SM Energy (SM) has established a drilling capital budget of $830 million to develop oil and gas properties in 2011, with $35 million, or 4% devoted to the company’s properties in the Haynesville Shale. The company has 22,000 net acres in the Shelby Trough area of Texas.
SM Energy will use this capital for five gross operated horizontal wells in 2011, and another 20 gross horizontal wells operated by its partner in the Haynesville Shale. This will not be enough to hold its acreage in the play as twelve additional gross wells would have to be drilled in 2011 and eight gross wells in 2012 to convert the company’s Haynesville Shale acreage from term to held by production.
Comments