SM Energy (SM) reported that the company operated one rig in the Permian Basin during the second quarter of 2011. The company drilled wells into the Wolfberry oil formation to test down spacing and also tested various Mississippian plays.
SM Energy has drilled eight wells into the Wolfberry on twenty acre spacing and said that the results have exceeded expectations.
SM Energy plans to spend $50 million in 2011 to develop different oil and gas plays in the Permian Basin, including the Wolfcamp Shale.
