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    SM Energy completing second Granite Wash well

    SM Energy Co. (NYSE:SM), formerly St. Mary Land and Exploration, recently started its Granite Wash drilling program with two wells.

    The Wester 2-34H in the Mayfield area of western Oklahoma marks the first horizontal well drilled by the company in its 32,000 net acres, held by production, in the area. Initial production rates have yet to be released. SM Energy holds a 73% working interest in the well.

    With part of the $79 million of its $725 million 2010 capital expenditure budget allocated to the Granite Wash, Marcellus, and Woodford shale programs combined (down $8 million from its original $87 million), the company anticipates completing four operated horizontal Granite Wash wells in 2010.

    A second horizontal well, McEntire 2-27H (69% WI), is being completed.

    SM Energy Co. is an independent energy company focused on the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in the United States.

    The company operates in five core areas: the Mid-Continent, Rocky Mountains, ArkLaTex, Permian Basin, and Gulf Coast regions.

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