SM Energy plans to spend $650 million or more than 50% of its drilling and completion budget in the Eagle Ford Shale in 2013. That's net of costs carries related to its joint venture with Mitsui. The company will spend a total of $1.5 billion in 2013, with the Bakken being the second largest area of focus.
SM will operate five drilling rigs and two frack crews. Operated activity will be focused in the northern portion of the company's acreage. A total of 75 completions are expected during the year, with an inventory of 40 wells drilled, but not completed at year-end. SM also expects its non-operated partner, Anadarko, will run nine rigs and a spudder rig. Costs associated with Anadarko's drilling are being carried by SM's JV partner and are expect to last another 2-3 years before being exhausted.
Tony Best, CEO, remarked, “Our 2013 capital program positions the Company for another year of record production while generating strong returns from our key projects. The capital budget is anchored by our high return Eagle Ford and Bakken/Three Forks development programs, with additional investments being made in emerging oil programs in the Permian Basin.
Production is expected to grow approximately 20% year over year to 255-267 bcfe and then 15% in each of 2014 and 2015.Read the full press release at sm-energy.com