Sunday, August 2, 2009

Southwestern Energy: Q2 Update

Southwestern Energy held its second quarter earnings call last week and discussed its progress in the Haynesville Shale. The company discussed results from a couple of wells and plans for future wells. All wells noted below are in East Texas.

First, it's previously disclosed Red River 877 #1, which IP'd at 7.2 MMcf/day back in the first quarter is currently producing at 1.8 MMcf/day. This reflects about 170 days of production and is estimated to be a 3 Bcf well.

Southwestern's second Haynesville well ,Red River 164 #1, was drilled approximately five miles to the southeast of the first well and tested with a 13.4 MMcf/day initial rate. It currently produces 7.8 MMcf/day after 60 days of production. This well is estimated to be a 6 Bcf well.

A third well, Red River 619 #1 in San Augustine Co. has been drilled but has not been completed. A fourth well, Burrows Gas Unit 1H was recently spud. Southwestern expects to participate in four additional Haynesville/Bossier wells in 2009.

Southwestern leases approximately 32,800 acres. This is down from previous reports of 50,000 acres, reflecting the fact that the company has dropped some leases on the western side of its position because it wasn't really part of the Haynesville Shale.

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