Devon Energy

Devon Rocky Mountain Report – 5/1/2013

 Our Rockies oil exploration program delivered encouraging results in the first quarter. Within our powder river basin acreage in northeast Wyoming we brought five oil wells online during the quarter targeting the Turner, Frontier and Parkman formations. Initial 30-day production from these five wells averaged 540 BOE per day.
Following the end of the quarter, we commenced production on two additional high-rate oil wells. After a few weeks of production, these wells targeting the parkman and Turner were averaging 1,100 barrels of oil equivalent per day including 960 barrels of oil. Our four-rig program in the Rockies will focus on exploiting our success in the powder river throughout 2013. To date we have identified approximately 600 risk locations across these three formations and we expect this inventory to grow as we continue to derisk this emerging opportunity.
Dave Constantine – Simmons & Company
Okay, appreciate that clarification and then maybe a little bit more specifically looking at the Powder River basin results, can you talk about length of laterals, design of the wells, et cetera, (inaudible) the results from those wells in the four-rig program are pretty darned impressive.
David Hager
You’re right David, this is David, the results were impressive and have really given us renewed confidence that we have a lower risk development opportunity with a lot of locations out there. The well design, I don’t have the specifics on them, but we’re typically drilling those around 45,000, 5,000-foot laterals. Pretty typical for the – for the area. And so there’s nothing particularly unique, I would say, about the drilling and the completion side. What we’ve really been able to do is just high grade the acreage significantly where from a geological standpoint where each of these plays work and that’s the key to it so we’ve done a lot of detailed technical work to figure that out and over the course of the past year or two and now we’re starting to see the results of it.