Production
Annual oil and gas production from continuing operations of 224 million Boe in 2007 was 12 percent more than in 2006. The company's reserve life index (proved reserves divided by annual production) is more than 11 years.
Production from continuing operations in 2008 is expected to total 240 million to 247 million Boe. The production growth in 2008 is expected to include additional contributions from onshore properties in both Canada and the U.S., a full year of production from Merganser and continued ramp-up of production from Polvo. Devon expects further production growth in 2009, to an estimated 259 to 274 million Boe.
Combined oil, gas and natural gas liquids production averaged 587 thousand Boe per day in 2006. This was four percent less than Devon's 2005 average daily production of 613 thousand Boe per day. This decrease in 2006 production was driven by property divestitures completed during 2005, partially offset by growth in production from retained properties during 2006.
Devon's combined production of oil, gas and natural gas liquids production increased throughout 2006. Fourth-quarter production climbed seven percent from 574 thousand Boe per day in 2005 to 613 thousand Boe per day in 2006.
Reserves
Devon's estimated proved reserves attributable to continuing operations reached a record 2,496 million oil-equivalent barrels (Boe) at December 31, 2007. This was nine percent greater than year-end 2006 estimated proved reserves from continuing operations. Devon added 437 million Boe of proved reserves from all sources. Annual oil and gas production from continuing operations of 224 million Boe in 2007 was 12 percent more than in 2006. The company's reserve life index (proved reserves divided by annual production) is more than 11 years.
The company added 390 million Boe through successful drilling (discoveries, extensions and performance revisions) in 2007. Revisions related to changes in year-end oil and gas prices increased 2007 proved reserves by 44 million Boe.
Proved developed reserves were 1,874 million Boe at December 31, 2007. This represented 75 percent of total proved reserves. Year-end proved reserves included 677 million barrels of crude oil, nine trillion cubic feet of natural gas and 321 million barrels of natural gas liquids.
Reserve Data (MMBoe)
Discoveries and extensions: 315
Revisions other than price: 75
Drill-bit and performance reserve additions: 390
Devon's estimated proved reserves at December 31, 2006, were a record 2,376 million oil-equivalent barrels (Boe). This is a 13 percent increase over year-end 2005 estimated proved reserves. Reserve additions from all sources before price revisions were 533 million Boe, more than double the company's annual oil and gas production of 214 million Boe. During 2006, Devon's reserve life index (proved reserves divided by annual production) increased from 9.4 years to 11.1 years.
