OKLAHOMA CITY, July 1 /CNW/ -- Devon Energy Corporation (Amex: DVN; Toronto: NSX) today announced the results of a successful appraisal well to its significant St. Malo oil discovery. St. Malo, drilled in 2003, is in the deepwater Gulf of Mexico on Walker Ridge block 678. The appraisal well encountered more than 400 net feet of oil pay at depths greater than were encountered in the discovery well. The St. Malo discovery well encountered more than 450 net feet of oil pay over a gross interval of 1,400 feet.
Initial evaluation of the appraisal well indicates that the field's hydrocarbon resources cover a larger area than previously indicated. The partners will continue to evaluate the results of extensive testing carried out on the well. The evaluation will focus on productivity, the need for further appraisal drilling and viability of various development options.
The appraisal well is approximately one mile east of the St. Malo discovery. It is a re-entry and deepening of a dry hole drilled during 2001, which was drilled to a shallower objective. The appraisal well was deepened approximately 2,000 feet to a total depth of 28,903 feet. It is located in 7,032 feet of water. The cost of deepening the existing well was an estimated $25 million less than drilling a new well.
"This successful appraisal well reinforces our enthusiasm for the St. Malo discovery and the potential of the entire lower Tertiary trend," commented Devon's president, John Richels. "It's gratifying to achieve these positive results from Devon's multi-year, high impact investment programs."
Devon holds a 22.5 percent working interest in St. Malo. Unocal is the operator with a 28.75 percent working interest. Petrobras (25 percent), ChevronTexaco (12.5 percent), EnCana Gulf of Mexico LLC (6.25 percent), ExxonMobil (3.75 percent) and Eni SpA (1.25 percent) hold the remaining working interests.
St. Malo followed Devon's Cascade discovery in the lower Tertiary exploration focus area. Upon completion of the St. Malo appraisal well, the Discoverer Spirit drill ship will move to the Sardinia prospect in Keathley Canyon block 681. Devon has a 35 percent working interest in Sardinia, which is also a lower Tertiary test. Devon is currently drilling another high- potential lower Tertiary exploration well called Jack. The Jack prospect, in which Devon has a 25 percent working interest, is on Walker Ridge block 759. Devon holds interests in more than 250 blocks, or almost 600,000 net acres, in the Alaminos Canyon, Keathley Canyon and Walker Ridge areas of the deepwater Gulf of Mexico.
Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration, production and property acquisitions. Devon is the largest U.S.-based independent oil and gas producer 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 the strategic plans, expectations and objectives for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward- looking statements. These statements are based on certain assumptions made by the company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company.
/For further information: investors, Vince White, +1-405-552-4505, or media, Brian Engel, +1-405-228-7750, both of Devon Energy Corporation/
/Company News On-Call: http://www.prnewswire.com/comp/118040.html / /Web site: http://www.devonenergy.com /
