Feb. 28 (Bloomberg) -- Southwestern Energy Co., the biggest natural-gas producer in Arkansas’ Fayetteville Shale, fell the most in six weeks after it announced disappointing results from a new oil field.
The shares dropped 5.7 percent to $33.31 at the close in New York, the biggest decline since Jan. 11.
Southwestern’s first oil well in the Brown Dense field in Arkansas produced 103 barrels a day, which was “a disappointment,” Scott Hanold, an analyst with RBC Capital Markets in Minneapolis, wrote in a note to clients today. The company expects better production from two more wells in the Brown Dense field, Chief Executive Officer Steven Mueller said on an earnings webcast today.
Mueller is trying to increase oil production from the Brown Dense field and the Denver-Julesburg Basin in Colorado to offset low gas prices, which have fallen about 25 percent since the beginning of the year.
Almost all of Southwestern’s production is gas, Mueller said in an interview Jan. 5.
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