Southwestern Energy (SWN) reported its earnings for the second quarter of 2010, and updated investors on the company’s operations in the Fayetteville Shale. The Fayetteville Shale is a core area for Southwestern Energy as it navigates an unfavorable natural gas market.
“Our operations in Fayetteville Shale are on track as evidenced by the 32% growth in company production compared to last year and by a 9% sequential growth.”
“Our gross operating production in the Fayetteville Shale exceeded 1.4 Bcf per day, up from 990 million cubic foot per day a year ago. During the second quarter of 2010, our horizontal wells had an average completed well cost of $3.1 million per well, average horizontal length of 4,532 feet and an average time to drill to a total depth of 13 days from re-entry to re-entry.”
“Our Fayetteville Shale wells placed on production during the second quarter of 2010 averaged initial production rates of 3,449,000 cubic foot per day, up 8% compared to the first quarter.”
"We continue to test tighter well spacing and at June 30 had placed over 430 wells on production that have well spacing of 700 feet or less, representing approximately 65 acre spacing or less. Recent information from these larger groups of wells indicate interference of 5% to 8% compared to earlier estimates of 10% to 15% from a smaller well set.”