PRESS RELEASE - Devon Energy/Santa Fe Energy Resources announces two Indonesian discoveries

Devon Energy Corporation (Amex: DVN; Toronto: NSX) today reported exploration discoveries on Sumatra and Salawati Island in Indonesia. The company also disclosed progress on a formal agreement to sell natural gas from its Sumatran blocks into Singapore.

The Sumatran discovery

The new well, the North Gemah-1, makes the seventh consecutive exploration well to be completed as a producer and the fiftieth successful well of 51 total wells to be completed on the Jabung block to date. The well, drilled to a total depth of 6,801 feet, tested a new geologic structure having a hydrocarbon column in excess of 700 feet. The well flow tested at combined rates of 29 million cubic feet per day (MMcfd) of natural gas and 1,000 barrels per day of condensate from selected zones. The average CO2 content was 30 percent.

Santa Fe Energy Resources (Jabung) Ltd., a Devon Energy subsidiary, operates the Jabung block with a 30 percent working interest. Other partners include Amerada Hess (Indonesia-Jabung) Ltd. with 30 percent, Kerr-McGee Sumatra Ltd with 30 percent and Pertamina EP with 10 percent.

The Salawati Island discovery

Devon also announced the successful completion of the wildcat KOI-1 well on its Salawati Island block offshore Irian Jaya. Devon Energy holds a 33 1/3 percent participation interest. The well was drilled to a depth of 4,523 feet in 105 feet of water. It tested at combined rates in excess of 900 barrels of oil per day and 2.5 MMcfd of gas per day from two intervals. The well is located approximately 25 miles offshore from the company's operating base in Irian Jaya. This well expands the offshore exploration potential in the area of the existing TBA and TBC discoveries. Other partners on the block are CIECO Salawati, Inc.; MOECO Salawati, Inc.; COPAREX Indonesia B.V.; American Energy Ops, Inc. and Reilly Interests. Devon has entered into negotiations to sell the Salawati Island and Salawati Basin blocks.

New progress on the Gas Sales Agreement

Pertamina and Gas Supply Private Limited, a wholly owned subsidiary of PowerGas Ltd, recently announced the execution of a Memorandum of Intent relating to the Gas Sales Agreement for the supply of natural gas to Singapore from Sumatra. The gas would be supplied from three production sharing contracts (PSCs) in Sumatra including the Jabung Block PSC. Also included will be the Jambi B block in which Devon Energy Corporation holds a 30 percent working interest. Together, the three PSCs would be contracted to supply 150 MMcfd of gas beginning in 2003. By 2008, the terms call for an increase to a peak rate of 350 MMcfd. The Gas Sales Agreement would provide for a contract period that extends over twenty years.

"Though not yet executed, the recent initialing of the Gas Sales Agreement represents another step forward in plans for exporting gas from Sumatra to Singapore," reported Duane Radtke, President of Devon International.

Devon Energy Corporation is an independent energy company engaged in oil and gas property acquisition, exploration and production. Devon ranks among the top five U.S.-based independent oil and gas producers and is included in the S&P 500 Index. Approximately 76 percent of the company's proved reserves are located in North America. Also, Devon has significant international operations in Azerbaijan, Southeast Asia, South America and West Africa. Shares of Devon Energy Corporation trade on the American Stock Exchange under the symbol DVN. Devon's exchangeable shares (resulting from Northstar, Devon's wholly-owned Canadian operating unit) trade on the Toronto Stock Exchange under the symbol NSX.

For further information: Zack Hager, Investor Relations of Devon Energy Corporation, 405-552-4526 (*)