Elizabeth Alford writes on significant news developments in the Eagle Ford oil and gas play taking place across South TX. She is a freelance writer with an extensive communications, PR, and staff writing background.

EVX to Build Eagle Ford Gathering System

Project to Include Frio, La Salle and McMullen Counties
EVX Midstream Expands in the Eagle Ford

EVX Midstream Expands in the Eagle Ford

EVX Midstream Partners announced last week it has entered into a agreement to build another crude oil gathering system in the Eagle Ford.

Related: Carrizzo Acquires Eagle Ford Acreage

The new gathering system, EVX South Texas Crude, will expand the company’s position in the region and will include a substantial acreage dedication and existing crude oil production in Frio, La Salle and McMullen Counties, Texas.

Herb Chambers IV, President and CEO of EVX said, “We are pleased to continue our multi-commodity development plans in the Eagle Ford. Our business model is to serve producers by handling all of their midstream needs. EVX’s operational and commercial expertise allows us to develop crude oil, natural gas, and water systems of any scale.”

The Woodlands-based EVX is also evaluating other expansion opportunities in the Eagle Ford area.

The Eagle Ford continues to be an attractive target for midstream deals. In July, Sanchez Production Partners initiated a transaction with Sanchez Energy to acquire 50% interest in Carnero Gathering, LLC. The company expects that the $44 million deal will increase their midstream revenue and adjusted EBITDA to approximately $7 million.

EVX’s Eagle Ford systems provides efficient, safe and scalable midstream field services for crude oil and water. Their infrastructure includes natural gas gathering, treating, processing, water gathering and crude oil gathering, blending and storage.

Read more at evxmidstream.com 

Carrizzo Acquires Eagle Ford Acreage

Company Increases Regional Position by 15%
Carrizo Buys More Eagle Ford Acres

Carrizo Buys More Eagle Ford Acres

Carrizo strengthens its position in the Eagle Ford through a $181 million deal with Sanchez.

Related: Carrizo Seeks Co-investor for Eagle Ford Deals

Earlier this week, Carrizo Oil & Gas, Inc. announced it has signed an agreement to acquire 15,000 acres in the heart of the Eagle Ford from Sanchez Energy Corporation.

Acquisition highlights include:

  • Approximately 15,000 net acres located in LaSalle, Frio, and McMullen counties, TX
  • Estimated net production during September of approximately 3,100 Boe/d (61% oil) from 112 gross (93 net) wells
  • Net proved reserves estimated at 14.5 MMBoe (71% oil, 56% developed)
  • Approximately 80 net de-risked drilling locations based on a single layer development in the Lower Eagle Ford Shale, with additional upside potential from stagger-stack development, infill drilling, and additional zones
  • Acreage is 100% operated with no additional drilling requirements

In September, Carrizo announced they were increasing capital expenditures for the Eagle Ford and looking for additional opportunities to increase their holdings in the region.

After the closing in December 2016, Carrizo will hold over 100,000 net acres in the Eagle Ford Shale, concentrated in LaSalle, McMullen, and Atascosa counties. The acquisition also increases Carrizo’s drilling inventory in the play to approximately 1,100 net locations.

The transaction has an effective date of June 1, 2016, and is currently expected to close by mid-December, 2016. Carrizo plans to fund the acquisition with the proceeds from a separately-announced equity financing.

S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented, “We are pleased to announce this bolt-on acquisition in the Eagle Ford Shale, as it increases our acreage position in the play by more than 15% and expands our Core inventory in it by approximately 10%, with additional upside possible from a combination of infill drilling and multi-zone development. ”

In the same press release, the company also estimated 2016 third quarter production volumes of 3,750 MBoe, or 40,762 Boe/d, an increase of 13% versus the third quarter of 2015. Oil production during the third quarter of 2016 averaged 24,488 Bbls/d, while natural gas and NGL production averaged 69,262 Mcf/d and 4,730 Bbls/d, respectively.

Carrizzo credits high volumes to stronger-than-expected performance from the company’s Eagle Ford Shale and Delaware Basin assets.

Read more at carrizzo.com

Statoil Establishes Eagle Ford Fund

Grants to Benefit First Responders and Schools
Statoil Establishes Eagle Ford Fund

Statoil Establishes Eagle Ford Fund

International energy company, Statoil, announced the creation of a new fund to benefit the Eagle Ford Shale region of south Texas.

Related: Statoil in the Eagle Ford

Statoil Gulf Services LLC has established the Statoil Gulf Services LLC Advised Fund, which will provide grants to first responders and to schools with science, technology, engineering, and math (STEM) education programs within the Eagle Ford.

The fund will be managed by the Coastal Bend Community Foundation and will focus on activities in Bee, DeWitt, Karnes, Live Oak, LaSalle, and McMullen counties.

As a founding member of the South Texas Energy & Economic Roundtable (STEER), Statoil actively contributes to connecting the oil and natural gas industry to South Texas communities. Among their efforts include support of the Karnes County Eagle Ford Energy S.T.E.M. camp, and the Chisholm Trail Heritage museum and events such as George West Storyfest and Yorktown Western Days.

Statoil has been active in the Eagle Ford formation since 2010 through a joint venture. In 2013, they became operator of the eastern portion of the asset, and have since continued to improve our operations, reducing our footprint locally and becoming even more efficient. The company has approximately 71,000 net acres in the play.

