SM Energy Announces Exploration Success in East Texas; Amended Credit Facility with Increase in Borrowing Base

  SM Energy Announces Exploration Success in East Texas; Amended Credit
  Facility with Increase in Borrowing Base

Business Wire

DENVER -- April 15, 2013

SM Energy Company (NYSE: SM) announces today the successful completion of an
exploratory test well in San Jacinto County, Texas. The Horizon Properties 2H
(SM 100% WI), a horizontal completion in the Woodbine interval, produced
approximately 740 BOE/d in a 24-hour test, flowing at 1,520 PSIG casing
pressure on a 27/64ths inch choke, while cleaning up after fracture
stimulation. Production consisted of 305 Bbl/d of 42 degree API gravity oil
and 2,600 MCFD of rich gas (approximately 1250 BTU/scf). The well will be
shut-in to await construction of a gathering system.

The Company has increased its acreage position in East Texas to approximately
105,000 net acres and expects to drill additional test wells targeting the
Woodbine formation as well as other intervals of interest beginning in the
third quarter of 2013. SMEnergy expects to construct the necessary gathering
system once several of these wells have been drilled. Capital for the 2013
delineation program will be funded largely from the Company’s existing New
Venture budget.

SM Energy also announces that the borrowing base under the Company’s existing
revolving credit facility has been increased to $1.9 billion, from $1.55
billion, as a result of its lenders’ regularly scheduled semi-annual
redetermination process. The Company also amended the terms of its credit
facility to increase the commitment amount from the bank group to $1.3
billion, from $1.0 billion, and to extend the maturity of the facility by
approximately two years to April of 2018.

Tony Best, CEO, commented, “We are excited about the initial results in our
first Woodbine test in East Texas. The Horizon Properties 2H well was a
science well with approximately 2,500 feet of effectively stimulated lateral
length. We expect to be able to improve our results on subsequent wells in
this play. We have recently added approximately 10,000 net acres to our
position and are still working to further expand our acreage position in this
exciting play. I am also pleased by the increase in our borrowing base, as it
reflects the growth in our proved reserve base.

“Success in our New Ventures program allows us to add inventory to our
portfolio, which provides opportunities to create value for our shareholders
through high-grading, increasing activity, or asset monetization. As always,
we remain committed to a disciplined allocation of capital that creates
long-term value for shareholders and maintains the financial strength of the


SM Energy Company is an independent energy company engaged in the acquisition,
exploration, development, and production of crude oil, natural gas, and
natural gas liquids in onshore North America. SMEnergy routinely posts
important information about the Company on its website. For more information
about SM Energy, please visit its website at


This press release contains forward looking statements within the meaning of
securities laws. The words “will,” “believe,” “anticipate,” “plan,” “intend,”
and “expect” and similar expressions are intended to identify forward looking
statements. These statements involve known and unknown risks, which may cause
SM Energy's actual results to differ materially from results expressed or
implied by the forward looking statements. These risks include factors such as
the availability, proximity and capacity of gathering, processing and
transportation facilities, the volatility and level of oil, natural gas, and
natural gas liquids prices, uncertainties inherent in projecting future rates
of production from drilling activities and acquisitions, the imprecise nature
of estimating oil and gas reserves, the availability of additional
economically attractive exploration, development, and acquisition
opportunities for future growth and any necessary financings, unexpected
drilling conditions and results, unsuccessful exploration and development
drilling, the availability of drilling, completion, and operating equipment
and services, and other such matters discussed in the “Risk Factors” section
of SM Energy's 2012 Annual Report on Form 10-K filed with the Securities and
Exchange Commission. The forward looking statements contained herein speak as
of the date of this press release. Although SM Energy may from time to time
voluntarily update its prior forward looking statements, it disclaims any
commitment to do so except as required by securities laws.


SM Energy Company
James R. Edwards, 303-837-2444
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