Southwestern Energy (SWN) updated investors on its operational activity in the Fayetteville Shale for the second quarter of 2010. The company has 889,000 net acres under lease in the Fayetteville Shale.
Southwestern Energy put onto production 143 operated horizontal wells during the quarter. The company reported that these wells had average initial production rates of 3.449 million cubic feet per day of natural gas. This was an 8% sequential increase from the first quarter of 2010.
Southwestern Energy was producing at a rate of 1.447 billion cubic feet per day of natural gas from the Fayetteville Shale as of 7/30/2010. This was a large increase from the 990 million cubic feet per day of natural gas being produced at 7/30/2009.
Southwestern Energy is operating 24 rigs in the Fayetteville Shale, of which 16 can drill horizontally and 8 can drill vertically. The company reported that the average cost to drill a well in the Fayetteville Shale well was $3.1 million during the second quarter of 2010.