Join our newsletter and get a free copy of "Maximizing Your Minerals"

Discover how you can:

  • Negotiate the best lease for your minerals
  • Understand how the oil companies work
  • Prevent costly mistakes

*Your information will not be shared with others.

Southwestern Energy Announces AR – LA Smackover Brown Dense Acreage

by Kenneth E. DuBose on August 1, 2011

We’ve heard grumblings for months about the Smackover Brown Dense and are now beginning to oil & gas companies discuss the play. Last week Southwestern Energy announced a 460,000 acre position in Southern Arkansas and Northern Louisiana. Leases to date average an 18% royalty, with a 4 year primary term, with options to extend for 4 years. The company has invested a total of $325 per acre to date. That includes both bonuses and other costs associated with leasing.

“Included in the approximately  835,000 net acres are  460,000  net acres where the company will begin testing a new  unconventional  horizontal oil play.  Late in the third quarter, the  company  plans to spud its first test well  targeting the  Lower Smackover Brown Dense formation, an unconventional oil reservoir found in southern Arkansas and northern Louisiana. The formation, which ranges in vertical depths from 8,000 to 11,000 feet, appears to be laterally extensive over a large area ranging in thickness from 300 to 550 feet. The company’s investment in undeveloped acreage in the play area to date is approximately $150 million and its leases currently have an 82% average net revenue interest and an average primary lease term of 4 years with 4-year extensions.”

Read the full press release at SWN.com

Previous post:

Next post: