As of December 31, 2012, SWN had 3.8 million of net acreage dedicated for the new venture projects.
Lower Smackover Brown Dense play
Southwestern currently has 475,000 net acres in the Lower Smackover Brown Dense play, which it acquired at a total cost of $419 per acre. In the play, the company’s targeting oil and wet gas. SWN’s latest well in this play had a peak production rate of 800 barrels of oil equivalent per day, and three other wells are also in various stages of drilling or completion. These wells will come online over the coming weeks.
Southwestern currently has 302,000 net acres in this play located in northeast Colorado. SWN is targeting oil production in the play, and the company’s latest test well (completed in 3Q13) had peak production of 146 barrels of oil per day and 59 Mmcf of gas per day. The company plans to continue testing the concept with additional wells in the area in the first quarter of 2014.
New Brunswick, Canada
Southwestern has ~2.5 million net acres in New Brunswick, Canada, where the company is targeting sandstone and shale reservoirs. SWN signed an exclusive license with the Province of New Brunswick to test new hydrocarbon basins in the region. Under the agreement, SWN needs to invest approximately $47 million in the province by March 31, 2013. In December 2012, SWN received two one-year extensions to its exploration license agreements, which would expire on March 16, 2014, and March 16, 2015, respectively.