FILED BY DEVON ENERGY CORPORATION
                           PURSUANT TO RULE 425 UNDER THE SECURITIES ACT OF 1933
                                        AND DEEMED FILED PURSUANT TO RULE 14a-12
                                          OF THE SECURITIES EXCHANGE ACT OF 1934
                            SUBJECT COMPANY: MITCHELL ENERGY & DEVELOPMENT CORP.
                                                   COMMISSION FILE NO. 333-68694

[DEVON ENERGY LETTERHEAD]



                                  NEWS RELEASE
--------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE

MEDIA CONTACTS:      VINCE WHITE
                     VP COMMUNICATIONS AND INVESTOR RELATIONS
                     (405) 552-4505

INVESTOR CONTACTS:   ZACK HAGER
                     MANAGER, INVESTOR RELATIONS
                     (405) 552-4526


          DEVON ENERGY ANNOUNCES ACCEPTANCE OF TENDER OFFER BY ANDERSON
                            EXPLORATION SHAREHOLDERS


OKLAHOMA CITY, OKLAHOMA, OCTOBER 12, 2001 -- Devon Energy Corporation (AMEX:
DVN; TSE:NSX) announced today the acceptance of its C$40.00 per share cash
tender offer for Anderson Exploration Ltd. (TSE:AXL; NYSE:AXN) by Anderson's
shareholders. The offer commenced on September 6, 2001 and expired today, as
scheduled, at 1:01 a.m. (Calgary, Alberta time). Devon also announced that it
has received all necessary regulatory approvals concerning the acquisition of
Anderson.

A total of 128 million of Anderson's shares were tendered under the offer. This
represents approximately 97 percent of Anderson's total shares outstanding.
Devon intends to take up the tendered shares and pay the depository on Monday,
October 15, 2001. Devon intends to acquire the remaining shares of Anderson by
compulsory acquisition for C$40.00 per share in cash.

"We warmly welcome to the Devon family those employees from Anderson who will be
joining us," said J. Larry Nichols, Devon's Chairman, President and CEO. "As
Canada continues to grow in importance as a supplier of natural gas, Devon will
be well positioned to participate in that growth."

Devon Energy Corporation is an independent energy company engaged in oil and gas
exploration, production and property acquisitions. Devon ranks among the top
five U.S.-based independent oil and gas producers and is included in the S&P 500
Index. Shares of Devon Energy Corporation trade on the American Stock Exchange
under the symbol DVN. Devon's



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exchangeable shares (resulting from Northstar, Devon's wholly-owned Canadian
operating unit) trade on The Toronto Stock Exchange under the symbol NSX.

             NOTICE TO INVESTORS CONCERNING DEVON'S PLANS TO ACQUIRE
                                 MITCHELL ENERGY

Investors and security holders are advised to read the definitive joint proxy
statement/prospectus that will be included in the Registration Statement on Form
S-4 filed with the Securities and Exchange Commission in connection with the
proposed transaction because it will contain important information. A
preliminary joint proxy statement/prospectus has been filed with the SEC by
Devon and Mitchell. Investors and security holders may obtain a free copy of the
joint proxy statement/prospectus and other documents filed by Devon and Mitchell
with the SEC at the SEC's web site at www.sec.gov. The definitive joint proxy
statement/prospectus and such other documents (relating to Devon) may also be
obtained for free from Devon when they become available by directing such
request to: Devon Energy Corporation, 20 North Broadway, Suite 1500, Oklahoma
City, Oklahoma 73102-8260, Attention: Investor Relations, telephone: (405)
552-4570, e-mail: judy.roberts@dvn.com. The definitive joint proxy
statement/prospectus and such other documents (relating to Mitchell) may also be
obtained for free from Mitchell when they become available by directing such
request to: Mitchell Energy & Development Corp., 2001 Timberloch Place, The
Woodlands, Texas 77380, Attention: Investor Relations, telephone: (713)
377-6625, e-mail: mndpr@mitchellenergy.com.

Devon, its directors, executive officers and certain members of management and
employees may be considered "participants in the solicitation" of proxies from
Devon's shareholders in connection with the transaction. Information regarding
such persons and a description of their interests in the transaction is
contained in Devon's Proxy Statements and Annual Reports on Form 10-K filed with
the SEC. Additional information regarding the interests of those persons may be
obtained by reading the definitive proxy statement/prospectus when it becomes
available.

Mitchell, its directors, executive officers and certain members of management
and employees may be considered "participants in the solicitation" of proxies
from Mitchell's shareholders in connection with the transaction. Information
regarding such persons and a description of their interests in the transaction
is contained in Mitchell's Proxy Statements and Annual Reports on Form 10-K
filed with the SEC. Additional information regarding the interests of those
persons may be obtained by reading the definitive proxy statement/prospectus
when it becomes available.

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