SilverBow Resources Adds New Webb County Position for $50 Million
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SilverBow Resources has added a new acreage block in the Dorado play of Webb County, Texas. Through a series of transactions, including bolt-on acquisitions, leasing and drill-to-earn agreements, the company has assembled 7,500 net acres with current net production of approximately 30 million cubic feet per day (MMcf/d).
Consideration for SilverBow’s new Dorado position has totaled approximately $50 million, representing a combination of leasing, acquisition, and drilling capital.
“We are excited to announce our new position in the Dorado play, which we assembled by leveraging our long standing relationships in the area and our basin specific expertise. This new area closely resembles the reservoir quality of our prolific Fasken asset, and aligns with our strategy of adding scale in core areas and bolstering our Austin Chalk and Eagle Ford inventory. The first two wells that we have brought online in this position are exceeding our expectations and further confirm the robust economics of both the Eagle Ford and Austin Chalk reservoirs across Webb County,” said Sean Woolverton, SilverBow’s chief executive officer.
“Our total net acreage position in Webb County now totals 15,000 acres and with estimated drilling inventory exceeding 200 gross locations. This represents approximately eight years of development at a one rig pace. Our current plan is to run a contiguous rig to develop the inventory as we ramp our gas production into a very favorable price environment,” added Woolverton.
HIGHLIGHTS
• The new position doubles SilverBow’s current Webb County acreage, with similar reservoir characteristics and economics as the company’s prolific Fasken position
• The new block adds stacked pay, co-development inventory with over 50 net high rate of return drilling locations across the Austin Chalk and Eagle Ford formations
• The company estimates net recoverable resource of approximately 650 BCF from the new block, demonstrating the prolific quality of the Dorado play
• The company has already drilled and brought online one Eagle Ford well and one Austin Chalk well on the new acreage. Both wells came online in late July and are producing approximately 13 MMcf/d and 17 MMcf/d gross, respectively
• The Austin Chalk well represents the company’s seventh Chalk well drilled in Webb County with the 17 MMcf/d initial production rate being the best performing well to date
• All seven Chalk wells are exceeding the company’s two billion cubic feet (BCF) per 1,000’ of lateral length estimated ultimate recovery (EUR) type curve
About SilverBow Resources
SilverBow Resources is a Houston-based energy company actively engaged in the exploration, development and production of oil and gas in the Eagle Ford Shale and Austin Chalk in South Texas. With more than 30 years of history operating in South Texas, the company possesses a significant understanding of regional reservoirs that it leverages to assemble high quality drilling inventory while continuously enhancing its operations to maximize returns on capital invested.
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