SM Energy (SM) issued an operations update for the first quarter of 2011 and disclosed additional information on its activity in the Eagle Ford Shale in Texas. The company has its own operated acreage in the play and is also involved in a joint venture on a non operated basis with Anadarko Petroleum (APC).
SM Energy is operating three rigs in the play on its operated acreage and plans to increase this to six rigs by the end of 2011. The company is focused on areas of the Eagle Ford Shale that have a high content of condensate and natural gas liquids.
SM Energy reported average daily production from the operated section of the Eagle Ford Shale of 91.6 million cubic feet of natural gas equivalents in the first quarter of 2011. The company plans to drill 80 gross or 70 net wells in 2011, with current costs to drill and complete an Eagle Ford Shale ranging from $6.5 million to $7 million.
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