Devon Energy (DVN) reported earnings for the first quarter of 2010 and held a conference call on May 6, 2010, to discuss the results. The company made some comments on its unconventional resource basins including the Barnett Shale.
Devon Energy is trying to increase the proportion of oil and liquids produced out of the Barnett Shale, and has 18 rigs running. The company has 150 wells waiting on completion in the Barnett Shale.
“Moving to the Barnett Shale field in North Texas, we are currently running 18 Devon-operated rigs. We increased our drilling activity during the quarter, and we began working down our inventory of uncompleted wells. At the end of March, we are back to our normal inventory level of approximately 150 wells awaiting completion.”
“We are focusing our Barnett drilling into more liquid-rich areas where it is not uncommon to have wells produce as much as 100 barrels of liquids per million cubic feet.
Our net production in the Barnett averaged 1.1 Bcf equivalent per day for the first quarter, up 5% from the fourth quarter of 2009. We continue to expect Devon's Barnett production to reach its previous high mark of 1.2 Bcf equivalent per day during the third quarter.”
Source: Seeking Alpha
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