Devon Energy Overview: The Company, Exploration, and Technology

*
Herb Martin1 Search and Discovery Article #70124 (2012)
Posted October 8, 2012** *Adapted from presentation at Tulsa Geological Society dinner meeting, September 4, 2012 **AAPG©2012 Serial rights given by author. For all other rights contact author directly.
1

VP Strategic Geoscience, E&P Strategic Services group, Devon Energy, Oklahoma City, OK (herb.martin@dvn.com)

Abstract Devon Energy is a pioneer company in the “unconventional” plays, and today it is focused on exploring and developing a number of these plays across North America. This informal presentation consists of three parts (1) a focus on Devon the company, with some insight into the corporate structure, corporate values and philosophy, and our current activity and capital budget; (2) a high-level view of some of the plays in which Devon is involved; (3) some insight into some of our approaches to technology and innovation. In the first part, the current structure of Devon (subsequent to the divestiture of international and GOM properties) is examined and discussed, including the philosophy behind those decisions. Further to that, Devon’s current exploration philosophy and activity is considered. The middle part of presentation is an overview of some of Devon’s current activity. That includes Devon’s ideas on play entry, balance of spending, and risk management. Lastly, introduction is provided to Devon’s current approach to innovat ion and technology, particularly in the geosciences. The structure of Devon’s Strategic Geosciences group and its function is discussed, and then highlighted with a few examples of that team’s work.

Devon Energy Overview:
The Company, Exploration, and Technology
Herb Martin, Vice President – Strategic Geoscience

Tulsa Geological Society September 4, 2012

Investor Notices
Safe Harbor Information provided in this presentation includes “forward-looking statements” as defined by the Securities and Exchange Commission. Forward-looking statements are identified as “forecasts, projections, estimates, plans, expectations, targets, etc.” and are subject to a variety of risk factors. For representative risk factors that could cause Devon’s actual results to differ materially from the forward-looking statements contained herein, see Form 8-K filed February 15, 2012. Cautionary Note to Investors The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. This presentation may contain certain terms, such as resource potential and exploration target size. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosure in our Form 10-K for the fiscal year ended December 31, 2011, available from us at Devon Energy Corporation, Attn. Investor Relations, 20 North Broadway, Oklahoma City, OK 73102. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov.
NYSE: DVN www.devonenergy.com

Devon History
• Founded as a private company in 1971 • Became a public company in 1988 • Currently listed on the New York Stock Exchange under the ticker symbol DVN

• Has grown from 185 employees in 1981 to more than 5,000 employees today
• Established a portfolio to provide stable production and a solid platform for future growth

NYSE: DVN

www.devonenergy.com

Top Oklahoma companies
Enterprise value
US$, Billions

Note: Enterprise value – August 2012.

NYSE: DVN

www.devonenergy.com

6 billion Groesbeck NYSE: DVN www.devonenergy.0 billion BOE (42% liquids) Deep Basin Horn River Jackfish Pike Canadian Oil Potential Existing operations New areas covered by Sinopec JV Q2 2012 production: 679 MBOED (37% liquids) Sales revenue mix: 57% oil 18% NGLs 25% natural gas (Q2 2012) Powder River Washakie Rockies Oil Michigan Utica Ohio Significant midstream business Cana Woodford Granite Wash Permian Basin Mississippian Barnett Shale Tuscaloosa Shale Haynesville/Bossier Carthage Enterprise value: $27.Devon today Proved reserves: 3.com .

Alberta: 1.devonenergy.222 employees HOUSTON Current as of February 2012 Total: ~5400 employees NYSE: DVN www.004 employees Houston: 495 employees Field Offices: OKLAHOMA CITY 2.Employment centers Oklahoma City: CALGARY Corporate Headquarters 1.648 employees Calgary.com .

Devon’s Strengths Disciplined focus on per share results Deep inventory of development opportunities Strong.devonenergy.com . highly-visible oil growth Significant positions in emerging oil plays Superior financial strength and flexibility NYSE: DVN www.

32 182 168 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Drill-Bit Reserve Replacement(1) (% of Production Replaced) Drill-Bit F&D (3 Yr Avg.68 $13.87 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Excludes price revisions NYSE: (1) DVN Note: Includes a non-GAAP measure www.71 $6.com .)(1) ($/BOE) 269% 233% 198% 223% 175% 160% $10.devonenergy.Track Record of Success North American Onshore Historical Performance Production Growth (MMBOE) 240 LOE per BOE ($/BOE) 220 207 223 $6.54 $7.87 $7.06 $7.88 $11.32 $8.01 $11.36 $10.59 $12.

