, 2007-2011
14.9.2 Oil and Gas Revenue and Expenses Per boe, By Country/Region, 2007-2011
14.9.3 Oil and Gas Performance Metrics
14.10 Devon Energy Corporation, Land Holdings and Well Data
14.10.1 Gross and Net Developed and Undeveloped Acreage, 2007-2011
14.10.2 Gross and Net Developed and Undeveloped Acreage, By Country/Region, 2007-2011
14.11 Devon Energy Corporation, Well Statistics
14.11.1 Producible Oil and Gas Well, 2007-2011
14.11.2 Producible Oil and Gas Well, By Country/Region, 2007-2011
14.11.3 Exploration and Development Wells Drilled, 2007-2011
14.11.4 Exploration and Development Wells Drilled, By Country/Region, 2007-2011
15 Appendix
15.1 Abbreviations
15.2 Methodology
15.2.1 Coverage
15.2.2 Secondary Research
15.2.3 Primary Research
15.3 Contact Us
15.4 Disclaimer

1.1 List of Tables
Table 1: Devon Energy Corporation, Key Events, 2011–2012
Table 2: Devon Energy Corporation, New Plays Activities Profile, 2012
Table 3: Devon Energy Corporation, Upcoming Production, 2012–2016
Table 4: Devon Energy Corporation, Capital Expenditure by Region and Segment, $m,
Table 5: Devon Energy Corporation, Costs Incurred, $m, 2009–2011
Table 6: Devon Energy Corporation, Reserve Replacement Ratio and Finding and Development
Table 7: Devon Energy Corporation, Devon Energy Corporation Versus Peers, Net Total Acreage, Million Acres, 2011
Table 8: Devon Energy Corporation, Key Transactions as a Buyer, 2006–2011
Table 9: Devon Energy Corporation, Key Transactions As a Seller, 2007–2011
Table 10: Devon Energy Corporation, Historic and Estimated Production, 2009–2016
Table 11: GlobalData, Price Forecasts, 2012–2016
Table 12: Devon Energy Corporation, Income Statement ($m), 2009–2016
Table 13: Devon Energy Corporation, Balance Sheet ($m), 2009–2016
Table 14: Devon Energy Corporation, Cash Flow Statement ($m), 2009–2016
Table 15: Devon Energy Corporation, Profitability Ratios, 2009–2016
Table 16: Devon Energy Corporation, Other Financial Ratios, 2009–2016
Table 17: Devon Energy Corporation, Net Asset Value, 2012
Table 18: Devon Energy Corporation, NPV of Oil/NGL Reserves, 2012
Table 19: Devon Energy Corporation, NPV of Natural Gas Reserves, 2012
Table 20: Devon Energy Corporation, NPV of Crude Oil and Natural Gas Reserves, 2012
Table 21: Devon Energy Corporation, Sensitivity Analysis on Fair Value ($/share), 2012
Table 22: Devon Energy Corporation, Peer Group Comparison, Operational and Financial
Table 23: Devon Energy Corporation, Peer Group Comparison, Financial Ratios, 2011
Table 24: Devon Energy Corporation, Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 2007-2011
Table 25: Devon Energy Corporation, Total Crude Oil & Natural Gas Production and Reserves, By Country/Region, MMboe, 2007-2011
Table 26: Devon Energy Corporation, Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2007-2011
Table 27: Devon Energy Corporation, Crude Oil Production and Reserves Metrics, MMbbl, 2007-2011
Table 28: Devon Energy Corporation, Crude Oil Production and Reserves, By Country/Region, MMbbl, 2007-2011
Table 29: Devon Energy Corporation, Crude Oil Reserve Changes, MMbbl, 2007-2011
Table 30: Devon Energy Corporation, Natural Gas Production and Reserves Metrics, Bcf, 2007-2011
Table 31: Devon Energy Corporation, Natural Gas Production and Reserves, By Country/Region, Bcf, 2007-2011
Table 32: Devon Energy Corporation, Natural Gas Reserve Changes, Bcf, 2007-2011
Table 33: Devon Energy Corporation, Oil and Gas Reserves Life Index, Years, 2007-2011
Table 34: Devon Energy Corporation, Oil and Gas Reserves Life Index, By Country/Region, Years, 2007-2011
Table 35: Devon Energy Corporation, Upstream Capital Expenditure, $m, 2007-2011
Table 36: Devon Energy Corporation, Proved and Unproved Acquisition Costs, By Country/Region, $m, 2007-2011
Table 37: Devon Energy Corporation, Exploration and Development Costs, By Country/Region, $m, 2007-2011
Table 38: Devon Energy Corporation, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, 2007-2011
Table 39: Devon Energy Corporation, Reserves Replacement, Finding and Development Costs, Finding Cost and
Table 40: Devon Energy Corporation, Oil and Gas Production Replacement Ratio, %, 2007-2011
Table 41: Devon Energy Corporation, 3-Year Wt.Avg. Oil and Gas Production Replacement Ratio, By Country/ Region, %, 2007-2011
Table 42: Devon Energy Corporation, Revenue and Expenses, $m, 2007-2011
Table 43: Devon Energy Corporation, Revenue and Expenses, By Country/Region, $m, 2007-2011
Table 44: Devon Energy Corporation, Oil and Gas Revenue and Expenses, $/boe, 2007-2011
Table 45: Devon Energy Corporation, Oil and Gas Revenue and Expenses, $/boe, By Country/Region, 2007-2011
Table 46: Devon Energy Corporation, Oil and Gas Performance Metrics, 2007-2011
Table 47: Devon Energy Corporation, Land Holdings (Developed and Undeveloped Acreage), Acres, 2007-2011
Table 48: Devon Energy Corporation, Land Holdings (Developed and Undeveloped Acreage), By Country/Region, Acres, 2007-2011
Table 49: Devon Energy Corporation, Producible Oil and Gas Wells, 2007-2011
Table 50: Devon Energy Corporation, Producible Oil and Gas Wells, By Country/Region, 2007-2011
Table 51: Devon Energy Corporation, Exploratory and Developed Wells, 2007-2011
Table 52: Devon Energy Corporation, Exploratory and Developed Wells, By Country/Region, 2007-2011

