In the fourth part of this series, I will break down large oil and gas producer's with liquids dominant land plays. Devon's (DVN) business is beginning to move into a heavier weighting of liquids production. Devon has separated its United State's land holdings into four parts:
Of these four regions, the Permian is the heaviest weighted liquids producer. Devon has over one million acres here. It has 160,000 net acres in the Wolfberry. It has 196 producing wells, and has production of 9 MBoe/d with 91% coming from liquids. $240 million will be spent in 2011 and 5 operated rigs will be running. Devon has 150,000 net acres in conventional locations from the Delaware, Wolfcamp, Clearfork, and Wichita formations. It plans to spend $100 million on these locations in 2011 with five rigs working these formations. Bone Spring is located in New Mexico and Texas. Devon has 183,000 net acres in the Delaware Basin focused on the Bone Spring. Production is 89% liquids and it has five operated Devon rigs. In 2011, Devon will spend $130 million in capital on Bone Spring. Devon has 137,000 net acres focusing on the Avalon Shale. This is a natural gas play, but approximately 50% of production is condensate and liquids rich natural gas. $145 million will be spent here in 2011, with 2 operated rigs running. Devon's participation in the Permian is important, as it needs to continue to increase liquids production.