Friday, May 1, 2009

Southwestern Energy: Update

Southwestern Energy is best known for its position in the Fayetteville Shale, but it also has about 41,500 acres in East Texas. In a recent earnings announcement, the company gave some insight on its plans for the Haynesville Shale.

From the release: "In the second quarter of 2008, Southwestern signed a 50/50 joint venture agreement with a private company to drill two wells targeting the Haynesville/Bossier Shale intervals in Shelby and San Augustine Counties, Texas. The first horizontal well, the Red River 877 #1 located in Shelby County, reached total depth in the fourth quarter of 2008, was production tested at 7.2 MMcfe per day in the first quarter of 2009 and is currently producing approximately 3.0 MMcf per day. The second horizontal well, the Red River 164 #1, has reached total depth and it is expected to be completed and tested in the second quarter of 2009. Pending further results from these wells, the company may invest more capital in the Haynesville/Bossier Shale play than previously planned."

It's nice to hear that they find the Haynesville Play attractive, and it's always good to hear about increased spending in the play.

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