View Full Version : More investment in OK for Devon

06-11-2007, 11:53 AM
I am one that is concerned Devon will get snatched up any year now so hopefully this is another piece holding them here

Devon Energy Corp. announced plans Monday to build a plant to process the increasing supply of natural gas coming from southeastern Oklahoma.
The Oklahoma City-based company will spend about $30 million to construct the plant. Another $40 million to $45 million will be spent expanding the facility over the next three years. The plant is to be operational next May.

Located 20 miles west of McAlester, the plant will handle production from a natural gas reservoir known as the Woodford Shale. It will process up to 200 million cubic feet of natural gas per day and produce 18,000 barrels per day of natural gas liquids such as ethane, propane, butane and natural gasoline.

"Favorable results from our drilling program are contributing to an understanding of the play and our confidence in its commerciality," Devon President John Richels said. "We are excited about the formation's potential."

Technologically advanced recovery techniques are being used in the shale formation. Water is injected underground at high pressure to fracture rock and expose gas. Horizontal drilling is also used. The company is using similar techniques in the Barnett Shale formation in north Texas.

Devon currently holds about 60,000 acres in the Woodford, representing several hundred potential drilling locations. The company began drilling in the Woodford in 2004 and plans to expand drilling operations.

"Increased energy production will contribute to the economic health of the McAlester area," said Helen Wheeler, executive director of the McAlester Area Chamber of Commerce. "Devon's expanding presence in the Woodford Shale will result in additional taxes paid to our local government, ultimately benefiting our schools and surrounding communities."