SM Energy expects its Eagle Ford condensate production will realize a long-term average discount of $7-8 to NYMEX prices. Oil production in the region averaged price realizations of 101% and 103% of WTI in the fourth quarter of 2012 and first quarter of 2013, respectively.
SM Energy’s operated Eagle Ford production grew 15% over the fourth quarter to 51,800 boe/d. That represents 74% growth over the first quarter of 2012. The company’s non-operated position (Anadarko operated) grew 3% in the quarter to an average of 16,000 net boe/d.
SM Energy’s Eagle Ford Gathering Will Be Interruptible
The company’s operated production has regularly exceeded 300 mmcfd in March and April of 2013. Firm transportation agreements are currently in place for 300 mmcfd and the company is confident there is adequate gathering infrastructure in place. Additional firm capacity will be online mid-year 2013 and the company believes current infrastructure will allow for growth in the interim.
SM ran five drilling rigs in the quarter and completed 28 wells. Anadarko ran nine rigs.
Expanding East Texas Woodbine & Eagle Ford Acreage
The company now has approximately 150,000 net acres prospective for the Woodbine and Eagle Ford in Walker, San Jacinto, Polk, and Washington counties. Watch for well test results in the second half of the year.
Read the full press release at sm-energy.com