Eagle Ford Shale

SM Energy Reports Eagle Ford Shale 2011 Capital Budget

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.

St. Mary Land and Exploration - First Quarter of 2010 - Eagle Ford Shale Update

St. Mary Land and Exploration Company (SM) issued an operational update on its activities in the Eagle Ford Shale in Texas. The company has drilled 10 more wells in the Eagle Ford Shale since its last update on 2/23/2010, bringing its total operated wells to 19.

St. Mary Land and Exploration Company has completed 7 wells, and has 3 more waiting on completion. The company said that the completed wells averaged initial production rates of 2.5 million cubic feet per day, as the wells were put on constrained production until the best way to optimize production was determined.

St. Mary Land and Exploration Company said that its condensate yield per million cubic feet of natural gas was 40-60 barrels on its acreage in the Galvan Ranch area. The company also said that its natural gas liquids yield was higher than expected.

St. Mary Land and Exploration Company estimates that the cost to drill and complete wells in the Eagle Ford Shale will range between $5.5-6.0 million. The company will operate 2 rigs here during 2010.

St. Mary Land and Exploration Company has increased its capital budget for 2010 in the Eagle Ford Shale from $216 to $284 million.