Devon Energy Corporation Q2 2008 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-08-06 11:39:14.0

Tags: Devon Energy Corp.

Question-and-Answer Session

Operator

(Operator Instructions). And your first question will come from the line of Tom Gardner from Simmons & Company. Please proceed.

Tom Gardner

Good morning everyone.

Steve Hadden

Good morning.

Tom Gardner

Hey over in the Groesbeck area, are you still -- you know, given the success you had there to date, are you still looking at 6 bcf ultimate recovery and 150 locations, I already see that opportunity getting bigger overtime?

Steve Hadden

You know, Tom, we are seeing a relatively better performance that that planned number in these more recent wells. We haven’t really adjusted our model upwards yet. But if we continue to see those results we probably would. We are also in the Boseyer wells that we are drilling, we will drill about 15 this year and probably about the same number next year, and we are also doing some work on some -- there is some Boseyer line potential, significant Boseyer line potential in first horizontal field that has significant running room well over a 100 locations and we are just working through those pieces. So we think we will see those results continue this year and next year we are optimistic about that model moving up, but we haven’t adjusted it up yet.

Tom Gardner

Thanks for that. And one other question on the Lower Tertiary, my understanding is that the completion technology needs to improve to make the economics attractive, I think it has something to do with being able to complete the entire section. Can you give us an update on how that effort to improve technology is progression and what Devon's involvement in it has been?

Steve Hadden

Yeah Tom, I won't speak specifically about some of the specific prospects, because obviously we are keeping some of that technology and that development proprietary, but and within the partnership, but I will tell you that the current view we have on the completion still put all of our discoveries in the solid economic window with solid finding and development costs and we think we will get good production response in economic development. And we are moving forward with those developments starting with Cascade. With Cascade we are going to start drilling that second producing or the first producing well very soon. Devon is working actively that we have a few different vendors and we have some technology folks in order to optimize. It’s more of an optimization of those completions as opposed to a hurdle which shows they are currently uneconomic and we need to make them economic. So we are working with some of the major service providers, both with Cascade, but also with our partnership at Jack and St. Malo and the other discoveries that we have to move those forward. So our view is not that it’s uneconomic at this point and there is a threshold we have to clear in order to make it economic or desire as I think most of our partners is to optimize to get the best economics moving forward.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement