Devon focuses Barnett drilling on liquids

On January 31, 2012 — No comments

Devon Energy Corp., the biggest producer in the Barnett Shale, doesn’t plan to follow in Chesapeake Energy Corp.’s footsteps when it comes to Chesapeake’s recent decision to curtail drilling in North Texas.

Chesapeake (NYSE: CHK) announced last week that it had reduced drilling from 13 rigs to six rigs in the Barnett Shale. The Oklahoma City-based company cited low gas prices and its decision to redirect resources to liquids-rich plays like the Eagle Ford Shale in South Texas.

Devon (NYSE: DVN), also based in Oklahoma City, plans to maintain the 12 drilling rigs the company is running in the Barnett with a focus on areas rich in natural gas liquids, spokesman Chip Minty said.

He said Devon has an inventory of about 2,500 drilling locations in areas of the Barnett Shale that are rich in natural gas liquids such as such as butane, propane, ethane and condensate. The natural gas liquids are found in pockets of Wise, Johnson and Denton counties, as well as other areas. Natural gas liquids comprise 21 percent of Devon’s production in the Barnett.

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