The company recorded a net profit of $167.5 million in the June 2011 quarter, up from the $122 million recorded in June 2010, as total natural gas and crude oil production rose to 122.8 billion cubic feet equivalent, up 25% on the June 2010 result.
Total revenue rose about 30% to $765.2 million.
Gross production from the Fayetteville shale rose to 1.8 billion cubic feet of gas per day, 400 million cubic feet per day higher than during the same quarter during the previous year, the company said.
Southwestern had placed 149 operated wells in the Fayetteville shale on production during the quarter, all horizontal wells fracture stimulated using slickwater.
The higher volumes offset a slightly higher operating cost ofr the company, with overall production growing 25%.
Company chief executive Steve Mueller said the company had had a great second quarter, with production from the Fayetteville shale its primary driver.
“However, we are also beginning to see the impact of our Marcellus Shale activities on our production, as we placed several strong wells on-line during the quarter,” he said.
The company also planned to drill its first well in Arkansas’ Columbia County in August and would spud in the third quarter, in the Lower Smackover Brown Dense formation, planning to drill to about 8900 feet with a horizontal lateral length of 3500 feet.
A second well, which was planned to spud later this year, was in Louisiana’s Claiborne Parish, going to a depth of 10,700 feet and horizontal lateral of 6000 feet.
“We plan to drill up to 10 additional wells as we continue to test the concept in 2012,” Mueller said.
“If our testing yields positive results, we expect that our activity in the play could increase significantly over the next several years."
Source: Upstream Online
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