Devon Energy (DVN) reported average production of 53,400 barrels of oil equivalent (BOE) per day from the company’s properties in the Permian Basin in the fourth quarter of 2011. The company was operating 16 rigs at the end of 2011 and drilled 74 gross wells during the quarter.
Devon Energy said that total Permian Basin production grew 19% relative to the final quarter of 2010, and liquids production grew at a rate of 22% on a year over year basis.The company has added an additional rig and plans to pick up two more rigs in 2012, bringing its Permian Basin rig count to 19.
Devon Energy plans to spend more than $1 billion in 2012 on the development of various formations in the Permian Basin, and drill more than 300 wells. The company is targeting the Wolfberry, Bone Springs, Wolfcamp Shale and the Avalon Shale.