Devon Energy's DVN production during the third quarter averaged 673 thousand barrels of oil equivalent per day, a 6% decrease from the second quarter. The drop was driven by voluntary curtailments, maintenance, and lower drilling activity. The company continues to make headway on the Texas side of the Haynesville play. Earlier this week, Devon announced that the Kardell Gas Unit 1H well had an initial 24-hour production rate of 30.7 million cubic feet equivalent per day. The well is located in San Augustine County, Texas, and the company claims that it is the highest IP rate in the play to date. Devon plans to utilize five rigs in its southern Haynesville acreage in 2010, which comprises 47,000 net acres in San Augustine and Sabine counties, Texas, and Sabine Parish, La. On the basis of industry maps and discussion, we believe Devon's acreage in San Augustine to be prospective for Bossier shale as well. Overall, Devon has 570,000 net acres in the Haynesville trend. We look forward to additional detail on the call about the Haynesville, the firm's drilling in Cana, and the progress it is making on the sale of a partial ownership interest in the Lower Tertiary.

 Full Analyst Report