SM Energy Co., Houston, is increasing its production guidance by 400,000 boe, all in the second quarter, after accelerating completion activity by 11 wells in its Eagle Ford program.
The firm has completed 31 wells in its Eagle Ford program year-to-date, and its current full-year plan is to complete 39 wells. Production guidance is revised to 10.7-11.1 million boe for the second quarter and 43.2-46.2 million boe for the full year.
“Due to the favorable terms and performance under our pumping services agreement for the Eagle Ford, we are pleased to accelerate this activity, which we believe will result in higher cash flow and capital cost savings in 2017,” commented Jay Ottoson, SM Energy president and chief executive officer.
In Howard County, Tex., the firm’s Viper 14-9 1WA well, with a 10,400-ft lateral drilled in the Wolfcamp A, has produced more than 1,000 boe/d with 92% oil during completion flowback with oil rates still increasing.
“It will be some time yet before we have a 30-day peak rate for this well, but this is clearly an encouraging early indication of productivity,” said Ottoson.