Devon earns interest for ChevronTexaco blocks

Sept. 10--Devon Energy Corp. has entered an agreement to jointly participate with ChevronTexaco in a deepwater exploration program in the Gulf of Mexico where Devon will participate in a four-well drilling program on a promoted basis.

Sept. 10--Devon Energy Corp. has entered an agreement to jointly participate with ChevronTexaco in a deepwater exploration program in the Gulf of Mexico where Devon will participate in a four-well drilling program on a promoted basis. In exchange, Devon will earn a 25% working interest in 71 ChevronTexaco deepwater blocks. To date, 14 exploratory prospects have been identified on the joint-venture acreage. The first well in the program, the Sierra prospect in Atwater Valley block 187, is now drilling. Sierra is a sub-salt test with a target depth of 26,000 ft. The well, operated by ChevronTexaco, is utilizing the Transocean Discoverer Deep Seas drillship. The second well could be drilled in 4Q 2002. The two remaining commitment wells are planned for 2003.

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