Replies to This Discussion

Permalink Reply by ALongview on October 29, 2009 at 11:14

Very nice wells in the southern part of this play on the Texas side. Thanks jffree1.

Permalink Reply by jffree1 on October 29, 2009 at 11:46

You're welcome. I'm excited for folks in San Augustine County!

Permalink Reply by Cheerleader on October 29, 2009 at 16:56

Thanks Jffree1!!!

Permalink Reply by DJG on October 30, 2009 at 4:55

For anyone who is interested, here is the link for the Southwestern's conference call today:

http://www.videonewswire.com/event.asp?id=62436


And the associated October Investor's report:

http://www.swn.com/investors/LIP/latestinvestorpresentation.pdf

Permalink Reply by Les Bamburg on October 30, 2009 at 5:20

Southwestern says they are currently drilling a Mid-Bossier Shale test.

Permalink Reply by jffree1 on October 30, 2009 at 6:23

Oh, now I have to go listen to the call... Thanks Les.

Permalink Reply by jffree1 on October 30, 2009 at 7:20

The Middle Bossier well drilling now is the Red River 257 #2.

When asked about the higher IP's in this area as compared to the rest of East Texas, the response was that the geology is a bit different here and that the shale appears to be a bit more brittle with higher carbonate content which they think is contributing with more natural fractures and is responding with better fracks.

Maybe one of our geologist members can explain how the carbonate content of the shale could make a difference as, I'm sure I don't know but, I am immensely interested.

Permalink Reply by Cheerleader on October 30, 2009 at 9:41

Thank sounds positive to me but I would also like to hear from a geologist.

Permalink Reply by DJG on October 30, 2009 at 7:17

In the call it seems to infer that the Red River 257 #2 is the Mid-Bossier test.

Permalink Reply by jffree1 on October 30, 2009 at 7:36

That's what I got too.

Permalink Reply by RBH on October 31, 2009 at 14:29

can also get written SWN conference call 10/30/2009
www.seekingalpha.com

http://seekingalpha.com/article/170239-southwestern-energy-co-q3-20...

Permalink Reply by RBH on October 31, 2009 at 14:32

from seeking alpha 10/30/200-9 swn:
I will now move onto our Haynesville Shale activity where we are continuing to see encouraging results. The first horizontal well in our 50/50 joint venture targeting the Haynesville/Bossier Shale in Shelby and San Augustine counties, Texas, the Red River, 877 number one, reached total depth in the fourth quarter of 2008. This well with a completed lateral link of 2,718 feet was production tested at a rate of 7.2 main cubic foot per day in the first quarter of 2009.

The second horizontal well, the Red River 164 number one was drilled approximately five miles to the southeast and reached a total [measured] depth of 17,124 feet with a 3,800 foot horizontal lateral. It was production tested 13.4 million cubic foot per day in the second quarter.

We have completed a third well; the Red River 619 number one located in San Augustine County with a measured depth of 17,244 feet and a lateral of 4,000 feet. This well was production tested in the third quarter at 16.7 million cubic foot per day.

Our fourth well, the Burrows Gas Unit 1-H is currently being tested. A fifth well, the Red River 257 number one is waiting on completion. And finally, we're currently drilling our sixth well, the Red River 257 number two which is targeting the middle Bossier both located in San Augustine County. Our total production from the Haynesville is currently approximately [34.7] million cubic foot per day gross or 10.2 million cubic foot per day net.

As far as the well costs, our initial wells were well over $10 million. The last two are going to be in the $9 million to $10 million range. And we think we can get around $9 million wells. I don't know, maybe a little bit less than that. That's kind of what we are targeting for well costs in the Haynesville and we're not too far from that. As far as I am not sure, what we're targeting. We're trying to learn about what the URs could be. We don't have enough production to say for sure, but with the production we have on say that 13 million a day well, that's one that's got a little bit of time line. It's got three months or so on it. That looks like it is going to be in a 5 Bcf range, give or take. And that's using tight curves that the rest of the industry has because again we don't have enough data right where we're at.