1.2 List of Figures
Figure 1: Devon Energy Corporation, Operational Map, 2012
Figure 2: Devon Energy Corporation, Operational and Financial Performance Overview, 2008–2011
Figure 3: Devon Energy Corporation, Share Price Performance, June 2011–June 2012
Figure 4: Devon Energy Corporation, Barnett Shale, Improvement in Drilling Parameters, 2004–2011
Figure 5: Devon Energy Corporation, Thermal Oil Projects’ Production and Share in Total Production, 2011–2016
Figure 6: Devon Energy Corporation, Net Production from the Cana-Woodford Shale, 2011–2016
Figure 7: Devon Energy Corporation, Net Production from the Barnett Shale, 2011–2016
Figure 8: Devon Energy Corporation, Permian Basin, Number of Rigs Used and Planned, 2009–2016
Figure 9: Devon Energy Corporation, Net Production from the Permian Basin, 2011–2016
Figure 10: Devon Energy Corporation, New Venture Plays, Operational Map, US, 2012
Figure 11: Devon Energy Corporation, Midstream Assets, North America, 2012
Figure 12: Devon Energy Corporation, Reserves and Production, 2008–2011
Figure 13: Devon Energy Corporation, Cost Comparison with Peers, 2008–2011
Figure 14: Devon Energy Corporation, Risked Resource Potential by Play, Bboe, Latest Reported
Figure 15: Devon Energy Corporation, Historic and Estimated Production, 2009–2016
Figure 16: Devon Energy Corporation, Operational Map, US, 2012
Figure 17: Devon Energy Corporation, Operational Map, Mid Continent, US, 2012
Figure 18: Devon Energy Corporation, Operational Map, Gulf Coast, US, 2012
Figure 19: Devon Energy Corporation, Key Areas in Canada, 2012
Figure 20: Devon Energy Corporation, Net Productive and Dry Exploratory and Development Wells, 2007–2011
Figure 21: Devon Energy Corporation, Net Productive and Dry Exploratory Wells, 2007–2011
Figure 22: Devon Energy Corporation, Exploration Costs and Development Costs, $m, 2007–2011
Figure 23: Devon Energy Corporation, Comparison of Exploration Costs and Finding & Development Reserve Additions, 2007– 2011
Figure 24: Devon Energy Corporation, New Venture Plays, Operational Map, US, 2012
Figure 25: Devon Energy Corporation, Permian Basin, Exploration Activities Map, 2012
Figure 26: Devon Energy Corporation, E&P Capital Expenditure by Segment, $m, 2009–2011
Figure 27: Devon Energy Corporation, Costs Incurred, $m, 2009–2011
Figure 28: Devon Energy Corporation, Reserve Replacement Ratio and Finding & Development Cost, 2009–2011
Figure 29: Devon Energy Corporation Versus Peers, Net Total Acreage, Million Acres, 2011
Figure 30: Devon Energy Corporation, Net Total Developed and Undeveloped Acreage by Region, Million Acres, 2011
Figure 31: Devon Energy Corporation, Peer Group Comparison, Relative Share Price Performance Index, June 2011–June 2012
Figure 32: Devon Energy Corporation and its peers’ Operational and Financial Parameters in $/boe, 2011
Figure 33: Devon Energy Corporation , Peer Group Comparison, Valuation Ratios, 2011
Figure 34: Devon Energy Corporation, Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 2007-2011
Figure 35: Devon Energy Corporation, Total Oil & Gas Reserves, End of Period, By Country/Region, MMboe, 2007-2011
