Saturday, December 19, 2009

Southwestern: 2010 Capital Budget

Southwestern Energy announced its 2010 capital budget this week.  The company, which mostly focuses on the Fayetteville Shale, will spend $2.1 million in capex in the coming year, up from $1.8 billion in 2009.  Of that amount, $1.7 million will be spent on E&P, the lion's share going to Arkansas.  Of the E&P budget, $230 million will be spent on the company's properties in east Texas, up from $160 million in 2009.  That budget should allow for 50-60 gross wells in E. TX (25-30 net).  Of the gross wells, 21-26 should be in the Haynesville or Mid-Bossier Shale, while the remaining 29-34 will be in the James Lime formation. 

While it's not a huge budget, it's nice to see some increased capital spending.  We look forward to reporting some new Southwestern completions, even perhaps some in the Mid-Bossier Shale.

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