Devon Energy announces Brazilian oil development plans

Offshore staff

Devon Energy Corp. will proceed with block BM-C-8 development offshore Brazil. The company made an oil discovery on the block in 2004.

Devon named the development project named Polvo. It is in the Campos basin offshore Rio de Janeiro in 300 ft water depth. The companies have drilled three exploratory wells and two appraisal wells on the block. Two of the drilled structures have an estimated resource potential in excess of 50 MMbbl.

Engineers are sizing the production facilities for up to 50,000 b/d. The initial development will include a fixed production and drilling platform connected to a floating production, storage, and offloading vessel. The companies will begin facilities construction in 1Q 2006, with first production projected for the second half of 2007.

"Polvo will deliver meaningful production, reserves, and value from our international exploration program. We are particularly pleased with the project's rapid three-year discovery-to-production cycle time," says Stephen J. Hadden, senior vice president of exploration and production. "This success reinforces our confidence in the exploration potential of offshore Brazil. With Polvo and our existing offshore leases, we have a solid base for future exploration in Brazil and the potential for additional discoveries in the years ahead."

Devon is the operator of BM-C-8 with a 60% working interest and SK Corp. of Korea holds the remaining 4%.

7/01/05