During the earnings conference of Q2 2017 financial results, Jack Bergeron, the SVP of Operations with Southwestern Energy Company (NYSE:SWN), released an operational update. He reported that in Q2 2017, the company invested around $318 million in its E&P business and posted total net production of 222 Bcf, a jump of around 9% over the first quarter of the year. This comprises a jump in company’s Appalachian Basin of 140 Bcf.
Southwestern has been continuing to advance its technical learnings and apply them across its portfolio. It has been achieving its major operating capability linked to extended laterals, completion intensity, optimized flow techniques and lateral placement. These achievements showcase a step change in how the firm is approaching well design to increase value and again establish company as a pioneer in U.S. shale gas development.
For instance, in Northeast Appalachia, the average lateral length of company’s wells has increased by more than 10% since 2015, while remaining in the targeted interval more than 90% of the time, a notable improvement from the around 75% precision back in 2015. The company completed two of these wells with average lateral lengths of more than 11,000 feet.
Bergeron mentioned that Southwestern is recording continued success with its heightened completion intensity testing through its acreage. The continuous enhancements made in core acreage positions were delivering benefits in company’s delineation testing throughout its portfolio that could bring additional value.
In Southwest Appalachia, the first firm drill of Utica well remains to perform as a major quartile well with aggregate production of more than 2 Bcf in its initial six flowing months. The well is presently working at a rate of 15 MMcfe of gas a day with a casing pressure of around 6,000 psi. Based on company’s extensive assessment, it’s estimated to remain flowing at this flat rate until sometime in 2018.