9 2006 2007 2008 2009 2010 2011 Q2-2012 NYSE: DVN www.9 65.devonenergy.com .Significant Oil Production Growth North American Onshore Production Data in MBOPD 148.7 105.7 74.9 89.6 122.5 100.

2 BBOE Risked Resource (31. Oil-focused upside to risked resource NYSE: DVN exploration provides www.com Slide 10 .7 19% NGLs (19%) Gas (52%) 81% 3.1 8.4 16.devonenergy.0 BBOE.8 BBOE Unrisked) Risked Resource By Product (BBOE) Oil (29%) 4.2 Total Proved Reserves (26% PUD) Additional Risked Potential Note: Includes 12/31/11 proved reserves of 3.Devon’s Risked Resource Base High-Quality and Balanced 16.

6 1.2 1.6 Total Risked Resources 2.2 1.0 0.4 4.6 16.3 1.4 0.5 1.4 0.8 0.3 Additional Risked = Potential 2.3 2.0 1.5 0.7 1.1 1.Resource By Asset Strong Foundation for Growth Data in BBOE Unrisked Resource Permian Basin Barnett Shale Cana Woodford Shale 7.9 + Canadian Oil Sands East Texas/Gulf Coast Other U.1 0.8 Proved Reserves 0.6 3.devonenergy.8 2.2 0.1 1. Other Canada Horn River Sinopec JV Assets (net) Total 2.8 31.8 2.2 NYSE: DVN www.9 0.1 2.3 1.S.2 3.6 13.6 4.8 1.2 0.9 4.com .6 1.

and quality of drilling inventory  Harvesting mature and lower return assets (Since 2002 divested ≈$17 billion of assets)  New leasehold capture (Since 2009 invested >$4 billion into leasehold capture and exploration)  Joint ventures / farm-ins (Recent ~$4.Portfolio Management Goal: Optimize depth.com .0 billion JV transactions) NYSE: DVN www.devonenergy. diversity.

025 billion drilling carry) Mississippian Cline Shale & Wolfcamp Shale • Sumitomo receives 30% of Devon’s interest Tuscaloosa Shale • Net acreage in joint venture: 650.Growing the Resource Base New Ventures Exploration Sinopec Joint Venture • $2.devonenergy.000 • Devon serves as operator Sinopec joint venture assets Sumitomo joint venture assets NYSE: DVN www.6 billion drilling carry) • Sinopec receives 33% of Devon’s interest • Net acreage in joint venture: 1.com .5 billion transaction ($900 million cash and $1.4 billion transaction ($340 million cash and $1.5 million • Devon serves as operator Rockies Oil Michigan Utica Ohio Sumitomo Joint Venture • $1.

2012 v.Exploration & Exploitation Sept 4.03 14jun2011 .

G & G.Devon Today 2012 Exploration Horn River Jackfish Pike Canadian Oil Potential Existing operations New areas covered by Sinopec JV Projected 2012 exploration spending Land.600 Powder River Washakie Rockies Oil Michigan Utica Ohio Cana Woodford Granite Wash Permian Basin Groesbeck Mississippian Barnett Shale Tuscaloosa Shale Haynesville/Bossier Carthage NYSE: DVN www. Testing Breakdown • • • Mississippian leasehold & testing $800 Cline Shale leasehold & testing Other $350 $450 Deep Basin $1.devonenergy.com .

devonenergy.5 million Texas NEW MEXICO OKLAHOMA Net unrisked resource: 7.com .000 Bone Spring & Delaware Central Basin Platform Wolfcamp (Delaware)  Significant exposure to oil & liquids plays Midland  21 operated rigs (24 by year-end) Wolfcamp (Midland) Ozona Arch Conventional  Q4 2011 net production: 53 MBOED  Oil and liquids content ≈75% of production Diablo Platform NYSE: DVN www.8 BBOE Risked locations: >8.6 BBOE TEXAS Northwestern Shelf Eastern Midland Basin Wolfberry Cline Shale Shelf Net risked resource: 2.Permian Basin Overview New Mexico Net acres: 1.