Figure 36: Devon Energy Corporation, Total Oil & Gas Production, By Country/Region, MMboe, 2007-2011
Figure 37: Devon Energy Corporation, Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2011
Figure 38: Devon Energy Corporation, Crude Oil Production and Reserves Metrics, MMbbl, 2007-2011
Figure 39: Devon Energy Corporation, Oil Reserves, End of Period, By Country/Region, MMbbl, 2007-2011
Figure 40: Devon Energy Corporation, Oil Production, By Country/Region, MMbbl, 2007-2011
Figure 41: Devon Energy Corporation, Crude Oil Reserve Changes, MMbbl, 2011
Figure 42: Devon Energy Corporation, Natural Gas Production and Reserves Metrics, Bcf, 2007-2011
Figure 43: Devon Energy Corporation, Gas Reserves, End of Period, By Country/Region, Bcf, 2007-2011
Figure 44: Devon Energy Corporation, Gas Production, By Country/Region, Bcf, 2007-2011
Figure 45: Devon Energy Corporation, Natural Gas Reserve Changes, Bcf, 2011
Figure 46: Devon Energy Corporation, Oil and Gas Reserves Life Index, Years, 2007-2011
Figure 47: Devon Energy Corporation, Gas Reserve Life Index, By Country/Region, Years, 2007-2011
Figure 48: Devon Energy Corporation, Oil & Gas Reserve Life Index, By Country/Region, Years, 2007-2011
Figure 49: Devon Energy Corporation, Oil Reserve Life Index, By Country/Region, Years, 2007-2011
Figure 50: Devon Energy Corporation, Upstream Capital Expenditure, $m, 2007-2011
Figure 51: Devon Energy Corporation, Proved Acquisition Costs, By Country/Region, $m, 2007-2011
Figure 52: Devon Energy Corporation, Unproved Acquisition Costs, By Country/Region, $m, 2007-2011
Figure 53: Devon Energy Corporation, Development Costs, By Country/Region, $m, 2007-2011
Figure 54: Devon Energy Corporation, Exploration Costs, By Country/Region, $m, 2007-2011
Figure 55: Devon Energy Corporation, 3-Year Wt.Avg., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, 2007-2011
Figure 56: Devon Energy Corporation, Oil & Gas Finding & Development Cost/boe, 3-Year Average, By Country/Region, $/boe, 2007-2011
Figure 57: Devon Energy Corporation, Oil & Gas Finding Cost per boe, 3-Year Average, By Country/Region, $/boe, 2007-2011
Figure 58: Devon Energy Corporation, Reserve Replacement Cost per boe, 3-Year Average, By Country/Region,$/boe, 2007-2011
Figure 59: Devon Energy Corporation, Proved Reserves Acquisition Cost per boe, 3-Year Average, By Country/Region, $/boe, 2007-2011
Figure 60: Devon Energy Corporation, 3-Year Wt.Avg., Oil and Gas Production Replacement Ratio, %, 2007-2011
Figure 61: Devon Energy Corporation, 3-Year Wt. Avg. Gas F&D Production Replacement, By Country/Region, %, 2007-2011
Figure 62: Devon Energy Corporation, 3-Year Wt. Avg. Gas RRC Production Replacement, By Country/Region, %, 2007-2011
Figure 63: Devon Energy Corporation, 3-Year Wt. Avg. Oil & Gas F&D Production Replacement, By Country/Region, %, 2007-2011
Figure 64: Devon Energy Corporation, 3-Year Wt. Avg. Oil & Gas RRC Production Replacement, By Country/Region, %, 2007-2011
Figure 65: Devon Energy Corporation, 3-Year Wt. Avg. Oil F&D Production Replacement, By Country/Region, %, 2007-2011
