SilverBow Resources Announces New Dry Gas Position in the Dorado Play of Webb County
September 15 2022 - 8:00AM
Business Wire
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or “the
Company”) today 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.”
ABOUT SILVERBOW RESOURCES, INC.
SilverBow Resources, Inc. (NYSE: SBOW) is a Houston-based energy
company actively engaged in the exploration, development and
production of oil and gas in the Eagle Ford Shale and Austin Chalk
in South Texas. With over 30 years of history operating in South
Texas, the Company possesses a significant understanding of
regional reservoirs that it leverages to assemble high quality
drilling inventory while continuously enhancing its operations to
maximize returns on capital invested. For more information, please
visit www.sbow.com. Information on the Company’s website is not
part of this release.
FORWARD-LOOKING STATEMENTS
This release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements represent management's
expectations or beliefs concerning future events, and it is
possible that the results described in this release will not be
achieved. These forward-looking statements are based on current
expectations and assumptions and are subject to a number of risks
and uncertainties, many of which are beyond our control. All
statements, other than statements of historical fact included in
this press release, including those regarding our strategy, the
benefits of the transactions, future operations, guidance and
outlook, financial position, well expectations and drilling plans,
estimated production levels, expected oil and natural gas pricing,
estimated oil and natural gas reserves or the present value
thereof, reserve increases, service costs, impacts of inflation,
future free cash flow and expected leverage ratio, capital
expenditures, budget, projected costs, prospects, plans and
objectives of management are forward-looking statements. When used
in this report, the words “will,” “could,” “believe,” “anticipate,”
“intend,” “estimate,” “budgeted,” "guidance," “expect,” “may,”
“continue,” “predict,” “potential,” “plan," “project” and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. Important factors that could cause actual
results to differ materially from our expectations include, but are
not limited to, risks and uncertainties discussed in the Company’s
reports filed with the SEC.
All forward-looking statements speak only as of the date of this
news release. You should not place undue reliance on these
forward-looking statements. The Company’s capital budget, operating
plan, service cost outlook and development plans are subject to
change at any time. Although we believe that our plans, intentions
and expectations reflected in or suggested by the forward-looking
statements we make in this release are reasonable, we can give no
assurance that these plans, intentions or expectations will be
achieved. The risk factors and other factors noted herein and in
the Company's SEC filings could cause its actual results to differ
materially from those contained in any forward-looking statement.
These cautionary statements qualify all forward-looking statements
attributable to us or persons acting on our behalf.
All subsequent written and oral forward-looking statements
attributable to us or to persons acting on our behalf are expressly
qualified in their entirety by the foregoing. We undertake no
obligation to publicly release the results of any revisions to any
such forward-looking statements that may be made to reflect events
or circumstances after the date of this release or to reflect the
occurrence of unanticipated events, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220915005369/en/
Jeff Magids Director of Finance & Investor Relations (281)
874-2700, (888) 991-SBOW
SilverBow Resources (NYSE:SBOW)
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