Oklahoma Operator News: Devon Energy Reports Q1 2017 Results
According to their report, Devon averaged 95,000 BOE/day during the first quarter of 2017; an 8% increase over Q4 2016. The increase was due to Devon bringing online >25 operated wells; with initial 30-day rate averaging 1,600 BOE/day. Devon's Lease Operating Expense averaged $4.79 per BOE.
In the STACK Devon claims to have the largest leasehold position of any operator, with 430,000 Net Surface Acres. 80,000 acres was acquired from Felix Energy at the end of 2016. As you can see by the below map, Felix's acreage was located in the core STACK, particularly the "over-pressured region." Additionally, Felix transferred 119 wells to Devon, as reflected in the attached 1073 Form (Well Transfer Form).
Like most operators, Devon is targeting the Meramec and Woodford Formations. Devon is testing up to 8 wells per section. Due to the number of wells being proposed, mineral and leasehold prices have skyrocketed in the STACK.
We examined wells operated by Devon Energy that were completed after 01/01/2012. The analysis can be examined in the charts that follow. Please be advised that the data is based on production numbers reported by DrillingInfo. Additionally, some anomalies may exist in the reported averages since production data from recent wells may be limited and/or reflected as zero.
Devon's president and CEO, Dave Hager stated, “Looking ahead, we expect our operational momentum to build as we continue to accelerate investment across our world-class U.S. drilling programs and shift to full-field development. With excellent first-quarter results in hand, we are firmly on track to achieve our multi-year growth targets and deliver peer-leading cash flow expansion.”