Devon Energy (DVN) announced a $1 billion increase in the company’s exploration and production capital budget for 2011, with some of the capital allocated for the development of the Barnett Shale.
Devon Energy now estimates that it would spend between $5.5 billion and $5.9 billion in 2011, compared to the previous range of $4.5 billion to $4.9 billion.
Devon Energy plans to spend $1.1 billion towards the development of the Barnett Shale and will drill 375 wells here in 2011. The previous capital plan called for the drilling of 325 wells. The company plans to focus on wells in Wise and Johnson counties, where the acreage contains high amounts of natural gas liquids.
Devon Energy estimates that it would exit 2011 with Barnett Shale production of 1.3 billion cubic feet of natural gas equivalents per day, up from the previous production estimate of 1.2 billion cubic feet of natural gas equivalents per day.