Devon Energy Announces Pre-Salt Discovery Offshore Brazil

OKLAHOMA CITY, Dec 17, 2009 /PRNewswire-FirstCall via COMTEX/ -- Devon Energy Corporation (NYSE: DVN) today announced a pre-salt oil discovery on block BM-C-32 in the Campos Basin, offshore Brazil. This initial exploratory well on the Itaipu prospect was drilled to a total depth of 16,240 feet and encountered approximately 240 feet of oil column, at least 90 feet of net oil pay and no oil/water contact. Devon operates the well with a 40-percent working interest.

The Itaipu discovery is located 78 miles southeast of Vitoria City, Espirito Santo State, in 4,400 feet of water. It is approximately six miles southeast of the giant pre-salt Jubarte Field and 16 miles north of the 2008 Wahoo discovery on block BM-C-30. Devon has a 25-percent working interest in both the Wahoo discovery well and a successful appraisal well drilled at Wahoo earlier this year.

"With the addition of the Itaipu discovery to our previous success at Wahoo, we have created significant value in Brazil, while just beginning to explore our Campos Basin prospects," said David A. Hager, executive vice president of exploration and production. "As we move forward with plans to divest our international properties, we will continue to focus on maximizing the return on these assets to our shareholders."

Devon's partners in block BM-C-32 include Anadarko Petroleum Corporation with a 33.3-percent working interest. SK Energy Co., Ltd. holds the remaining 26.7-percent working interest.

Block BM-C-32 is one of seven offshore exploratory blocks in Brazil held by Devon, six of which are in the pre-salt trend. Devon has identified 20 prospects (including Wahoo and Itaipu) on its leases with net unrisked resource potential of 2 billion to 4 billion barrels of oil. The Deepwater Discovery drillship, currently under long-term contract to Devon, will be used for the 2010 exploration program which includes four planned wells on concession BM-C-34 as well as delineation of the Itaipu discovery.

Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is a leading U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For additional information, visit www.devonenergy.com.

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements are those concerning 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. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by Devon on its website or otherwise. Devon does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

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

http://www.devonenergy.com