The company’s third well, the BML #31-22 #1-1H located in Union Parish, Louisiana, was drilled to a vertical depth of approximately 10,400 feet with a 4,300-foot horizontal lateral and was completed with 19 successful fracture stimulation stages in June. After 41 days of flowing up casing, this well’s highest 24-hour producing rate to date was 421 barrels of 50o API oil per day, 3,900 Mcf of high Btu gas per day and 836 barrels of water per day (43% of load recovered to date) with a calculated flowing 01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000050100150200250300350400450500550600650700Daily Rate, Mcf/d<9 Stages (1 Well)9-12 Stages (20 Wells)Greater than 12 Stages (20 Wells)4 BCF Type Curve6 BCF Type Curve8 BCF Type Curve10 BCF Type CurveTotalWell Count4128242217171713107741Notes:Data as of June 30, 2012. 11 - MORE - bottom hole pressure of 5,700 psi on a 24/64-inch choke.
Chem.9999 already posted the link to the earnings call transcript for you. In the Q2 earnings call presentation, SWN did tell us that the BML well AVERAGED 353 barrels of oil per day and 3.3 million cubic feet of gas per day FOR MORE THAN THIRTY DAYS...
Obvioulsy you believe that if you post your criticisms of this play loudly and frequently enough people will believe you rather than the facts.
The fact is that the Bill Way, the COO of SWN told everyone in their Q2 conference call that the BML well produced over 353 barrels of oil per day for over thrity days... Plus, later in the Q&A session, Mueller (CEO) refers to the natural gas component of the BML production, describing the high BTU content as indicative of significant natural gas liquids content "the kind of stabilized BTU for that gas is about 1,200 BTU gas, so there is significant NGLs in it..." Granted, it would be nice of they could provide more detailed information at some point, but the basics are there. Everyone should listen to the conference call or read the earnings-call transcript for themselves to find the truth.
SWN only gave you the best production rate (24 hours) not the average (a huge difference). I assume they shut the well in for build-up and more testing. Usually means the rates are not stable and the pressure dropped rapidly. Thus, probable a poor test (poor well).
You can only get a somewhat accurate projected EUR with a well on production for at least 4-6 months. One must calculate and review the production decline curve. You cannot make a top range EUR based upon the best test because one does not know the pressure and production declines.
Hopefully, someone will ask them specific questions three months from now about the results and what it means going forward in this trend. SWN bought 3 more months of time without a good explanation of results.
To date the Brown Dense is a complete "DOG". SWN only mention pressure and are fuzzy about details. Read the text when Mueller answers questions. SWN never say anything about the actual production tests (they do mention the best production within a 41 day time-frame and then shut the well in for a pressure build-up). What was the pressure draw down?
Logs and cores will depict very low porosity and permeability. RCB Capital and others do not know what questions to ask. Most analysts have limited geologic knowledge as can be demonstrating by the Bakken comparison. They did not pick up on Mueller stating the BLM well has more silt and less carbonates which tell us the porosities are probably lower than the first two wells. In addition, SWN state they completed a 19 stage frac on the BLM well.
If the BLM well was a really good well SWN would announce a good production test. Instead they need more time to evaluate the well. A good test would produce back the frac fluids in days to several weeks and SWN would start producing oil, gas and water A.S.A.P. The pressures probable drop dramatically upon testing, thus shut in for the build-up. You cannot put a spin on a dog. With the best production being 421 BOPD and 3.9 MCF along with 836 BWPD what will the rates be in 60-90 days with a 70% - 80% production decline curve.
They may still find a sweat spot but so far the results are poor! Ongoing activity suggest they are still searching for a sweet spot.