Even with the sale of some overseas assets, Devon Energy Corp.’s on- and offshore operations in the United States will help to deliver an 8% increase in oil and natural gas production this year, the company said Monday.
Devon, which among other things is the largest producer in the Barnett Shale of Texas, said it expects to produce 57 MMboe from continuing operations in the final quarter, up from the 52.8 million boe in the same period a year ago. Continuing operations exclude production from Devon’s African assets, which are being sold. For the full year, Devon expects to produce 223 MMboe, which would be 11.5% higher than in 2006.
“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,” the company stated.
Drillbit spending for 2007 is estimated at $5.7-5.8 billion; additions to proved reserves are expected to be 350-360 million boe.
With additional contributions from onshore properties in Canada and its on- and offshore U.S. assets, Devon said production from continuing operations in 2008 is forecast at 240-247 MMboe. In the coming year, the producer expects to add another 390-410 MMboe in proved reserves, with drillbit spending of $6.1-6.4 billion. Devon expects further production growth in 2009 to an estimated 259-274 MMboe.
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