SilverBow Resources, Inc. announced the addition of 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. Approximately $40 million of the total was incurred during the third quarter of 2022.
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
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, commented, “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.”
Mr. Woolverton commented further, “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.”
