Devon Energy Obtains Approval for Second Jackfish Oil Sands Production Project

Devon Energy Obtains Approval for Second Jackfish Oil Sands Production Project

Devon Energy Corporation announced today that it has received regulatory approval for the company’s second oil sands project in Canada. Construction of the 100 percent Devon-owned Jackfish 2 project will begin immediately.

Once fully operational in 2012, Jackfish 2 will produce about 35,000 barrels of oil per day through a recovery method known as Steam Assisted Gravity Drainage, otherwise known as SAGD. Over the life of the project, Devon expects to recover about 300 million barrels of oil from Jackfish 2.

Devon president John Richels called Devon’s oil sands operations a key asset in the company’s North American portfolio.

“We are very pleased to have approvals in hand so we can move forward with our second SAGD project,” Richels said. “The Canadian oil sands are an important resource we need to tap into to meet the future energy needs of North America. Through the use of SAGD technology, we believe we can access the resource in a way that is efficient and environmentally responsible.”

Devon is currently ramping up production at its original Jackfish project. Jackfish, which commenced operations in 2007, is expected to reach its full production capacity of 35,000 barrels of oil per day in the first half of 2009. Jackfish is about four miles east of the Jackfish 2 site in northeastern Alberta.

Devon is the only U.S. independent with active operations in the oil sands, and it is among the first in the industry to use SAGD technology. The innovative method allows production from reservoirs that are too deep for conventional mining operations.

The in-situ or “in place” recovery method is used to produce bitumen through wells similar to conventional oil wells. Steam injected into the reservoir heats the thick oil allowing it to flow to the surface.

In-situ production methods such as SAGD will play a major role in the oil sands’ long-term future. While this vast oil resource is second only to Saudi Arabia in size, about 20 percent of the resource is accessible through mining. Recovery of the remaining 80 percent will require in-situ production methods such as the SAGD technology used at Jackfish.

In addition to its operational advantages, SAGD requires less surface disturbance per unit of production when compared with other conventional methods of oil production. This minimizes environmental disturbance caused by the project.

Devon has been a proactive environmental steward through its development of Jackfish. In May 2008, Devon was honored with the Canadian Association of Petroleum Producers President’s Award for Stewardship Excellence at Jackfish. The award recognized Devon’s commitment to water conservation. Jackfish is the first SAGD project to use 100 percent saline water to facilitate the production process.

Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is the largest U.S.-based independent oil and gas producer and is included in the S&P 500 Index. For additional information, visit

Share this post