SilverBow Resources Inc., Houston, through a series of transactions, has added a new, dry gas acreage block in the Dorado play of Webb County, Tex.
The company assembled 7,500 net acres in South Texas with current net production of 30 MMcfd for about $50 million, representing a combination of leasing, acquisition, and drilling capital, the company said in a Sept. 15 release. SilverBow estimates net recoverable resource of about 650 bcf from the new block.
The new position doubles SilverBow’s current net acreage position in Webb County to 15,000 acres, with similar reservoir characteristics and economics as the company’s Fasken Austin Chalk position and 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 said.
The company’s estimated drilling inventory now exceeds 200 gross locations, said Sean Woolverton, chief executive officer. “This represents approximately 8 years of development at a one rig pace,” he said, noting current plans to run a contiguous rig to develop the inventory to ramp gas production.
The company has drilled and brought online one Eagle Ford well and one Austin Chalk well on the new acreage. Both came online in late July and are producing about 13 MMcfd and 17 MMcfd gross, respectively, exceeding expectations, the company said.