Avalon Shale Update: Devon Energy Corp. (DVN)

By Andrea: http://oilshalegas.com

Devon Energy Corp. (DVN) announced that they are starting to build a position in the Avalon shale in their 2010 2Q earnings call. They have assembled 235,000 perspective net acres in the condensate- and liquids-rich gas play. While they are still in the early evaluation of the Avalon shale play, their initial drilling results prove to show an attractive, repeatable play with outstanding economics. They best wells Devon has drilled to date in the Avalon shale have IPd at over 500 barrels of condensate per day, 500 barrels of NGLs per day and 3 million to 5 million cubic feet per day of gas. Well costs in the Avalon shale run between $3.3 million and $4 million. Devon expects Avalon wells to have average IPs of 300 barrels condensate per day, 300 barrels of NGLs per day and 2 million cubic feet of gas per day in the heat of the Avalon shale play. They expect per-well recoveries to average over 600,000 barrels of oil equivalent. Devon plays to participate in 32 Avalon wells in 2010, 20 of which they will operate.

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