SM Energy (SM) reported the successful completion of a well into the Granite Wash in the second quarter of 2011.
SM Energy said that the Ruth 4-60 well drilled into the Cottage Grove formation produced an average of 1,378 barrels of oil (BOE) equivalent per day during the first seven days of production. The company said that 82% of this production stream was crude oil.
SM Energy plans to continue development of the Granite Wash in 2011 utilizing between one and two operated rigs. The company has allocated $60 million in capital in 2011 for this play. In 2012, SM Energy has issued a preliminary capital budget that includes spending between $70 million and $75 million to drill fifteen gross wells into the various Granite Wash formations.