East Texas | Southwestern Energy

Southwestern Energy Company was a newcomer to East Texas in 2000 when it purchased nearly 11,000 acres in the Overton field. At that time, 16 wells were producing a modest 1.8 MMcf per day. By applying the principles of the company’s Formula for Success, employees used new drilling and completion techniques to yield outstanding results. Over the next eight years, the company drilled and completed over 400 wells producing more than 100 billion cubic feet of gas and developed more than 400 billion cubic feet of gas reserves. Southwestern’s opportunities in East Texas continue to expand in the Angelina River Trend area’s James Lime, Pettet, Travis Peak, Cotton Valley, and Haynesville/Bossier Shale formations.
At December 31, 2010, Southwestern had approximately 328 Bcfe of reserves in East Texas. Net production from East Texas was 34.3 Bcfe in 2010.
In 2010, the company sold certain oil and natural gas leases, wells and gathering equipment in East Texas for approximately $357.8 million to Exco Resources, Inc. The sale included only the producing rights to the Haynesville and Middle Bossier Shale intervals in approximately 20,063 net acres. The net production from the Haynesville and Middle Bossier Shale intervals in this acreage was approximately 13.5 MMcf per day and proved net reserves were approximately 55.4 Bcf when the sale was closed in June 2010.
In the second quarter of 2011, Southwestern sold certain oil and natural gas leases, wells and gathering equipment in Shelby, San Augustine and Sabine Counties in East Texas for approximately $108.1 million, before customary purchase price adjustments. This divestiture included only the producing rights to the Haynesville and Middle Bossier Shale intervals in this acreage with net production of approximately 7.0 MMcf per day as of May 25, 2011 and proved net reserves of approximately 25.1 Bcf at December 31, 2010.
In 2011, Southwestern expects to invest approximately $65 million participating in approximately 5 gross wells. In 2012, Southwestern plans to reduce the amount of investments in the East Texas to approximately $10 million.

Last Updated on 12/21/2011