000 net acres (2012 plans: Drill ≈100 wells) Lea Eddy Wolfberry Bone Spring & Delaware Andrews Martin (2012 plans: Drill ≈110 wells) (Best wells: IP’s >1.Permian Basin Oil Development Projects Development Overview • Low-risk.devonenergy.com . Strawn. Clear Fork & others) Reeves Conventional Pecos NYSE: DVN www.000 net acres • High-impact wells Wolfberry • 160. high-margin oil plays Gaines Dawson New Mexico NW Shelf Texas • Multi-year drilling inventory • 16 operated rigs Bone Spring/Delaware • 185.000 BOED) Midland Loving Winkler Ector Midland Ward Crane Upton • Upside: Downspacing and Wolfcamp horizontal exploitation Other Conventional Activity • Exploit Central Basin Platform targets • Stacked oil pays (Tubb. Wichita-Albany.

com Slide 18 .Cana Woodford Shale Overview  Estimated play resource in-place: 50220 BCFE per square mile  Oil and liquids-rich gas play  Low above ground risk (markets. regulatory environment)  Industry rigs running: 46  Producing wells: ≈500 Play Fairway Oklahoma City NYSE: DVN www. topography.devonenergy.

400 Dewey Blaine Risked locations: Net acreage: 244.4 TCFE ≈5.000 TEXAS Low average royalty burden: 21% Custer Q2 2012 net production: 280 MMCFED Canadian 2012e program: >40% of production is liquids Expanding gas processing facility: • 30 MBPD of NGL capacity Cana Plant Washita Significant undrilled liquids-rich inventory • ≈3.Cana Woodford Shale Liquids-Rich Gas Development Net risked resource: OKLAHOMA 11.com .devonenergy.000 locations 2012 plans: Drill ≈200 wells Caddo Grady NYSE: DVN www.

devonenergy.600 Legacy land position held by production Hemphill ≈200 MMBOE ≈350 net wells Low average royalty burden: 19% Q2 2012 net production: 19 MBOED Wheeler Liquids drive superior economics 3 operated rigs running Granite Wash OKLAHOMA Oklahoma City 2012 plans: Drill ≈65 wells TEXAS NYSE: DVN www.Granite Wash Oil & Liquids-Rich Development Net risked resource: Risked locations: Net acreage: 63.com .

32 BCFED 2012e program: >30% of production is liquids LIQUIDS-RICH ≈443.500 locations 2012 plans: Drill ≈300 wells Hill TEXAS www.Barnett Shale Liquids-Rich Gas Development Net risked resource: Jack Wise Denton 14.com .000 net acres Q2 2012 net production: 1.000 net acres Ft.8 TCFE ≈ 5.000 Risked locations: Net acreage: 624.000 Denton Bridgeport Plant Low average royalty burden: 18% Palo Pinto Parker DRY GAS ≈ 181.devonenergy. Worth Significant free cash flow Tarrant Johnson Hood Erath OKLAHOMA Liquids-rich drilling inventory: ≈2.

Devon’s Thermal Oil Position SAGD Development Jackfish 2 Jackfish Field characteristics • Low F&D • Flat production profile • Long reserve life >20 years Jackfish • Top-tier operating performance • Q2 2012 net production: 33 MBOPD Jackfish 2 • Q2 2012 net production: 18 MBOPD • Reach peak facility capacity in 2013 Jackfish 3 Jackfish (100% WI) Pike (50% WI) Access Pipeline Jackfish 3 • Construction ≈40% complete Pike • Up to five SAGD development phases • First regulatory application filed in June www.devonenergy.com NYSE: DVN .

devonenergy. exploration Canada exploration Development & exploitation assets Total Unrisked Resource  Lease best plays  Test commerciality  Expand position NYSE: DVN www.4 31.New Ventures/Exploration Process Unlocking Significant Potential  Methodical exploration Unrisked Resource (BBOE)  Initial assessment   New ventures (Sinopec JV & Cline Shale) Oil in-place Permeability 8.S.4 5.2 15.8   Rock properties Cost to develop Other U.8 2.com .

000 net acres (Net to Devon: 66. high-impact resource plays (Unrisked resource: >3 BBOE net to Devon) Gaines Dawson Borden Scurry Fisher • 2012 plans: Drill ≈40 wells • 4 operated rigs Andrews Martin Howard Mitchell Nolan Cline Shale Midland Ector Midland Glasscock Sterling Coke Cline Shale • JV acreage: 556.000 net acres (Net to Devon: 389.000 acres) • Stacked pay potential • Encouraging initial wells results Crane Upton Reagan Irion Tom Green Midland-Wolfcamp Shale • JV acreage: 94.devonenergy.com .000 acres) Wolfcamp Shale (Midland Basin) Schleicher Crockett • Well results continue to improve • Testing longer laterals (Extending to >7.Permian Basin Oil Exploration Projects Exploration Overview • Potential.000’) NYSE: DVN www.

