Skipping to Slide 17 in our Midland Basin program. The chart on the left is produced by our team. We update this each quarter to demonstrate the outperformance of our Howard County wells compared to 17 peers. The lower black line represents the average cumulative oil performance of the 17 peer operators in Howard County during the period and the upper blue line is the average of SM wells. The SM average outperforms the peers, assuming normalized lateral lengths, producing 34% more oil as updated through the first 25 months on production. And on the right side, organically building inventory and economic value, we show our progress in applying our Midland operations model to our most recent acquisitions. At the 20,000 net acre North Martin and South Dawson counties acquisition, which we call Klondike, implementation of the SM operations model has already included environmental efforts such as flare assurance and flare reduction, a field-wide LDAR survey and spill risk mitigation, community outreach, including donations to the local school and fire department, production optimization of existing wells and facilities as well as SCADA and automation installation for improved surveillance of production parameters.
We are excited that we will be ready to spud our first well on this new acreage in December. As we mentioned last quarter, we intend to target the Dean and Middle Spraberry sand intervals. We estimate that new wells were breakeven on average at less than $50 per barrel oil, assuming $2.50 per Mcf gas and a 10% discount rate. At Sweetie Peck, as I mentioned earlier, we completed an asset exchange with an offset operator, which enabled us to increase our working interest from around 42% to almost 100% in 9 new 15,000-foot lateral wells. These wells are expected to be online in the first quarter, setting us up for stronger oil production early in the year. Turning now to South Texas on Slide 18. In 2023 to date, we have brought on 30 wells that have reached peak IP30 rates, these wells have averaged over 1,900 BOE per day peak IP30 with an average of 43% oil and 72% liquids.
This includes wells across our acreage position in both liquids-rich gas and high oil content areas, as you can see by the location of the blue stars. Overall, SM has completed 98 wells in the Austin Chalk that have reached IP30 as of October 2023. And turning to Slide 19. We are very excited to have our new operations surveillance room fully up and running in the third quarter. This centralized facility is a result of collaboration among several SM teams, production operations, our Permian instrumentation, electrical, automation and communications team, advanced analytics and emerging technologies, IT, operations technology, facilities and office management. It empowers our operations team with leading technologies that serve to improve operating efficiencies, reduce operating costs and ensure improved environmental stewardship.
The technologies employed enable monitoring and communicating with field personnel as well as midstream companies and generating automated responses, thereby cutting reaction times. For example, the monitoring and automated response capabilities enabled early detection and resolution of potential compressor downtime events prior to shut down. So I’ll wrap up by reiterating our theme. SM Energy presents a sustainable and repeatable business model that is characterized by cutting-edge technology, outstanding operations, a strong balance sheet, growing return of capital to stockholders, now with an increased and durable fixed dividend and strategic inventory growth. Thank you for your interest in SM Energy, and I look forward to our Q&A call tomorrow.
End of Q&A:
