by Luke Jones
Posted 12/21/2012 08:44 am
Updated 2 years ago
Southwestern Energy Co. of Houston has stated it will spend less money on its Fayetteville Shale assets in 2013.
According to its capital guidance for 2013, the company expects to spend about $830 million in the Fayetteville Shale in 2013, compared to a little more than $1 billion in 2012. The company estimates its total capital investments to fall as well, from about $2.1 billion to $1.9 billion.
Southwestern stated it would drill almost 400 wells in the Fayetteville Shale in 2013, compared to 553 in 2012. Net wells in the Fayetteville Shale will decrease from 367 to between 315 and 325.
"In the Fayetteville Shale, we will continue to drive our costs and drilling time down as our newly acquired frac fleets become operational and our target is to invest within cash flow," CEO Steve Mueller said in the guidance release.
The company said it would increase production from its next largest project, the Marcellus Shale in Pennsylvania, and would "continue to pursue the commerciality" of its project in the Brown Dense formation in southern Arkansas. The latter would mean drilling up to nine more wells in the Brown Dense, the release stated.