SM Energy has entered an agreement to sell a 12.5% working interest in its non-operated Eagle Ford shale position to a Mitsui subsidiary for $680m.
On completion of the transaction, SM Energy will have a 186km² net area in the non-operated portion of its Eagle Ford shale position, reducing the average working interest from 27% to 14.5%.
SM Energy will have a total area of about 793km² in Eagle Ford shale after this transaction and the previously announced divestiture of Eagle Ford assets in Texas are consummated.
The average daily production from SM Energy’s total non-operated Eagle Ford shale position at the end of the first quarter of this year was 43.5MMcf per day, of which 42% is oil, 36% is natural gas, and 22% is NGL.
