by Lance Turner
Posted 11/8/2012 10:42 am
Updated 6 months ago
When Arkansas Business last checked into the Lower Smackover Brown Dense formation in September, preliminary test results from new wells looked promising. But according to the latest reports from the area's biggest player, publicly traded Southwestern Energy Co., the picture now seems mixed.
As Arkansas Business news partner THV 11 News reported Wednesday night, activity surrounding Brown Dense has slowed on the Arkansas side of the state's border with Louisiana. Of the company's six wells in the Lower Smackover, only one, the Robertson well, is in Arkansas. The well once had a peak day of 103 barrels of oil but hadn't achieved that level since. According to THV's report, it has since been taken offline.
The company's activities now center on Union Parish, La., where Southwestern plans to start producing and selling oil soon from two wells. Still, energy execs are still taking a wait-and-see attitude toward what local residents hope will be a second oil boom:
CEO Steven Mueller says getting longer-term production data is key to moving forward with Brown Dense. In last week's teleconference, he referenced one benchmark, saying they'd need 425 barrels of oil a day for a $12 million well to make it profitable. Previous testing results THV 11 News obtained in company reports showed 24-hour peak producing rates, ranging from 103 barrels a day to 421.