Devon Energy pays $200M US for Alberta properties
Last Updated: Tuesday, July 5, 2005 | 4:02 PM ET
CBC News
Oklahoma City-based Devon said the purchase from ExxonMobil Canada Energy includes 208 net sections of heavy oil leases and 51 net sections of conventional oil and gas leases, encompassing about 67,000 hectares.
The properties are located adjacent to Devon's Manatokan field, which produces 7,000 barrels of oil per day from about 300 wells.
The company said about 85 per cent of the wells drilled in the Manatokan field have been successful and it believes the adjacent land has the same geology, reservoir characteristics and oil quality.
"We pursued this acquisition because of Iron River's similarities to our Manatokan field and the success we have enjoyed there," said Stephen Hadden Devon's senior vice-president of exploration and production.
"It represents several years of low risk drilling, including 70 locations that are drill-ready today," he said. "We can generally drill year-round in the Lloydminster area and we plan to have four or five rigs running at Iron River in the third quarter of 2005."
The company said Iron River is expected to add about 700,000 barrels of oil equivalent to its production this year.
Over the next four years, Devon said it plans to drill more than 800 wells on the properties, boosting production from the current level of less than 3,000 barrels a day to about 30,000 barrels a day by 2010.
Share Tools
Top News Headlines
- U.S. bank reforms could hurt Canadians, Flaherty fears
- Canada's finance minister and the governor of the Bank of Canada have formally complained to their American counterparts that proposed banking reforms could harm Canadian banks, business, investors and the government itself. more »
- CBC digital music service launches today

- CBC is diving into the world of online music with the goal of providing listeners access to their favourite tunes, and a way to discover new artists and connect with fellow music fans. more »
- Whitney Houston was found unconscious underwater, police say
- Whitney Houston was underwater and apparently unconscious in a bathtub at the Beverly Hilton Hotel when found, Beverly Hills police said Monday. more »
- Organ donation rates go flat
- Organ donation rates have stagnated in Canada since 2006, according to a new report. more »
Latest Business Headlines
- Chinese iPhone, iPad factories inspected
- Chinese factories where Apple devices are assembled are undergoing voluntary audits of their working conditions by an independent workers' rights watchdog that the company recently joined. more »
- Wheat prices steady despite record high stocks
- Wheat prices rose Monday after falling almost five per cent last week and despite estimates world wheat stocks are at all-time highs. more »
- Obama unveils $3.8T budget proposal
- U.S. President Barack Obama unveiled a $3.8 trillion spending plan on Monday for 2013 that seeks to achieve $4 trillion in deficit reduction over the next decade. more »
- Housing market to stay stable, says CMHC
- Canada Mortgage and Housing Corp. is predicting the Canadian housing market will remain fairly stable this year and next, with little change from 2011 in prices, new home construction and sales of existing homes. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12404.4 | 14.98 |
| DOW | 12871.35 | 70.12 |
| NASDAQ | 2928.44 | 24.56 |
| SP 500 | 1351.44 | 8.8 |
| NYSE COMPOSITE | 8053.31 | 61.26 |
| AMEX | 2431.66 | 13.68 |
| TSX-VENTURE | 1652.27 | -1.28 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- 'Disgusting' court backlog may free hit and run accused
- Adele wins best album, best record Grammys
- Whitney Houston autopsy results withheld
- Whitney Houston death shows no signs of trauma
- Ice road closed after 2 incidents
- Quebec town 'heartbroken' after killing of woman, sisters
- CBC digital music service launches today
- Manitoba wants ER death lawsuit thrown out
- Greece cleans up after anti-austerity riots

