September 17, 2008
Devon Energy Provides Preliminary Report on Impact of Hurricanes in the Gulf of Mexico
OKLAHOMA CITY, Sept. 17 /PRNewswire-FirstCall/ -- Devon Energy Corporation announced today that it has restored a portion of its offshore oil and natural gas production in the Gulf of Mexico following Hurricanes Gustav and Ike. The company produces approximately 50,000 equivalent barrels of oil (Boe) per day from wells located in the Gulf of Mexico. Devon's U.S. offshore production is about 60 percent natural gas and represents roughly seven percent of the company's worldwide oil and natural gas production. Devon had suspended all of its production in the Gulf of Mexico as a precautionary measure prior to Hurricane Gustav.
"We are still in the process of evaluating the full extent of the impact of the recent hurricanes, but we are pleased to report that all of our employees are safe," said John Richels, Devon's president. "We safely evacuated our offshore facilities and are now getting everyone back to work as quickly as we can. I once again applaud the professionalism of our Gulf Coast and Houston teams as they prepared for and responded to the storms."
Currently, about 10,000 Boe per day of Devon's U.S. offshore production has been restored. The company expects to bring additional volumes back on line upon completion of damage assessments and any necessary repairs to Devon-operated and third-party facilities and transportation systems.
The hurricanes appear to have caused varying degrees of damage to several of the company's producing platforms in the central Gulf of Mexico. Hurricane Ike toppled two platforms in the Eugene Island area. The company's net production from the two toppled platforms was approximately 1,200 Boe per day prior to the storms.
Additionally, Hurricane Ike forced certain pipelines, third-party gas processing facilities and natural gas liquids fractionators in the Gulf Coast region to suspend operations. As a result, approximately 50,000 Boe per day of Devon's U.S. onshore production has also been curtailed. Repairs are now under way and electrical power is being restored. Therefore, the curtailed onshore volumes are expected to be brought back on line commencing over the next few days.
Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. 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.
Devon Energy Corporation
CONTACT: Investor Contact, Zack Hager, +1-405-552-4526, or Media, AleshaLeemaster, +1-405-228-8413, both of Devon Energy Corporation
Web site: http://www.devonenergy.com/
Company News On-Call: http://www.prnewswire.com/comp/118040.html