Posted 8/5/2014 10:50 am
Updated 1 month ago
Southwestern Energy Co. of Houston said last week that its natural gas wells in central Arkansas’ Fayetteville Shale Play and the Northeast United States’ Marcellus Shale have continued to outpace expectations in the second quarter.
The company, which reported quarterly earnings on Thursday (PDF), announced a record well initial production rate of 14 million cubic feet (MMcf) per day in the Fayetteville play.
"Our results this quarter are helping to pave the way for another record year in 2014," Southwestern President and CEO Steve Mueller said in a news release. "Our production grew 18 percent, and our wells in both the Fayetteville and Marcellus projects continue to perform better than expected."
Southwestern said that during the first six months of 2014, it invested about $1.2 billion in its exploration and production business, including $450 million in the Fayetteville Shale.
During the quarter, Southwestern placed 147 new wells on production in the Fayetteville Shale, resulting in net gas production of 124 billion cubic feet (Bcf), compared to 121 Bcf in the second quarter of 2013. Gross operated gas production in the Fayetteville Shale was about 2,073 MMcf per day at June 30.
Southwestern said it continues to test the Upper Fayetteville formation, drilling 45 wells there to date. It said six of the wells had an average initial production rate more than 4 million cubic feet of gas per day, with the highest initial production rate being 6.3 million cubic feet of gas per day. The company plans to drill and complete five additional Upper Fayetteville wells later in the year.