Lower Smackover Brown Dense Play

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