SM Energy (SM) announced that the company will spend $830 million in drilling capital in 2011 on its various properties in the United States. The company will spend $500 million or 60% of these funds to develop properties in Texas that are prospective for the Eagle Ford Shale.
SM Energy has 165,000 net acres in Webb and LaSalle Counties in Texas and plans to operate two rigs on this acreage starting in January 2011 and eventually increase to four operated rigs. The company will target acreage that have wet gas and condensate and focus on the Briscoe and Galvan Ranch areas.
SM Energy is also involved in a joint venture with Anadarko Petroleum (APC) on a 84,500 net acre portion of the Eagle Ford Shale. Anadarko Petroleum is operating seven rigs in this joint venture and will average ten operated rigs in 2011.