Wednesday, August 1, 2012

Devon Earnings Call: TMS Highlights

Devon's TMS commentary was brief, but positive this morning:
" In the Tuscaloosa Marine Shale, we drilled our first 3 wells in the northern portion of our acreage position. The Richman Farms 74H located in East Feliciana parish was brought online in the second quarter with an average 30-day IP rate of just shy of 300 barrels of oil per day. Now our next well, we've landed the lateral in a more optimal position and we saw significant improvement in rate. After 20 days of production, the Weyerhaeuser 14H, in St. Helena Parish has averaged 670 barrels of oil per day from a 5,700-foot lateral. Our third well in the area, the Murphy 63H in West Feliciana Parish, a 4,700-foot lateral, is slated to begin the completion operations early next week. We plan to drill our future Tuscaloosa wells with 8,000-foot laterals. We expect this trend of improving performance to continue as we make additional improvements to our drilling incompletions. Reducing costs and improving well performance over time are keys to making this play economic going forward."

I expect Devon's results to improve as they shift their focus to some of their deeper acreage.

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