Devon Energy plans to divest oil and gas properties located principally in the Gulf of Mexico and onshore in the US and Canada. Oil and gas production from these properties is expected to average 90,000-100,000 b/d in 2004.

The properties represent proved reserves of 145-165 MMboe. Devon had company-wide proved reserves of approximately 2.1 Bboe at Dec. 31, 2003. Devon expects its 2005 production of oil, gas, and natural gas liquids to be 210-220 MMboe.

"Our growth strategy is to create shareholder value by investing in significant long-term projects," said John Richels, Devon's president. "The non-core and mature properties we plan to sell no longer fit that strategy. Given the premium prices recent divestitures have commanded, we believe this is an ideal time to refocus our producing portfolio. Proceeds from these divestitures will be applied to fund a planned share purchase program that we are also announcing today."

Due to the steeper production decline characteristics of many of the properties to be divested, Devon expects its company-wide reserve life to lengthen as a result of the sales. Additionally, divestiture of the properties is expected to result in a lower overall cost structure and improved operating efficiency.

Devon carried out a similar divestiture program in 2002, and refocused its portfolio by selling approximately $1.5 billion in non-core properties. The company expects to begin the current divestiture process in 4Q 2004 and substantially complete it in 1Q 2005. After-tax sale proceeds are expected to range between $1 billion and $1.5 billion.

09/28/04