Devon Energy increases share of Lower Tertiary Kaskida discovery

Devon Energy Corp. has increased its ownership in the Kaskida unit, a significant oil discovery in the deepwater Gulf of Mexico.

Offshore staff

OKLAHOMA CITY -- Devon Energy Corp. has increased its ownership in the Kaskida unit, a significant oil discovery in the deepwater Gulf of Mexico.

Devon exercised a preferential right to purchase its proportionate share of unit-partner Anadarko Petroleum's interest in Kaskida, giving Devon an additional 6.67% working interest in the unit, and bringing the company's total working interest in Kaskida to 26.67%.

"We are pleased to have an opportunity to increase our ownership in the Kaskida discovery," said Stephen J. Hadden, senior vice president, exploration and production. "The Lower Tertiary trend is an important part of Devon's long-term exploration program, and we believe Kaskida is the largest of our four Lower Tertiary discoveries to date. We expect to begin producing oil from the Lower Tertiary trend in 2010 from our Cascade discovery."

The 51,800-acre Kaskida unit covers nine blocks in the Keathley Canyon deepwater lease area of the Gulf of Mexico. The 2006 Kaskida discovery well encountered approximately 800 net ft (244 net m) of hydrocarbon-bearing sands.

Devon now owns nearly 200 blocks in the Lower Tertiary trend, with 20 exploratory drilling prospects.

Kaskida operator BP Exploration & Production Inc. has a 73.33% working interest in the unit.

04/23/2008

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