Figure 66: Devon Energy Corporation, 3-Year Wt. Avg. Oil RRC Production Replacement, By Country/Region, %, 2007-2011
Figure 67: Devon Energy Corporation, Revenue and Expenses, $m, 2007-2011
Figure 68: Devon Energy Corporation, Depreciation, Depletion and Amortization From Upstream Oil & Gas Operations, By Country/Region, $m, 2007-2011
Figure 69: Devon Energy Corporation, Income Tax Provision (Benefit) From Upstream Oil & Gas Operations, By Country/Region, $m, 2007-2011
Figure 70: Devon Energy Corporation, Net Income/ Loss From Upstream Oil & Gas Operations, By Country/Region, $m, 2007-2011
Figure 71: Devon Energy Corporation, Oil & Gas Revenue, By Country/Region, $m, 2007-2011
Figure 72: Devon Energy Corporation, Profit (loss) Before Taxation From Upstream Oil & Gas Operations, By Country/ Region, $m, 2007-2011
Figure 73: Devon Energy Corporation, Production Costs, By Country/Region, $m, 2007-2011
Figure 74: Devon Energy Corporation, Total Expenses From Upstream Oil & Gas Operations, By Country/Region, $m,2007-2011
Figure 75: Devon Energy Corporation, Oil and Gas Revenue and Expenses, $/boe, 2007-2011
Figure 76: Devon Energy Corporation, Income Tax/(Benefit) per boe, By Country/Region, $/boe, 2007-2011
Figure 77: Devon Energy Corporation, Lifting Cost per boe, By Country/Region, $/boe, 2007-2011
Figure 78: Devon Energy Corporation, Annual Net Income per boe, By Country/Region, $/boe, 2007-2011
Figure 79: Devon Energy Corporation, Oil & Gas Revenue per boe, By Country/Region, $/boe, 2007-2011
Figure 80: Devon Energy Corporation, Total DD&A per boe, By Country/Region, $/boe, 2007-2011
Figure 81: Devon Energy Corporation, Total Revenue per boe, By Country/Region, $/boe, 2007-2011
Figure 82: Devon Energy Corporation, Oil and Gas Performance Metrics, 2007-2011
Figure 83: Devon Energy Corporation, Land Holdings (Developed and Undeveloped Acreage), Acres, 2007-2011
Figure 84: Devon Energy Corporation, Total Gross Undeveloped Acreage, By Country/Region, Acres, 2007-2011
Figure 85: Devon Energy Corporation, Total Net Undeveloped Acreage, By Country/Region, Acres, 2007-2011
Figure 86: Devon Energy Corporation, Total Gross Developed Acreage, By Country/Region, Acres, 2007-2011
Figure 87: Devon Energy Corporation, Total Net Developed Acreage, By Country/Region, Acres, 2007-2011
Figure 88: Devon Energy Corporation, Producible Oil and Gas Wells, 2007-2011
Figure 89: Devon Energy Corporation, Gross Productive Gas Wells, By Country/Region, Number, 2007-2011
Figure 90: Devon Energy Corporation, Gross Productive Oil & Gas Wells, By Country/Region, Number, 2007-2011
Figure 91: Devon Energy Corporation, Gross Productive Oil Wells, By Country/Region, Number, 2007-2011
Figure 92: Devon Energy Corporation, Net/Gross Oil & Gas Ratio, By Country/Region, %, 2007-2011
Figure 93: Devon Energy Corporation, Net Productive Gas Wells, By Country/Region, Number, 2007-2011
Figure 94: Devon Energy Corporation, Net Productive Oil & Gas Wells, By Country/Region, Number, 2007-2011
Figure 95: Devon Energy Corporation, Net Productive Oil Wells, By Country/Region, Number, 2007-2011
Figure 96: Devon Energy Corporation, Exploratory and Developed Wells, 2007-2011

