SM Energy (SM) has 89,000 net acres of exposure to the fast growing Niobrara Shale play in Wyoming, with acreage in both the Powder River and Denver Julesburg Basins. The company has budgeted $25 million for development here in 2011.
Denver Julesburg Basin
SM Energy has 26,000 net acres under lease in the Denver Julesburg Basin in Wyoming and is testing the potential of the Niobrara here. During the second quarter of 2011, the company drilled three wells and reported that the Polaris well averaged production of 950 barrels of oil equivalent (BOE) per day during the first seven days. SM Energy plans to complete the other two Niobrara wells later in 2011.
Powder River Basin
SM Energy has 63,000 net acres of exposure to the Niobrara in the Powder River basin and has started obtaining permits to drill here. The company has not announced any development plans here.