550’  Total organic content: 1 .Cline Shale Stratigraphic Section  Organic-rich shale  Mixed silt and sand interbeds  Gross thickness: 200’ .8% Pennsylvanian Cisco Canyon Cline  Frac barriers above and below NYSE: DVN Productive Zones www.com Primary Objective .devonenergy.

000’ .10. resource play) Midland  Multiple producing zones in Wolfcamp  Drilling depth: 5.000 (Midland) NEW MEXICO OKLAHOMA 240.devonenergy.000’) NYSE: DVN www.500’ (Delaware) Wolfcamp (Midland) Diablo Platform Ozona Arch  Midland Basin results improving  Testing long laterals (Extending to >7.000 (Delaware) Unrisked resource: 1.000’ – 8.Wolfcamp Shale Emerging Opportunity Net acres: 92.500’ (Midland) 8.3 BBOE Northwestern Shelf New Mexico Texas Eastern Shelf Midland Basin TEXAS 2012 capital: ≈$225 million 2012 plans: Drill 35 wells Wolfcamp (Delaware) Central Basin Platform  Focus on Wolfcamp Midland (light oil.com .

000 net acres outside of Sinopec JV) Cowley Barber Harper Sumner Kansas Oklahoma Grant Woods Alfalfa Kay Osage High-margin.devonenergy. exploration play Early results in-line with expectations Risked resource potential: >800 MMBOE Noble Pawnee Payne Creek Logan Lincoln Major Garfield Stacked pay potential (Woodford) 7 operated rigs 2012 plans: Drill >50 wells Devon Acreage Devon/Sinopec JV Acreage NYSE: DVN www.Mississippian Light-Oil Exploration Sedgwick Kingman Net acreage: 545.com .000 (400.

com .devonenergy.Mississippian Stratigraphic Section  Multiple prolific lithologies Virgilian Missourian Desmoinesian Atokan Morrowan Chesterian Meramecian Osagean Kinderhookian Woodford Hunton Permian    High porosity chert Siliceous limestone with medium porosity Fractured limestone with lower porosity Pennsylvanian Mississippian  Significant open fractures  Woodford TOC up to 10% is a great source rock Devonian Silurian Ordovician Sylvan Viola Arbuckle Cambrian Precambrian Productive Zones Primary Objective Secondary Objective NYSE: DVN www.

Ohio Utica Overview DVN (net) Devon Acreage MI Medina Portage Summit Mahoning Ashland Richland Wayne Stark Columbiana KY IN OHIO WV VA PA NY JV (gross) Net acres: Unrisked res.000 MMBOE 640 950 $26 MM $100 MM Drill ≈15 wells Holmes Knox Coshocton Licking Guernsey Muskingum Tuscarawas Carrol Jefferson Attractive Attributes  Positive industry results to date  Conventional oil and gas area  Abundant well control Harrison Belmont Oil Rich Gas Dry Gas Approximate Thermal Maturity Windows  Favorable subsurface (TOC. 2012 capital: 2011/12 plans: 157.000 MMBOE 235.com .devonenergy. perm) NYSE: DVN www. porosity.

Ohio Utica Stratigraphic Section Queenston  Hybrid unconventional resource  Lithology consists of laminated limestone- Utica mudstone  In-situ fractures Ordovician Point Pleasant Trenton Black River Wells Creek  Frac barriers above and below (no wet zones)  Prolific source rock and reservoir  Potential upside from fractured Trenton/Black River Secondary Objective Knox Productive Zones Primary Objective NYSE: DVN www.com .devonenergy.

devonenergy.7 to 1. µD) DVN Harstine Well Barnett Shale: Marcellus: Eagleford: Bakken: nm = nanometers (Oil molecules range from 0.5 6.0 nm) Up to 30 0.7 to 1.com .3 0.3 0.3 NYSE: DVN www.2 to 0.Ohio Utica Permeability Analysis Fixed Ion Beam Scanned Electron Microscope (FIBSEM Analysis)  FIBSEM analysis enables imaging of connected pores  Significant size pores present  Indicates potential to move liquids  Top-tier permeability: Permeability (microdarcy.5 – 3.7 to 13.

