Southwestern Energy Co., Houston, (NYSE: SWN) reports for the first six months of the year the company placed a total of 231 operated wells on production in the Fayetteville shale play, all of which were horizontal wells fracture stimulated using slickwater.
As of June 30, the company's gross production rate from the Fayetteville play was approximately 990 million cubic feet of gas per day, up from approximately 500 million cubic feet per day a year ago. During the second quarter, Southwestern placed 111 wells online with an average initial production rate of 3.6 million cubic feet per day and a 30-day average of 2.95 million cubic feet per day.
The company currently has 17 drilling rigs running in its Fayetteville play area, 13 that are capable of drilling horizontal wells and four smaller rigs that are used to drill the vertical portion of the wells. The company currently expects its gross well count in the play during 2009 to be approximately 575 wells (75% operated).
During the second quarter, Southwestern’s horizontal wells had an average completed well cost of $2.9 million per well, average horizontal lateral length of 4,123 feet and average time to drill to total depth of 11 days from re-entry to re-entry. This compares to an average completed well cost of $3.1 million per well, average horizontal lateral length of 3,874 feet and average time to drill to total depth of 12 days from re-entry to re-entry in the first quarter of 2009.
As of June 30, Southwestern held approximately 879,000 net acres in the play area (including 125,372 net acres in the traditional Fairway portion of the Arkoma Basin).
Southwestern executive chairman Harold Korell says, “We continue to make significant progress in the development of our Fayetteville shale play every quarter, and the second quarter was no exception. Our gross operated production from the Fayetteville Shale reached a significant milestone of 1 billion cubic per day in July, compared to approximately 500 million cubic feet per day this time a year ago. The productivity of our wells also continues to improve as we learn more.”
Southwestern has oil and gas assets in Arkansas, Oklahoma and Texas.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Third Week in a Row, Baker Hughes Says
2024-08-30 - The rig count is 8% below this time last year, according to Baker Hughes.
Helix Awarded Vessel Service, Charter Contracts Off Brazil
2024-08-28 - Helix Energy Solutions Group was awarded new three-year charter and service contracts, valued at an estimated $786 million, from Petrobras for Siem Helix 1 and Siem Helix 2.
Shell, Akselos Enter Enterprise Deal for Structural Performance Management
2024-08-28 - Shell Information Technology International will leverage Akselos’ structural performance management software to monitor the health and lifecycle of Shell’s critical assets in Qatar, Canada, the Gulf of Mexico and elsewhere.
From Exxon to APA, E&Ps Feel Need to Scratch Exploration Itch
2024-08-27 - Exxon Mobil is looking for its “next Permian,” which an executive said could be in Algeria.
E&P Highlights: Aug. 26, 2024
2024-08-26 - Here’s a roundup of the latest E&P headlines, with Ovintiv considering selling its Uinta assets and drilling operations beginning at the Anchois project offshore Morocco.