Lower Smackover Brown Dense Play

Southwestern Energy Conference Call Comments On Lower Smackover Brown Dense Formation

Southwestern Energy (NYSE:SWN) made the following comments on the Lower Smackover Brown Dense formation during the company’s third quarter of 2012 conference call held on November 2, 2012.  The company has drilled six wells and is working on the proper well design to stimulate wells in this play.

“We've drilled and completed six wells in our Lower Smackover Brown Dense play in Southern Arkansas and Northern Louisiana. And as a reminder, from our second quarter call, we drilled Wells 4 and 5 as vertical tests to see if we would encounter the same high pressure that we saw in our third well, the BML #31-22 #1-1H.  Both vertical tests did encounter this high pressure.”

“In our fourth well, we tried several different fracture stimulation recipes, primarily involving different combinations of linear gel. And in our fifth well, we completed 3 vertical stages totaling 12 feet of preparations with white sand and slick water in the sand stages. Production from this well has stabilized at approximately 200 barrels a day and 1.2 million cubic feet of gas for the last 10 days. We're now using these wells to obtain additional log data and core samples over the formation and study the effectiveness of different fracture stimulation treatments on the contact area and to learn more about the fracture height growth. At a later date, we'll reenter these wells and turn them into horizontal wells some time in 2013.”

“Our sixth well, the Doles 30-22-1H #1, located in Union Parish, Louisiana, was drilled in September to a vertical depth of 10,673 feet with a 4,700 foot completed horizontal lateral. This well is being completed now and will begin flowing back shortly. We expect to begin selling both oil and gas from the Doles 30-22-1H #1 well and the BML #31-22 #1-1H well around the end of November, with the expectation of learning more about the decline characteristics of both wells before year end. And I can tell you we remain highly encouraged and looking forward to learning more on our path to commerciality.”

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Southwestern Energy Reports Sixth Well Into Lower Smackover Brown Dense Formation

Southwestern Energy (NYSE:SWN) has been working on the development of various plays in its New Ventures portfolio, including the Lower Smackover Brown Dense formation in Arkansas and Louisiana.

Southwestern Energy has 506,000 net acres prospective for this play and has drilled six wells to date.  The company’s first three wells were completed in early 2012 and are currently shut in.  The Johnson #21-22-1 #1 and Dean 31-22-1E #1 were drilled to vertical depths of approximately 10,500 feet in Union Parish, Louisiana.

Southwestern Energy said that these two wells found higher pressures in the Lower Smackover Brown Dense formation and the company is analyzing log data and core samples to plan a hydraulic fracture operation.  The company also plans to reenter these wells as horizontal wells in 2013.

Southwestern Energy is currently completing the Doles 30-22-1H #1 well, also located in Union Parish, Louisiana.  This well was drilled to approximately 10,673 feet with a lateral length of 4,731 feet.  The company said that this well also encountered high pressure within the Lower Smackover Brown Dense formation and is currently flowing back.

Southwestern Energy plans to put the Doles 30-22-1H #1 well and the BML #31-22 #1-1H well onto sales in late November 2012.

Southwestern Energy - Lower Smackover Brown Dense Comments - Fourth Quarter of 2011

Southwestern Energy (SWN) made the following comments about the Lower Smackover Brown Dense formation during the company’s conference call held on February 28, 2012, to discuss fourth quarter of 2011 earnings. The speaker is Steven L. Mueller, the CEO and president of Southwestern Energy.

“In our Lower Smackover Brown Dense play in southern Arkansas and northern Louisiana, we hold approximately 520,000 net acres at an average cost of $375 per acre. Earlier this month, we’ve began flowing back our first well in the area, the Roberson 18-19 #1-15H, located in Columbia County, Arkansas. This well had a vertical depth of approximately 9,369 feet and horizontal lateral length of approximately 3,600 feet and was completed in 11 stages. The lateral was landed in the lower 1/3 of the zone, and subsequent core analysis indicated this section had some of the lowest permeability in the entire interval. The well has been producing from 8 of the 11 stages, fracture stimulated. It has produced for 20 days of the originally planned 20- to 30-day cleanup period. Well production began on day 8, with the highest 24-hour rates to date of 103 barrels of oil per day, 200 Mcf per day of gas and 1,009 barrels of load water per day. 45% of load has been recovered to date.”

“Our second well, the Garrett 7-23-5H #1, located in Claiborne Parish, Louisiana, was drilled to a total depth in February 2012 of approximately 10,863 feet, with a 6,536-foot horizontal lateral. And fracture stimulations are planned to begin on March 1. Knowledge gains from the first well allowed us to drill the second well with no troubles and allowed us to target the Brown Dense drilling in the lateral and -- at no problems, allowed us to target the Brown Dense. Drilling in the lateral was not only faster, but oil shows in cuttings indicated better-quality rock.”

“We have also spud our third well, located in Union Parish, Louisiana, and is drilling at 7,900 feet. We're looking forward to learning more about this play, and our activity could increase dramatically if it is successful.”

Source: Seeking Alpha

Southwestern Energy - Lower Smackover Brown Dense Comments - First Quarter of 2012

Southwestern Energy (SWN) made the following comments about the Lower Smackover Brown Dense formation during the company’s conference call held on May 4, 2012, to discuss earnings for the first quarter of 2012.   The speaker is Steven L. Mueller, the CEO and president of Southwestern Energy

“In our Lower Smackover Brown Dense play in Southern Arkansas and Northern Louisiana, we hold leases on 540,000 net acres and have drilled 3 wells in the area. Our first well, the Roberson located in Columbia County, Arkansas, was placed on production in February, and its highest producing rate was 103 barrels a day of 36-degree API gravity oil with 200 Mcf per day of gas. The well has been shut in for pressure buildup testing in March, and we continue to perform testing on the well, which includes re-completing one stage in the heel of the well with acid last week.”

“Our second well, the Garrett located in Claiborne Parish, Louisiana, was placed on production in late March and is the highest-producing -- and its highest producing rate was 301 barrels of 52 API gravity oil with 7 -- 1.7 million cubic foot per day of gas and 2,200 barrels of flowback water. Approximately 55% of the frac's fluid has been recovered to date. All the production to date has been through casing. We finished running tubing in the well yesterday, and we'll open the well back up this morning and believe that the production will continue to increase until fluid recovery reaches somewhere around 65% of total. This should happen somewhere towards the end of May.”

“Our third well, the BML located in Union Parish, Louisiana, was drilling down to the curve in late March when we received a pressure kick which resulted in sticking the pipe. We then sidetracked the well and are currently drilling over 4,000 feet in the lateral. In our first attempt, we were drilling with 11.4 pounds per gallon mud, and during the kick, it increased the mud weight to 15.6 pounds per gallon. Data indicates the kick was an oil kick. The sidetrack is drilling with an average mud weight of 15.4 pounds per gallon. We’ll fracture-stimulate this well with approximately 30 stages later this month.”

Southwestern Energy decided to accelerate testing of the Lower Smackover Brown Dense play and has shifted additional capital towards this area and may add an additional rig here in the third quarter of 2012.

Source: Seeking Alpha