Ahead of the Bell: Devon Energy discovery

Devon and Houston-based Anadarko Petroleum Corp. announced the find on Tuesday. Devon, headquartered in Oklahoma City, has a 25 percent working interest in the field. Anadarko, through a subsidiary, holds a 30 percent interest.

Analyst Rehan Rashid reiterated his "Outperform" rating for Devon with a price target of $140, noting its exploratory upside in the large oil prospects in the sub-salt deep water.

Rashid said the company has a large, low-cost production profile and a strong balance sheet with a possible 5 percent share buyback by the end of 2009.

The Brazilian well is in approximately 4,650 feet of water about 25 miles southeast from discoveries at the giant Jubarte field by Petrobras, Brazil's state-run oil company.