UPDATE 1-Devon Gulf output returning, cuts output target

(Adds details on output, share price)

NEW YORK, Oct 6 (Reuters) - Devon Energy Corp (DVN.N) has restored 60 percent of the offshore oil and gas production it had shut down because of hurricanes Gustav and Ike, the independent energy producer said on Monday.

Production shutdowns from the hurricanes, as well as typhoons in the South China Sea and a shutdown at its Azeri field would cut Devon's third-quarter production to about 59 million barrels of oil equivalent, slightly below its previous forecast of 61 million boe.

It also cut its fourth-quarter production estimate to between 61 million to 62 million boe from 64 million boe because of the hurricane damage and shutdown of the Azeri ACG field.

In the Gulf of Mexico, about 30,000 oil equivalent barrels per day of its pre-storm output of 50,000 boepd output had been brought back on line, the Oklahoma City-based company said.

Another 5,000 boepd were expected to return during the fourth quarter as repairs were made to production facilities and transportation systems.

But about 1,200 boepd of output would be curtailed indefinitely after Hurricane Ike toppled platforms in the Eugene Island area, the company said.

The remaining production was expected to return over the course of 2009.

Shares in Devon were down 10.5 percent to 27.34 per share, outpacing the 6.3 percent drop in the broader Standard & Poor's Energy index .GSPE. (Reporting by Matt Daily; Editing by Derek Caney)