000 Net acres: WYOMING 213. Greenhorn & J Sand  Favorable thermal maturity for oil generation Colorado Devon Acreage  Thick Codell sand with oil shows in core and logs www.000 JV: 100.com NYSE: DVN .000 JV: 220. Greenhorn Mowry & Muddy  Economic results in multiple intervals Laramie  Significant operational expertise in basin Larimer Weld DJ Basin Morgan Adams Arapahoe Attractive Attributes – DJ Basin  Stacked oil targets – Niobrara.000 MMBOE 320.Rockies Oil Overview DVN (net) Sheridan Campbell Crook JV (gross) Gillette Johnson PR Basin Net Acreage: DVN: 146.000 1. 2012 capital: 890 Weston Powder River Basin South Dakota UTAH $40 MM $152 MM COLORADO 2011/12 plans: Drill ≈35 wells Wyoming Converse Niobrara Attractive Attributes – Powder River Basin Platte Goshen Nebraska DJ Basin Net Acreage: DVN: 67. Frontier.330 MMBOE Unrisked res.000  Stacked oil targets – Niobrara. Turner. Codell.devonenergy.

Muddy.devonenergy. B main target across play  Viable secondary objectives: Greenhorn and J Sand Cretaceous Productive Zones Primary Objective Secondary Objective NYSE: DVN www.com .Rockies Oil Stratigraphic Section Powder River Basin Pierre Shale  Primary targets: Niobrara and Mowry  High total organic content in Mowry and Niobrara Sharon Sprgs Mbr Niobrara A Niobrara B Niobrara C Ft Hays Limestone Carlile Turner / J Sand Greenhorn Ls Frontier Graneros Shale Graneros Shale Mowry Muddy / J Sand Skull Creek Shale Dakota Sand Codell /  Secondary targets: Turner. Dakota and Frontier  Deeper Paleozoic prospective DJ Basin  Primary targets: Niobrara and Codell  Niobrara and Mowry source of significant Lower Cretaceous production  Multiple Niobrara chalk benches.

000 1.devonenergy.Tuscaloosa Overview DVN (net) Net acres: ARKANSAS MISSISSIPPI ALABAMA JV (gross) 190. existing production  Highly overpressured reservoir  Low-cost acreage Devon Acreage  Well-established regulatory environment  Existing infrastructure NYSE: DVN www. 2012 capital: $44 MM $167 MM LOUISIANA 2011/12 plans: Drill ≈10 wells Wilkinson Amite Pike Walthall Mississippi Louisiana West Feliciana Attractive Attributes Washington East Feliciana St.000 1. Helena Tangipahoa  Proven capacity to flow oil.com .730 MMBOE Unrisked res.150 MMBOE 285.

siltstone and limestone  Significant fracture system  Several historical oil pay zones throughout the stratigraphic section Washita Fredericksburg Trinity Productive Zones Primary Objective NYSE: DVN www.devonenergy.com .Tuscaloosa Stratigraphic Section Navarro Taylor Austin Eagle Ford Tuscaloosa Cretaceous Eagle Ford Group  Highly laminated lithology  Brittle intervals of sand.

Canada Exploration Oil & Liquids Opportunities  Net prospective acres: >4 million  Net unrisked resource: 2. good economics)   Cardium (Ferrier area IP’s up to 940 BOED) Second Specs (Early stages of evaluation) Montney (Light-oil exploration prospect) Ferrier Area Cardium & Second Specs (light oil) Kindersley Area Viking (light oil)   Cretaceous zones (Exploiting multistacked pay) NYSE: DVN www.2 BBOE  2012 plans: Drill 90 wells Normandville Montney (light oil)  Testing >10 new play types including:  Deep Basin Cardium (light oil) Cretaceous zones (liquids-rich gas) Viking (Shallow targets.devonenergy.com .

com .8 BBOE  Focus on oil opportunities  Targeting tight carbonates/clastics and shale  Currently evaluating 16 different exploration concepts across our existing asset base  2012 Plans: Drill ≈15 wells NYSE: DVN www.devonenergy.3 million  Net unrisked resource: 5.Other U. Exploration Oil & Liquids Opportunities  Net prospective acres: 1.S.

2012 NYSE: DVN www.devonenergy.com v.03 14jun2011 .E&P Strategic Services at Devon Strategic Geosciences Group • Sept 4.

com .E&P Strategic Services 2012 E&P Technology (May 2012) NYSE: DVN www.devonenergy.

Competencies and Roles Exploration Strategy & Evaluation (ESE) • • • • Technical/Peer review Play Evaluation & Ranking Development/Support for Evaluation process/tool Technology Pipeline Geophysical Services (GS) • • • • • Acquisition Processing Microseismic Data management • Contracts and Permitting Geodetics Integrated Geoscience (SSIG) • • • • • Reservoir Modelers Geophysical modelers Sedimentologists/petrographers Structure/Fracture Expertise Geochemistry Knowledge Management / Technology • • • • • Collaborate w/ Engineering Technology Consortia prioritized Data Management Training Petrophysics NYSE: DVN www.devonenergy.com .

