Page 10 - NorthAmOil Week 10 2023

NorthAmOil PROJECTS & COMPANIES NorthAmOil

SilverBow to operate two rigs

in 2023, drill for more oil

TEXAS SILVERBOW Resources is planning to operate projecting net production of 295-316mn cubic
two drilling rigs throughout 2023, up from an feet (8.35-8.95mn cubic metres) equivalent per
average of 1.5 rigs in 2022. Houston-based Sil- day, with expected oil volumes of 10,500-11,500
verBow is focused on oil and gas production in barrels per day (bpd). For the whole of 2023, Sil-
the Eagle Ford and Austin Chalk formations in verBow expects to achieve total net production
South Texas. of 325-345 mmcf, (8.92-9.77 mcm) equivalent,
In 2023, the company will also concentrate with anticipated oil volumes of 13,750-15,000
more on liquids than gas production. This is bpd.
based on a number of factors, it said, including In the fourth quarter of 2022, SilverBow’s oil
the “relative strength of oil prices versus natural and gas revenue increased 31% y/y, driven by
gas prices”. There is also limited takeaway capac- increased production and higher commodity
ity for gas from Webb County, Texas, it said. prices. For the quarter, recorded net income was
SilverBow’s 2023 capital budget range is $173mn with adjusted earnings of $119mn and
$450-475mn, around 90% of which is allocated free cash flow of $2mn.
to drilling and completions (D&C). For the whole of 2022, SilverBow recorded
The budget provides for 60 gross, or 52 net, net income of $340mn, adjusted earnings of
operated wells drilled, an increase from 47 gross, $393mn and free cash flow of $22mn.
or 45 net, operated wells drilled in 2022. Around The company closed four acquisitions during
95% of D&C activity in 2023 will be directed 2022, which bolstered its production, reserves
towards oil development across the company’s and progress towards key scale targets, it said.
central oil, eastern extension and western con- Acquisitions and leasing activity in 2022 added
densate areas. more than 350 gross drilling locations in the
The budget will support production growth Eagle Ford and Austin Chalk formations.
of about 25% year on year, funded by cash flows As of the end of 2022, SilverBow’s total esti-
from operations, said SilverBow. Liquids pro- mated proven reserves were 2.2 trillion cubic feet
duction for the whole of 2023 is anticipated to (62.3bn cubic metres) of gas equivalent, 43% of
increase by 100% y/y. which were proven developed and 77% of which
For the first quarter of 2023, the company is consisted of natural gas.™

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