Well Lateral Length | Drilling / Well Results | Key Wells | IP Rates-30-Day | Forecast - Production | Drilling Activity
SM Ups 2019 Production Guidance as Wolfcamp D, Austin Chalk IP30s Impress
SM Energy Co. reported that its Q2 2019 production is exceeding expectations due to better than expected well performance, which are detailed below.
Full guidance changes can be found below the well results.
New Strong IP30s at Wolfcamp D, Austin Chalk
Dean Well Result
- The Dean test had a peak IP30 of 1,550 Boe/d with 92% oil from a ~10,350 foot lateral.
Wolfcamp D Test at Rockstar Area
- The Wolfcamp D test had a peak IP30 of 1,400 Boe/d (naturally flowing) with 80% oil from a 7,920 foot lateral.
Watston State Austin Chalk
- The Watson State Austin Chalk test had a peak IP30 of 3,200 Boe/d (three-stream) with approximately 55% liquids from a 12,875 foot lateral.
Additionally, increased drilling activity across Howard County reflects the high return potential of the area and has resulted in substantial activity around SM operations. The Company's production guidance incorporates an estimate of the effects of shut-in volumes associated with offset operator completion activity weighted to the second half of 2019.
CEO Jay Ottoson said, "We are very pleased with results to date on several well tests into new intervals, including the 30-day peak rates we are reporting today for the Wolfcamp D and Dean in the Permian Basin and the Austin Chalk in South Texas. These intervals, in addition to our recent Middle Spraberry test in RockStar, are potential catalysts to drive inventory growth and value creation from our existing footprint."
Raises Q2, Full Year Guidance
The Company is raising guidance for second quarter and full year production volumes by 0.4 MMBoe, at the mid-point, due to better than expected well performance and completion timing.
Second quarter and full year production is expected to be approximately 43-44% oil.
- Second quarter 2019 production guidance is revised upward to 12.0-12.2 MMBoe, or 132-134 MBoe/d, up from 11.5-11.9 MMBoe, or 126-131 MBoe/d. Oil as a percent of the commodity mix is expected to remain at 43-44% as both the Permian Basin and South Texas areas are contributing higher volumes.
- Full year 2019 production guidance is increased to 45.4-48.4 MMBoe, or 124.4-132.6 MBoe/d, up from 45-48 MMBoe, or 123.3-131.5 MBoe/d. Oil as a percent of the commodity mix is expected to remain at approximately 43-44%.
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