October 8, 2008

Oklahoma City-Based Devon Energy Restores Offshore Production

Devon Energy Corp. has restored 30,000 barrels of oil-equivalent per day of offshore oil and natural gas production in the Gulf of Mexico.

The Oklahoma City-based company was producing 50,000 barrels of oil equivalent per day from its Gulf of Mexico properties before suspending production before Hurricane Gustav and Hurricane Ike.

Devon expects to restore 5,000 barrels of oil equivalent per day of additional offshore production during the fourth quarter as repairs are made to production facilities and transportation systems.

Hurricane Ike toppled two of Devon's platforms in the Eugene Island area. As a result, offshore production of about 1,200 barrels of oil equivalent per day will be curtailed indefinitely.

Devon's remaining Gulf of Mexico production, about 50 percent oil and 50 percent natural gas, is expected to be restored in 2009 as third-party facilities are repaired.

Onshore, 600,000 barrels of oil equivalent of additional U.S. oil and gas production was curtailed in the third quarter because of Hurricane Ike. The curtailed onshore production has been restored.

Devon revised oil and gas production forecasts for the third and fourth quarter. Devon now expects production for the third quarter tot total 59 billion barrels of oil equivalent, down from previous estimates of 61 million barrels of oil equivalent.

For the fourth quarter, Devon 61 million to 62 million barrels of oil equivalent, down from an earlier forecast of 64 million barrels of oil equivalent.

Originally published by Journal Record Staff.

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