Oklahoma City-based Devon Energy Corp. on Thursday cut its fourth quarter production guidance by about 3 million boe because of the ongoing impact from Hurricanes Katrina and Rita.
Devon initially forecast production in both the third and fourth quarters of 2005 to be about 56 million boe. Because of the hurricanes, Devon subsequently lowered its 3Q2005 companywide production estimate to 54.6 million boe. However, after considering the "ongoing impact" of the storms, Devon now expects 4Q2005 production to be about 53 million boe.
The producer has restored 50,000 boe/d of offshore oil and gas production pre-Katrina. Another 20,000 boe/d is expected to be restored by the end of the year. Restoring the remaining volumes is dependent upon "further damage assessments and repairs to Devon and third-party-operated facilities," it said. Volumes expected to remain suspended beyond year-end represent 10-15% of Devon's Gulf production, or less than 3% of its company-wide production.
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