Fayetteville Shale | Southwestern Energy

Southwestern Energy Company discovered the economic viability of the Fayetteville Shale and was the first company to drill and successfully produce its natural gas. We are the largest gas producer in the Fayetteville Shale with gross operated production of approximately 1,188 MMcf per day as of February 20, 2010. In 2009 Southwestern placed a total of 500 operated wells on production in the Fayetteville Shale play, all of which were horizontal wells fracture stimulated using slickwater. Southwestern continued to improve its drilling practices in the Fayetteville Shale play in 2009. The company’s horizontal wells had an average completed well cost of $2.9 million per well, average horizontal lateral length of 4,100 feet and average time to drill to total depth of 12 days from re-entry to re-entry. This compares to an average completed well cost of $3.0 million per well, average horizontal lateral length of 3,619 feet and average time to drill to total depth of 14 days from re-entry to re-entry during 2008. Southwestern also continued to improve its completion practices, as wells placed on production during 2009 averaged initial production rates of 3,478 Mcf per day, up 25% from average initial production rates of 2,777 Mcf per day in 2008. The company has 22 drilling rigs running in its Fayetteville Shale play area, 16 that are capable of drilling horizontal wells and 6 smaller rigs that are used to drill the vertical portion of the wells.
Southwestern engages in gas gathering activities in Arkansas primarily related to the development of its Fayetteville Shale play. In 2009, the company invested approximately $214.2 million related to these activities and had gathering revenues of $205.6 million, compared to $183.0 million invested and revenues of $114.9 million in 2008. Southwestern is rapidly expanding its network of gathering pipelines and facilities throughout the Fayetteville Shale region. During 2009, the company gathered approximately 367.3 Bcf of gas volumes in the Fayetteville Shale play area, including 26.9 Bcf of third-party natural gas compared to approximately 208.3 Bcf of gas volumes in the Fayetteville Shale play area, including 23.8 Bcf of third-party natural gas during 2008. At the end of 2009, Southwestern had approximately 1,137 miles of pipe from the individual wellheads to the transmission lines and compression equipment had been installed at 48 central point gathering facilities in the field. At December 31, 2009, the company’s midstream segment was gathering approximately 1,304 MMcf per day through 1,137 miles of gathering lines in the Fayetteville Shale play area.
In 2010, Southwestern’s program in the Fayetteville will continue to focus on optimizing well spacing and completion technique. The company plans to invest approximately $1.2 billion in its Fayetteville Shale play, which includes participating in approximately 650 to 680 gross wells, 475 to 500 of which are planned to be operated by us.

Last Updated on 03/01/2010