Replies to post #23 on Devon Energy Corporation (DVN)

[OilStockReport]

DVN in competition with Samson in B-J Basin?

Devon Energy (DVN) has 40,000 net acres just south of Samson's leasehold. It has acquired the 3-D seismic. The Goshen area is starting to get crowded. There have been several deals in the Niobrara very close to Samson's 14,883 acres, and these deals have helped to create land price appreciation:

Chesapeake purchase at $3,150/acre
CNOOC purchase at $4,750/acre
Marathon (MRO) purchase at $5,000/acre
The D-J Basin has been an area of interest. Some of the biggest names in oil have purchased very large acreages. EOG Resources (EOG) has 300,000 net acres south of Samson's leasehold. EOG is currently the largest oil producer in the Niobrara. A more in depth article here covers EOG's other oil and gas plays. This company has reported several key facts with respect to the Niobrara:

The Niobrara is a highly fractured oil shale play
Success converting acres from a fractured to a matrix play
Higher recoveries then expected
Mix of 94% liquids and 6% gas
EOG has three rigs running, and plans to drill 40 wells here in 2011. In 2010, EOG reported drilling four test wells. The results were:

Jake 2-01H at 1558 Bop/d
Elmer 8-31H at 730 Bop/d
Red Pole 10-16H at 1100 Bop/d
Critter Creek 9-15H at 748 Bop/d
More recent well tests done at restricted rates were:

Critter Creek 13-17H at 731 Bop/d
Elsie 7-34H at 820 Bop/d
Not only has EOG been one of the first players in the Niobrara, they are leading the way drilling. Of its eight wells producing, EOG recorded an average IP of 800 Boe/d. It is important to watch EOG successes as there will be catalysts for other stocks in the region.

[OilStockReport]

Been hearing a lot about DVN lately, even Dan Dicker is favoring this one!