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Permalink Reply by Skip Peel - Mineral Consultant on August 1, 2014 at 10:39

Brown Dense Excerpt from the Q&A portion of the presentation.

Drew Venker - Morgan Stanley

Good morning, everyone. I was hoping you could provide more color on the brown dents. It looks like you have lowered capital for the play in 2014. Can you just discuss what drove your decision to lower the capital spend?

Craig Owen - Chief Financial Officer

As we put out in the early part of the year we decided we would adjust the pace of the capital depending on what we were learning. We've had some well results really mixed well results early part of the year. We've just completed a well in -- just recently that produced 600 barrels a day unstimulated. The name of the well is called the Benson well. Its peak production was of 660 barrels of oil and 2 million cubic feet of rich gas. That well we just finished in the quarter and then our plan was to back up and redirect the efforts of the team to our 3D seismic project that would enable us over a 75 square mile area right around where we've been drilling to get a better picture of what we've got tied our wells both successful and unsuccessful to the rock and then proceed later on with further testing. It made a lot of sense to, based on the theories that we are chasing on how to land and where to land these vertical wells to focus on that. So it's not a real change of plan. We've just reallocated the capitol back to the company while we do the 3D. But we're very encouraged by this latest well.

Drew Venker - Morgan Stanley

I guess that’s part of the thinking of stepping back and figuring out what you have exactly on the level, as it fits it within your emerging oil program is this going to be slower pace, and then you focus on Sand Wash basin and can you discuss your strategy there.

Steve Mueller - Chief Executive Officer

I think you have to think about the whole exploration strategy and it’s really not an oil strategy per se, so some of that exploration acreage we have is on gas plays, just happen to working on some wells right now, whether it’s Sand Wash, Eastern Colorado which we are testing right now tuning 3D and ground down, and then some acreages we haven’t talked about it’s just part of our ongoing program, where in any given year we test 3, 4 ideas and try to get 10 ideas tested over a five year period of time, so in the case of the brown ins, we are little bit confused, we step back, we got back some theories, we think with some 3D, might help get rid of some of that confusion, and so that’s what’s going on there, in the case of the Eastern Colorado, we drilled a well and that’s probably make or break on that well, and we are completing that one right now and then of course Sand Wash is really in the process, so it’s just each one is a different step and different play and their exploration and efforts.

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Permalink Reply by jim weyland on August 1, 2014 at 12:19

skip,

in a prior lifetime i was, at times, standing tall for quarterly analyst earnings calls. to my great and very immature regret management never saw a need to have me speak.

i would have liked to answer an analyst's question inre: the firm's opinion as to macro north american gas market-price prospects:

"ah, sure, bill, good question; as you well know with respect to forward gas prices, it's crackers to slip a rossler the dropsey in snide."

i'd then wait for the silence. 

and, imo, they'd, collectively/individually, the analysts, be doing the math: do i question jimmy's response or respond along the lines of:

"thanks, jim, very helpful/insightful response."

i think we both know which way it'd have gone.

and, i guess there was good reason they, management, never chose to have me pipe up during quarterly calls.

jim

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Permalink Reply by Skip Peel - Mineral Consultant on August 1, 2014 at 12:27

Between the usual transcript mistakes (brown dents, brown ins) and the fractured grammar and syntax of Steve Mueller, SWN Q & A's  are often a trip down the rabbit hole.

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Permalink Reply by 1kw6x71km1v37 on August 1, 2014 at 12:56

What a pile of brown stuff.

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Permalink Reply by Mary Alison Anders on August 1, 2014 at 14:47

I felt the same way when I first listened to this. Are they ignoring us?  I don't believe so.  I heard some positive things at the 53.59 section of the SWN presentation..asked by Ryan with Morgan Stanley. It's at the end of the presentation.  Listen after that because the wrap up is uplifting.

Alison:-)

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