By OGJ editors
HOUSTON, Sept. 15 -- Southwestern Energy Co., Houston, budgeted a 13.6% hike in 2005 capital outlays to $499.5 million with implications mostly for its eastern Arkoma basin shale gas play.
The increase, contingent on the subscription of a common stock offering, is mostly earmarked for more drilling in the Arkansas Fayetteville shale play and in East Texas and the Permian Basin, future gathering systems for shale gas, and fabrication of five land rigs to drill shale gas wells in addition to the five ordered earlier. Monthly rig deliveries are to start in November 2005.
The new budget has the company spending $137.5 million on Fayetteville this year, about twice its outlays on conventional Arkoma projects.
The gathering systems will be needed as the play expands into areas beyond existing infrastructure.
Gas from the company's first three named Fayetteville fields is delivered into the Ozark Gas Transmission system. They are Griffin Mountain field in Conway County, Gravel Hill in Van Buren and Conway counties, and Scotland field in Van Buren County (OGJ, July 18, 2005, p. 35).