Exploration Strategy and Evaluation .

Analysis is used for play ranking and as an aid for executive decision-making Facilitate consistent technical and peer reviews (UCRisk) Promote best practices and technical exchanges through reviews Maintain an up-to-date exploration play inventory NYSE: DVN www.com .Exploration Strategy Evaluation Team (ESE): Roles and Responsibilities ESE Team is responsible for unconventional play characterization and comparative play analysis across the company.devonenergy.

Integrated Geoscience June 2012 NYSE: DVN www.com .devonenergy.

com .Integrated Workflow and Knowledge Experts Technology Experts • Core Description Stratigraphy /Sedimentology • • Structure and Fractures Seismic Reservoir Characterization • • • Reservoir / Basin Modeling Petrography Geochemistry NYSE: DVN www.devonenergy.

Permeability Porosity Permeability NYSE: DVN 0.000400 0.000500 0.000000 0.000800 EURs drop significantly (>10%) if lateral lands as low as 5 feet into thinly interlayered beds that contain bioturbated intervals Non-bioturbated Pressure Decay Permeability md 0.000300 0.00 2.00 3.com .00 6.v.000600 0.00 7.devonenergy.000900 0.00 Gas-Filled Porosity % ML MF MM BIO MM-MF LS www.000100 Base of Woodford Bioturbated Possibly weakly bioturbated Hobson 1-26P Hobson 1-26P Porosity v.000700 0.00 1.Cana Woodford Example Facies Control on Production 0.001000 0.000200 0.00 8.00 5.00 4.00 9.

com .devonenergy.Cana Woodford Example Natural Fracture Production Conduits • • • • Bed-confined natural fractures likely conduits for liquids production Increase oil storage Large enough to move oil through Vertical paths of weakness for fracing Pores in kerogen at same scale as SEM image NYSE: DVN www.

Stratigraphic Flow Profile NYSE: DVN www.com .Permian Basin Wolfcamp Example Type Well Stratigraphic Flow Profile Most wells landed in zone 8-9 Additional potential identified in zone 11 Main Horiz.devonenergy. Target Potential Target 3.

devonenergy.com .Geophysical Services NYSE: DVN www.

com .Geophysical Services (GS) What We Do • Acquisition • Processing • Microseismic • Data management • Contracts and Permitting • Geodetics NYSE: DVN www.devonenergy.

devonenergy.com NYSE: DVN .371 mi2 New Seismic Methods / Evaluations – – – – – Regional Seismicity Monitoring Seismic Source Optimization – Michigan.Seismic Acquisition Highlights 2012 Seismic Acquisition Projects 3D Summary • • • • 4 4 5 4 Completed Active Planning Hold 366 790 941 275 mi2 mi2 mi2 mi2 Total 17 2. West Texas Frac Monitor with passive surface seismic – Mississippian & Cana High-Resolution 3D Depth Imaging Microseismic Evaluations www. Ohio.

com .Knowledge and Technology NYSE: DVN www.devonenergy.

com .devonenergy.Geoscience – Knowledge & Technology • Collaborate w/ Engineering Technology • Knowledge management (Communities of Practice) • Consortia management • Data Management • Training • In-house • Nautilus • Industry • Petrophysics NYSE: DVN www.

com .Knowledge & Technology Petrophysics Example • Core to Log integration • Productivity – – – – – – – – – – – Pay zones and cutoffs Permeability Thickness.devonenergy. Net to Gross Effective porosity and fluid saturations Reserves in-Place Lithology Sweet Spot identification Seismic integration Mechanical properties Reservoir modeling integration Pretty log plots • Volumetrics • Reservoir Description • Additional Categories NYSE: DVN www.

Strategic Geoscience Putting It All Together • Why “Strategic”? • Integration Essential – Across Geoscience Disciplines – Across E & P • Answer Important Questions Early – Data Gathering • Which data to gather – Technology – Experience (what do we need to know?) NYSE: DVN www.com .devonenergy.

The Devon Energy Nano Imaging Center .

Devon E&P in Unconventionals • Focused Strategy • Leverages Experience and Expertise • Takes Advantage of Unique Time in our Industry • Questions? NYSE: DVN www.com .devonenergy.

.Thank you.