Development of the Permian Basin Holds the Next Key after Unconventional Projects; Strong Upside Potential Expected

Devon holds several conventional and unconventional oil-rich prospects in the Permian basin, which are in different stages of exploration and development. The company reported a net acreage position of around 1.5 million acres in this basin as of April, 2012. Currently, it holds an unrisked resource potential of nearly 7.6 Bboe and risked resources of approximately 2.8 Bboe in the area. Devon’s resources in this basin are primarily made up of oil, which represents around 74% of its risked resources. 75% of the company’s Q4 2011 production from the Permian basin was from crude oil and NGLs.

Devon’s drilling inventory in this basin includes more than 8,000 risked locations, which provides it with an opportunity to accelerate its development activities in the area. In line with this, Devon plans to invest a total capex of nearly $1.4 billion into this basin during 2012, drilling more than 300 wells. Moreover, the company plans to increase the number of rigs it has in the Permian basin from its 21 currently deployed rigs to 24 by the end of 2012.

In the future, the company plans to further increase its number of rigs in the Permian basin and its drilling activities are also expected to follow an increasing trend.

Devon’s major development targets in the Permian basin include the Bone Spring oil play, the Delaware oil formation, the Wolfberry Light oil play and the Central Basin Platform conventional targets. Currently, Devon’s production from the Permian basin is mainly driven from the Bone Spring oil play and the Delaware oil formation, where its development activities are focused on further improving the company’s production level. The company holds a net risked resource potential of nearly 140 MMboe in both these targets. The company holds a drilling inventory of 350-400 locations in the Bone Springs oil play alone, and plans to drill 80 wells in this play during 2012. Devon reported an EUR/well of nearly 400-600boe and an average well cost of $5-8m/well in this play.

Devon’s development activities in the Delaware oil formation primarily target the conventional resources. The company drilled seven wells and completed four wells in Q3 2011, which showed a 30-day average initial production (IP) rate of 400boe/d. The company reported 125 net risked locations in the Delaware oil formation at the end of Q3 2011. It also reported performance improvement in terms of production rate and EUR in these formations over the past two years. Consequently Devon’s production increased from 7 Mboe/d in 2010 to 11 Mboe/d in 2011, which is further expected to increase to 19 Mboe/d in 2012.

Note: Product cover images may vary from those shown

RELATED PRODUCTS

Our Clients

Our clients' logos