Devon provides Campos basin reserves estimates

U.S. oil company Devon Energy estimates total crude reserves could reach 850 MMbbl in two offshore blocks in Brazil's Campos basin, where it plans to start drilling exploration wells soon.

Offshore staff

(Brazil)- U.S. oil company Devon Energy estimates total crude reserves could reach 850 MMbbl in two offshore blocks in Brazil's Campos basin, where it plans to start drilling exploration wells soon.

Devon's plans call for drilling one well in each of the deepwater blocks, BM-C-30 and BM-C-32, in March.

Devon will utilize a drillship that they recently leased from U.S. oil equipment services company Transocean through 2008. The ship will be deployed in the two deepwater blocks and in the BM-C-34 block in the Campos basin, where Devon also has a working interest. The company has already carried out 3D seismic surveys of the blocks.

Devon's complete exploration program for the BM-C-30 block includes two wells. The company's initial reserves estimates are 350 MMbbl of oil at water depths of some 1,500 m and drill depths of 3,900 m. The company also reported that the program is scheduled to run through the end of 2008.

Devon has a 25% working interest in BM-C-30. They share the block with U.S. oil company and field operator Kerr McGee (30%), Canada's EnCana (25%) and South Korea's SK Corporation (20%).

Devon will also drill two wells during the exploration program for the BM-C-32 block, which runs through end-2008. This region has estimated reserves of 500 MMbbl of oil, at similar depths as BM-C-30.

Devon has a 40% working interest in the block and is the operator, Kerr-McGee has 33.33% and SK Corp has 26.67%.

The company is also preparing to drill five wells in a third block, BM-C-34, from 2006-2009. Devon has a 50% stake in that block and is the operator, while Brazil's federal energy company Petrobras has the other 50%.

In the statement outlining these developments, Devon did not divulge investment figures for its E&P development projects in Brazil. The company did reaffirm that it is on track to start producing oil by mid-2007 at the Polvo field in the BM-C-8 block in the Campos basin.

The company plans to spend $300 million in the development of the Polvo field, which has estimated reserves of 50 MMbbl of heavy crude.

02/11/2006

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