SM Energy's Bakken Production Up - Utilizing Walking Rigs

SM Energy Bakken Map
SM Energy Bakken Map

SM Energy's Bakken production was up 12% from the first quarter to average 13,700 boe/d in the second quarter of 2013.

During the quarter, the company released two traditional rigs and contracted a walking rig. SM plans to run three rigs through 2013. Almost all activity is infill drilling at this point. SM is has largely completed its exploration efforts and its efforts to hold leases with production.

Pad drilling has driven costs down 8% on the company's Gooseneck acreage to an average of $6.5 million.

SM completed 12 gross Bakken wells in the second quarter and expects to complete 40 gross wells in 2013.

Watch for results from a downspacing pilot and a lower Three Forks test in the Raven area. Other operators have also had success in the Bakken interval in the Gooseneck area. Positive results from any of those could add to the company's resource potential.

Read the company's full second quarter press release at sm-energy.com