SM Energy Completed 42 Gross Bakken Wells in 2013

SM Energy completed 42 gross flowing completions in its operated Bakken/Three Forks program in 2013. Eight wells were completed in the fourth-quarter of 2013.

At the end of 2013, SM Energy had 103 net wells producing and 79 proved undeveloped net locations in the Bakken.

The company had 54 mmboe of total proved reserves in the Bakken at end of the year.

SM Energy Focusing on Infill Development in the Bakken

In 2014, the company's Bakken plans include testing completion design, spacing, and new intervals to maximize program economics and prove up additional inventory. SM Energy plans to run three rigs spending $275 million on operated activity and another $75 million on non-operated properties.

SM Energy is currently focusing its drilling on the Raven/Bear Den and Gooseneck prospects in North Dakota. Substantially all of the company's activity is now focused on infill development. Two of the three rigs the company is running in North Dakota are operating in the Raven/Bear Den prospect and the third in the Gooseneck prospect.

During 2013, the Company's drill and complete costs for its operated wells decreased by approximately 4% in both the Raven/Bear Den and Gooseneck prospects.

SM Energy Q4 Company-Wide Daily Production in 2013

Oil production company-wide was up 31% in the fourth quarter of 2013 to 40,800 b/d from 31,300 b/d in Q4 2012. Natural gas production was up 24% from 429.3 mmcf/d in the fourth-quarter of 2013 to 347.1 mmcf/d. NGL production was up 51% to 31,500 b/d from 20,800 b/d. Oil Equivalent production was 143,800 b/d. That's also up 31% from 109,900 b/d.

SM Energy Bakken Highlights

42 gross flowing completions of wells in 2013
103 net wells producing and 79 proved undeveloped net locations in Bakken in 2013
54 mmboe of total proved reserves in 2013
$275 million on operated activity and another $75 million on non-operated properties in 2014

SM Energy Company-Wide Production Highlights

2013 4Q company wide oil production up 31% - 40,800 b/d
2013 4Q company wide natural gas production up 24% - 429.3 mmcf/d
2013 4Q company wide ngl production up 51% to 31,500 b/d
2013 4Q company wide oil equivalent production up 31% to 143,800 b/d