Devon Energy Eagle Ford Spending $1.1 Billion in 2014

Devon Energy Eagle Ford Acreage Map
Devon Energy Eagle Ford Acreage Map

Devon Energy plans on investing $1.1 billion in the Eagle Ford in 2014 and will drill more than 200 wells. The company estimates average net production through October, 2014, of 70,000 - 80,000 boe/d in the play.

At the end of February 2014, the company closed on its $6 billion Eagle Ford acreage acquisition from GeoSouthern. The deal included 82,000 net acres in DeWitt and Lavaca Counties, and makes Devon a significant player in the Eagle Ford Shale.

Read more: Devon Energy Acquires Eagle Ford Assets From GeoSouthern for $6 Billion

Our Eagle Ford acquisition is one of several bold steps we have recently taken to upgrade our portfolio and improve the growth trajectory and profitability of our business.
— Devon CEO John Richels

Devon estimates peak average production in the Eagle Ford of ~140,000 boe/d over the next several years. That's not an unlikely target based on current production in the acquired acreage of 53,000 boe/d in 2013 and an estimated ~1,200 undrilled locations.

Read more: Devon Expects Peak Eagle Ford Production of 140,000 boe/d

According to the company, the Eagle Ford development program in 2014 will be self-funding and is expected to start generating free cash flow beginning in 2015. Risked recoverable resources in the Eagle Ford are estimated at 400 million boe, of which more than 60% are proved reserves.