http://www.swn.com/investors/Press_Releases/2014/IRDocuments2013Yea...

A total of five wells have been drilled since the Sharp well. Three of the wells, the Hollis 27-22-3 #1, the McMahen 19-21 #1-7 and the Plum Creek 13-23-2 #1, were drilled from 9 to 58 miles away from the Sharp well to test different geologic concepts which, in turn, would help to answer acreage capture decisions in 2014 and 2015. The Plum Creek well is still testing, but none of the wells have yet to reach peak 24-hour production rates of 100 barrels of oil per day. The company’s Milstead 15-22-1 #1 vertical well in Union Parish, located one mile north of the company’s Sharp well, was completed with 6 stages and is currently in the initial stages of being tested. Oil production in this well is mainly coming from the upper Brown Dense interval compared to the middle interval in the Sharp well and early flow back data indicates the oil rate is not increasing as fast as was seen the Sharp well. The company’s Plum Creek 23-22-1 #1 vertical well in Union Parish is planned to be completed with 6 stages in March. In 2013, Southwestern invested $84 million in its Lower Smackover Brown Dense exploration program and currently plans to invest approximately $178 million in 2014.

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SOUTHWESTERN ENERGY ANNOUNCES FIRST QUARTER 2014 FINANCIAL AND OPERATING RESULTS

HOUSTON, May 1, 2014 /PRNewswire

BROWN DENSE EXCERPT

New Ventures -- In the company's Lower Smackover Brown Dense project, the Sharp 22-22-1 #1 vertical well in Union Parish, Louisiana, was placed back on production in late March and is currently producing at approximately 431 barrels of oil per day and 852 Mcf of gas per day. The company's Milstead 15-22-1 #1 vertical well in Union Parish, located one mile north of the company's Sharp well, reached a peak 24-hour production rate of 28 barrels of oil per day and 161 Mcf of gas per day in April. The company's Plum Creek 23-22-1 #1 vertical well in Union Parish was completed with 9 stages in April and has just begun to flow back. In April, the company started drilling the Benson 27-22-1 #1 vertical well.

Southwestern Energy's CEO Discusses Q1 2014 Results - Earnings Call Transcript

May. 2, 2014 7:54 PM ET     Question-and-Answer Session:  Brown Dense Excerpt

Sameer Uplenchwar - Global Hunter

Good morning guys. Thanks a lot for taking my question. Quick question on trying to understand on Brown Dense, did you mentioned earlier that you’ll have a decision by 2Q or is the timing a little bit late on that and what are you expecting over there? And then the second question on new ventures you mentioned at the beginning of the call that you’re looking at other plays. Are they natural gas plays, liquids plays, and also are they in the lower 48 or internationally? Thanks a lot.

Steve Mueller - Chief Executive Officer

Let me start with the new ventures. New ventures we will roll out a couple of new plays during the year and at the moment we do that we will talk about them at that point in time. Any point in time we’re working on 8 or 9 ideas, some of those ideas are gas and some of them are liquids. So internally we don’t separate our gas and liquids. We just look at economics. And I talk people all time if we could find another Marcellus, I would love to find another Marcellus. So we don’t do anything from that perspective.

From international versus U.S. everything we’re doing right now is in North America. And I remind everyone we’ve got new (inaudible) as well. But it doesn’t mean someday we won’t be international just right now [our loving ones] are working on our North America.

Going back to the Brown Dense and one will know something. I know, I saw some things written today about well this latest well has a low rate. That’s not even the issue. The issue with the latest well is that it’s a mile away from our wells. It’s very economic and it has black oil in it. The well where we are very economic has a honey colored light liquids as you go through. When you do all the fancy work on it and try to figure out what the sources are, they came from the exact same source. The black looks like it’s water washed for those who are into those kinds of things and the other doesn’t look like it’s water washed.

So there is a very complex history in the Brown Dense and I kind of put it in the category of the bully. Sometimes I’ll tell you that when the bully comes up, the thing to do is go fight him. But you don’t want to do that too many times as you get beat up too many times if he keeps beating you up. And right now Brown Dense has beaten us up.

And so I don’t know how long we’ll take the beating. Maybe it’s a quarter, maybe it’s two quarters, but not too far out. And yet we’ve got a good well. There’s another well that the industry drill it’s good well or some wells the industry is drilling in the area, and we’ve got some more ideas, and I don’t want to go in those ideas, because they could have consequences for other plays, but we’ll continue to work on it. But we’re not going to talk much about it.

So if you notice Bill didn’t say anything about it. We had one paragraph and you’ll see in our Investor Relations, that’s kind of going back at the Investor Relations and look what it says from here on and we’ll just keep working on. If we find something good, we’ll tell you. And if not, so that’s just from the Brown Dense standpoint.

Thank you.

From the above excerpt....  The black looks like it’s water washed for those who are into those kinds of things and the other doesn’t look like it’s water washed. 

What is the significance of water washed?  

If the transcript is correct Mueller says the black oil and honey colored liquids both are very economic. 

water washed usually means heavier oil / partially bio degraded.

Would be nice to know the API gravity

The transcript is not correct. If you go back and listen to the webcast, SWN did not say that the well with black oil was very economic, only that the Sharp well is very economic.

Apparently, SWN has not released yet their transcript of the webcast, so the above transcript probably came from an entity such as Seeking Alpha, which frequently makes some serious errors in its transcripts.

For the experts out there-- Is that normal to have 9 stages on a vertical well in a 450' zone?  Are they seriously trying to break the rock with very high pressure?

As much as I hate to say it.....it sounds like SWE is about ready to wash their hands to

this brown dense play.  May 11th, I have about 2000 acres due for renewal in Union County.....also.have acreage in Union Parish that SWE wants to do seismic on and have not heard a peep since initial contact a few months back. Any opinions???????

Am in the same boat as I leased about the same acerage in Columbia County and the renewal is due in July.  Last contact I had was in Jan with a SWE landperson who  indicated that the company was trying to decide which leases they would renew.  Sounded as if not much would be released.  Have heard nothing since.

SWN posted the Sharp well production on sonris today.

What was it?  I haven't figured out Sonris yet.

564 BOPD & 1089 MCFD

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