Devon Energy Corporation announced today the commencement of production from its Polvo oil field in Brazil. Polvo was discovered in 2004. It is located on block BM-C-8 in the Campos Basin offshore Rio de Janeiro in approximately 300 feet of water. Gross production is expected to peak by the end of 2008 at approximately 50,000 barrels of oil per day.

Production facilities include a fixed production and drilling platform connected to a floating production, storage and offloading vessel (FPSO). First sales are expected to begin in October when the initial shipment of oil will be offloaded from the FPSO and transported to market.

"Development of the Polvo discovery was a significant engineering project carried out efficiently within a rapid three-year discovery-to-production cycle time," said Stephen J. Hadden, senior vice president of exploration and production. "The project is expected to contribute about 26,000 barrels per day in 2008 to Devon's continuing production growth forecast. With Polvo and nine additional offshore leases, we have a solid future in Brazil with potential for additional discoveries."

Polvo has estimated resource potential in excess of 50 million barrels. Devon is the operator of the BM-C-8 development with a 60 percent interest. SK Corporation of Korea holds the remaining 40 percent interest.