Zach Ponce | The Carslbad Current-Argus
ARTESIA — Devon Energy added 22 new wells in the Bone Springs oilfield between April and June, a sign that the oil and gas company headquartered Oklahoma City is ramping up its production in Southeastern New Mexico.
Additional pumping in the area located in the northeastern portion of Eddy County averaged 660 barrels of oil per day, which “exceeded expectations,” said a company report. That helped Devon Energy post second quarter net earnings of $675 million this week when it released its financial report.
Tim Hartley, a Devon Energy spokesman, said the company expects to continue its expansion in Southeastern New Mexico and increase production in the last two quarters of 2014.
“I’m very impressed,” said Cathrynn Brown, a state representative from Carlsbad. “(Devon) definitely is a foundation company. I think (Devon) is a wonderful employer and we wish them success.”
The Permian Basin, spanning Southeastern New Mexico and West Texas, ranked second in oil production for Devon’s operations behind only the Barnett Shale play in Central Texas. The Permian Basin averaged a record net production of 95,000 barrels of oil per day for the second quarter, a 25 percent increase compared with the second quarter of 2013.
Devon Energy also began production on two high-rate oil wells targeting the Delaware Sands in Lea County. Initial production averaged about 1,000 barrels of oil per day, 70 percent of which was light oil.
Devon currently employs around 200 workers in Southeastern New Mexico, most of whom are based out of the company’s main office in Artesia. Devon also operates field offices in Carlsbad, Loco Hills, and Del Rey, Texas to support its field crews.
Hartley said the company is currently hiring to fuel the expansion and expects to grow its employee total over the same timeframe.
State Rep. Bill Gray, R-Artesia, said Devon Energy has been great for his town.
“I think they’re not only just an outstanding company, but they’re good corporate citizens,” he said. “They give back to the community, they’re benevolent, and they’re just growing by leaps and bounds.”
Reporter Zack Ponce can be reached at (575) 689-7402.