Devon Energy Corp. said it is moving forward with its winter exploration program in Canada’s Mackenzie Delta, partnering with Shell Canada for one well and participating on a separate license with Petro-Canada on a second well.

Under the Shell Canada agreement, the Oklahoma City-based company said it will drill the Itiginkpak F-29 natural gas exploration well later this month. Devon owns a 40% interest and will operate the well. Looking to test the Napartok structure, the well is located 17 miles northwest of Inuvik in the Northwest Territories. The company said construction of the ice road and lease site is already under way.

“We are pleased to be operating a program in a new partnership with Shell,” said John Richels, president of Devon Canada. “This project provides us with a great opportunity to utilize Devon’s established infrastructure, field personnel and access to local services.”

Contingent upon the success of the Itiginkpak F-29, Devon said it could drill a follow-up well approximately two miles north of the first. The company noted that Shell has an option to participate in the follow-up well.

Based on drilling and exploration success in 2002, Devon and Petro-Canada said they are preparing to drill another Mackenzie Delta well, Nuna I-30. The well is located approximately 56 miles northeast of Inuvik on Petro-Canada-operated lands. Devon said drilling on the well is expected to start in early February 2003.

In 2002, Devon and partner Petro-Canada drilled three wells in the Mackenzie Delta. The Devon-operated Tuk M-18 tested at restricted rates up to 30 MMcf/d. The well has estimated reserve potential of 200-300 Bcf. It has estimated sustained deliverability of about 60-80 MMcf/d.

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