SM Energy (SM) issued an operations update for the second quarter of 2010 on its activities in the Williston Basin where the company is involved in developing its acreage that is prospective for the Bakken Shale.
SM Energy recently completed the Johnson 16-34H well, located in McKenzie County, North Dakota. The Johnson 16-34H was drilled with a 9,500 foot lateral and completed with a ten stage hydraulic fracturing operation. This Bakken Shale well cost $5.6 million and reported 7 day average production of 680 barrels oil equivalent per day, and 30 day average production of 700 barrels oil equivalent per day.
SM Energy will drill 19 gross wells here in 2010, up from previous estimates of 17 gross wells. The company is allocating an extra $37 million in capital for the Bakken Shale.