OKLAHOMA CITY, Sept 08, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Devon Energy Corporation
(NYSE: DVN) announced today that it has received regulatory approval for the
company's second oil sands project in Canada. Construction of the 100 percent
Devon-owned Jackfish 2 project will begin immediately.
Once fully operational in 2012, Jackfish 2 will produce about 35,000
barrels of oil per day through a recovery method known as Steam Assisted
Gravity Drainage, otherwise known as SAGD. Over the life of the project, Devon
expects to recover about 300 million barrels of oil from Jackfish 2.
Devon president John Richels called Devon's oil sands operations a key
asset in the company's North American portfolio.
"We are very pleased to have approvals in hand so we can move forward with
our second SAGD project," Richels said. "The Canadian oil sands are an
important resource we need to tap into to meet the future energy needs of
North America. Through the use of SAGD technology, we believe we can access
the resource in a way that is efficient and environmentally responsible."
Devon is currently ramping up production at its original Jackfish project.
Jackfish, which commenced operations in 2007, is expected to reach its full
production capacity of 35,000 barrels of oil per day in the first half of
2009. Jackfish is about four miles east of the Jackfish 2 site in northeastern
Devon is the only U.S. independent with active operations in the oil
sands, and it is among the first in the industry to use SAGD technology. The
innovative method allows production from reservoirs that are too deep for
conventional mining operations.
The in-situ or "in place" recovery method is used to produce bitumen
through wells similar to conventional oil wells. Steam injected into the
reservoir heats the thick oil allowing it to flow to the surface.
In-situ production methods such as SAGD will play a major role in the oil
sands' long-term future. While this vast oil resource is second only to Saudi
Arabia in size, about 20 percent of the resource is accessible through mining.
Recovery of the remaining 80 percent will require in-situ production methods
such as the SAGD technology used at Jackfish.
In addition to its operational advantages, SAGD requires less surface
disturbance per unit of production when compared with other conventional
methods of oil production. This minimizes environmental disturbance caused by
Devon has been a proactive environmental steward through its development
of Jackfish. In May 2008, Devon was honored with the Canadian Association of
Petroleum Producers President's Award for Stewardship Excellence at Jackfish.
The award recognized Devon's commitment to water conservation. Jackfish is the
first SAGD project to use 100 percent saline water to facilitate the
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is the
largest U.S.-based independent oil and gas producer and is included in the S&P
500 Index. For additional information, visit http://www.devonenergy.com.
This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements are those concerning the
strategic plans, expectations and objectives for future operations. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future are
forward-looking statements. These statements are based on certain assumptions
made by the company based on its experience and perception of historical
trends, current conditions, expected future developments and other factors it
believes are appropriate in the circumstances. Such statements are subject to
a number of assumptions, risks and uncertainties, many of which are beyond the
control of the company.
The United States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves
that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions. This release may contain certain terms, such as resource
potential, reserve potential, probable reserves, possible reserves and
exploration target size. The SEC guidelines strictly prohibit us from
including these terms in filings with the SEC. U.S. investors are urged to
consider closely the disclosure in our Form 10-K, File No. 001-32318,
available from us at Devon Energy Corporation, Attn. Investor Relations,
20 North Broadway, Oklahoma City, OK 73102. You can also obtain this form from
the SEC by calling 1-800-SEC-0330.
SOURCE Devon Energy Corporation