Devon Energy Corp. has signed a production-sharing contract covering block 242, offshore Nigeria. During the initial five-year lease term, Devon will conduct a seismic survey and drill one exploratory well. The company plans to begin 3D seismic acquisition on the block in 1Q 2005. A second five-year lease extension is optional.
The company plans to solicit additional joint venture partners in block 242 and in nearby block 256, also operated by Devon.
Block 242 is in the outer toe thrust structural trend of the western Nigerian deepwater area in 4,000-10,000 ft of water. The lease covers 575,000 acres and is on trend with the Ikija and Nsiku discoveries as well as the Agbami field, which is in development.
Devon will operate the block with a 75% working interest. The Nigerian Petroleum Development Co. Ltd. holds the remaining 25% working interest.