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DEVON ENERGY REPORTS RECORD PRODUCTION AND RESERVES FOR 1991; 1992 PRODUCTION TO INCREASE

 DEVON ENERGY REPORTS RECORD PRODUCTION AND RESERVES FOR 1991;
 1992 PRODUCTION TO INCREASE
 OKLAHOMA CITY, Okla., Feb. 4 /PRNewswire/ -- Devon Energy Corp. (AMEX: DVN) has set its fourth consecutive record for both oil and gas production and total reserves for 1991. Further, the company expects a fifth consecutive record for production in 1992.
 Production Up 45 Percent; Reserves Increase 11 Percent
 For 1991, oil and gas production rose 45 percent over 1990 levels to 18.3 EBCF (equivalent billion cubic feet). From 1987 through 1991, oil and gas production almost tripled from 6.7 EBCF to 18.3 EBCF.
 Oil and gas reserves at year-end 1991 reached 214.4 EBCF, up 11 percent from the prior year. Total proved reserves at year-end 1991 were 4.5 times the 48.5 EBCF at year-end 1987.
 With total 1991 reserve additions of 38.9 EBCF and production of 18.3 EBCF, the company's reserve replacement ratio for the year was 213 percent. This was the fourth consecutive year that the company's reserve replacement ratio exceeded 200 percent.
 Devon also disclosed year-end 1991 estimates of future net revenues and pre-tax 10 percent present value of $246.6 million and $154.7 million, respectively. These figures were computed using Securities and Exchange Commission guidelines, which require the use of prices in effect at the date of the report. Both future net revenue and present value saw a slight reduction in 1991 compared with the amounts reported on Dec. 31, 1990. This resulted from slightly lower gas prices and dramatically lower oil prices compared to the Kuwait crisis-induced high of a year ago.
 New Mexico Coal Seam Gas Project Drives Production,
 Reserve Improvement
 Reserve and production gains resulted primarily from the company's 102-well coal seam gas project in northwest New Mexico at NEBU (the Northeast Blanco Unit), currently the company's single largest property.
 Devon has been building its gas reserves and production at NEBU over the
last three years. The drilling phase of the project was completed during 1990, and about one-third of the 160-plus miles of water and gas gathering lines were installed. In August 1990, the company began placing wells on line, which increased production that year by approximately 1.0 BCF (billion cubic feet). During 1991, virtually all of the remaining pipelines were installed, and currently 65 wells are on production. As a result, NEBU contributed a total of 8.7 BCF to 1991 production.
 After analyzing the NEBU wells' performance during the first half of 1991, the company's independent engineers increased estimated reserves for the project by approximately 38.8 BCF at June 30, 1991. This revision is reflected in the company's year-end 1991 figures.
 1992 Production Expected to Rise; Magnitude of Increase
 Depends Upon Prices and Demand
 Additional production gains are expected as the remaining wells are placed on line and certain production enhancement projects are completed. For 1992, total company-wide production is expected to jump more than 25 percent to 23 to 25 EBCF, assuming pricing and demand similar to that of 1991.
 The gain should be achievable in spite of the company's decision to curtail NEBU gas production by one-third in February because of current low prices. This will decrease Devon's February net production by 450,000 MCF (thousand cubic feet). Additional curtailment, if any, for NEBU will be determined on a month-by-month basis.
 "There is a common misconception that most operators will produce their coal seam gas at virtually any price because of the Section 29 tax credit," said Allen Turner, vice president. "However, the benefit of those credits is lost or reduced for most producers because of alternative minimum taxes or operating loss carryforwards. Consequently, when gas prices recently retreated to what we saw last summer, we once again curtailed production at NEBU. Devon has neither a financial nor operational motivation to sell its gas at just any price."
 Devon Energy Corp. is an independent energy company engaged primarily in oil and gas property acquisitions, exploration and production, and oil and natural gas remarketing. The company ranks in the top 25 percent of U.S. publicly held oil and gas firms, measured by oil and gas reserves.
 DEVON ENERGY CORPORATION
 1990 1991 Percent
 RESERVES (000s) Change
 Gas (thousand cubic feet) 169,473 191,642 +13
 Oil (barrels) 4,058 3,798 -6
 Equivalent thousand cubic feet 193,820 214,427 +11
 Future net revenues 250,261 246,604 -1
 10 percent present worth 162,084 154,745 -5
 Year Ended Dec. 31, 1990 1991 Percent Estimated
 Change for 1992
 PRODUCTION (000s)
 Gas (thousand
 cubic feet) 9,614 15,398 +60 20,000-22,000
 Oil (barrels) 545 484 -11 450-500
 Equivalent thousand
 cubic feet 12,582 18,302 +45 23,000-25,000
 Additional information can be obtained on Devon Energy via fax, at no cost by dialing 1-800-PRO-INFO, Code 047.
 -0- 2/4/92
 /CONTACT: Marian Moon of Devon Energy, 405-235-3611; or Lynne Franklin, 312-266-7800, or Kathy Phelan, 212-661-8030, both of the Financial Relations Board for Devon Energy/
 (DVN) CO: Devon Energy Corporation ST: Oklahoma IN: OIL SU: ERN


JT -- NY065 -- 6708 02/04/92 12:42 EST
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Date:Feb 4, 1992
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