Devon Energy (DVN) held a conference call on February 17, 2010, to discuss its fourth quarter of 2009 earnings report and updated investors on its operations in the Barnett Shale. The Barnett Shale has been the growth engine for the company since it entered the play, and Devon Resources now has 6 Tcfe booked as reserves as of the end of 2009.
“The Barnett Shale was a leading growth area for the company again in 2009. Extensions, discoveries, and performance revisions in the Barnett accounted for 251 million Boe of additions, of which just 63 million barrels were related to the new SEC rule changes."
"These drill-bit additions replaced more than three times our Barnett production of 69 million equivalent barrels for the year. Related drill-bit capital was $820 million. At year-end, we had over six trillion cubic feet equivalent booked in the Barnett, with 78% developed and 22% proved undeveloped.”
“In the Barnett, we have – at 12/31/2009, we had 707 PUD locations booked. That compares to the north of 7,000 risk locations in the Barnett.”
“Well, the bulk of our locations are on 40-acre spacing. That’s where the 500-foot spacing, we call them, but they’re essentially 40-acre spacing. That’s where the bulk of them are located. We will have some that we’re doing on a 250-foot spacing or 20-acre spacing.”
Source: Seeking Alpha
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