Devon Energy out to get jump on Canadian winter

Devon Energy has pumped another US$115 million into its Canadian capital budget for 2005, aiming to get a “jump on the winter drilling program,” said Chairman and Chief Executive Officer Larry Nichols.

A $30 million chunk will go to Iron River in east-central Alberta where the company took over 165,000 acres of ExxonMobil Canada land this summer and expects to drill 800 wells over the next four years to boost production to about 30,000 barrels per day by 2010.

Most of the balance is earmarked for the Deep basin region, where six Devon-drilled wells are already pumping 75 million cubic feet per day of gas.

Devon President John Richels said 50 of a planned 250 wells have been drilled in the Horseshoe Canyon coalbed methane play and two separate Mannville coalbed methane pilots are being evaluated, with no indication yet whether they are economic.

—Gary Park