SM Energy (SM) has a small Granite Wash development program and reported that during the second quarter of 2012, it completed five wells utilizing a three rig program. The company is targeting the Marmaton formation and plans to drop one rig at the end of September 2012.
SM Energy blamed low prices for natural gas liquids for the decision:
“If you look at the Granite Wash recently, the NGL prices up there are poor. And what we've done is we've looked at it, but we really want to -- we need to continue to high-grade this program to make sure that we're making the kind of returns that we want to make.”
SM Energy has completed seven wells in 2012 in the Granite Wash and in addition to the Marmaton has targeted the Hogshooter Wash.