Read more at cbcfoundation.org


Kinder Morgan: Eagle Ford Contributes to Decreased Volumes

Company to Push Forward with Pipelines Despite Protesters
Kinder Morgan Q3 2016

Kinder Morgan Q3 2016

Kinder Morgan, Inc (KMI) announced its third quarter results last week, saying they are ‘pleased’ with operational performance despite weak market conditions.

Related: Eagle Ford Production Down 28% for Kinder Morgan

President and CEO, Steve Kean said the company’s Eagle Ford assets have continued to experience lower production, which is affecting the company’s total volumes.

  • Natural gas gathered volumes were down 17% from the third quarter last year due primarily to lower natural gas volumes on multiple systems gathering from the Eagle Ford Shale
  • Natural gas transport volumes were down 1% compared to the third quarter last year, driven by lower throughput on the Texas Intrastate Natural Gas Pipelines due to lower Eagle Ford Shale volumes

The company claims that about 38% of the natural gas consumed in the United States moves on KMI pipelines. During an earnings call, Executive chairman Rich Kinder touched on the current controversies surrounding new pipeline projects around the country.

“While the protestors tend to get the headlines, it is still possible to build out new infrastructure. This quarter for example, we completed an expansion on our Texas Gas pipeline network.” 

Kinder Morgan Quarterly Highlights:

  • The company revealed a net loss available of $227 million, compared to net income of $186 million for the third quarter of 2015.
  • Cuts 2016 capital budget to $3.3 billion from its previous estimate of $4.2 billion
  • Disclosed a $285 million writedown mainly in its carbon dioxide segment, said it does not expect to access the capital markets to fund growth projects in 2016.
  • Delayed completion of $5.4 billion Trans Mountain Pipeline expansion to the third quarter of 2019
  • Combined gross oil production volumes averaged 53.7 MBbl/d for the third quarter, down 6 percent from 57.3 MBbl/d for the same period in 2015

Chief Financial Officer Kimberly Allen Dang warned analysts, “Let me give you this warning, if commodity and equity prices continue to fall, then we may have impairments in future quarters.” 


Kinder Morgan shares hit a record low of $11.20 last Wednesday, before trading down 2.6 percent at $11.70 after hours.

Read more at kindermorgan.com

Eagle Ford Rig Count Gains One, Remains Sluggish

Texas Rig Totals Up by 15
Eagle Ford Rigs

Eagle Ford Operators Put Rigs Back Online

The Eagle Ford Shale rig count gained slightly this week, with 39 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, U.S. Energy Information Administration (EIA) is forecasting shale oil production to fall for a 12th consecutive month in November with the Eagle Ford taking the biggest hit. 

Read more: EIA: Eagle Ford Shale the Biggest Loser

A total of 551 oil and gas rigs were running across the United States this week, a gain of 14  from last week. 108 rigs targeted natural gas (three more than the previous week) and 443 were targeting oil in the U.S. (11 more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 254 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

Eagle Ford Oil & Gas Rigs

Six rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $2.96/mmbtu.

33 Eagle Ford rigs were targeting oil with WTI oil prices gaining slightly to $50.85

A total of 37 rigs are drilling horizontal wells, zero are drilling directional wells and two are vertical.

Karnes and LaSalle leads production this week with seven rigs each in production. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

County Previous Week Current Week County Previous Week Current Week
BEE 0 0 ZAVALA 0 0

Eagle Ford Shale News

Lucas Energy Re-Activates Eagle Ford Assets

Chesapeake Faces Antitrust Investigation

EIA: Eagle Ford Shale the Biggest Loser

Texas Tax Revenues Drop 3.9%

Sanchez Production Partners to Acquire New Eagle Ford Assets


What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Read more at bakerhughes.com

Lucas Energy Re-Activates Eagle Ford Assets

Company Borrows $1 Million for Eagle Ford Projects
Lucas Re-activates Wells in the Eagle Ford

Lucas Re-activates Wells in the Eagle Ford

Lucas Energy re-energizes their activity in the Eagle Ford.

Related: Lucas Energy Joins Lonestar for Eagle Ford Development

This morning, executives of Lucas Energy announced they recently completed two wells in Karnes County in addition to re-activating their Griffin 1H Austin Chalk well. The first tests on the Griffin 1H is showing production of 55 boe/d after having produced 5 Boe/d prior to shut-in.

In south Gonzales County, Lucas has participated in the Cyclone #9H well that tested 598 barrels of oil equivalent per day (Boe/d) and a 30-day initial production rate of 486 Boe/d. The Cyclone #10H tested 631 Boe/d and a 30-day initial production rate of 521 Boe/d. Originally estimated to cost an average of $5.2 million, these wells have been drilled and completed at an average cost of $4.7 million. Both are producing approximately 90% crude oil from a processed three-stream basis on a 18/64″ choke. Lucas owns an 8% working interest in these two wells.

In August, Lucas Energy announced that its wholly-owned subsidiary, CATI Operating, LLC will borrow $1 million to fund drilling, completion and maintenance projects in the Eagle Ford Shale. The company will enter into a joint operating agreement with Lonestar Resources that will cover over 1,450 gross acres. Lucas will have a 8% -14% working interest in the units.

Anthony C. Schnur, the Chief Executive Officer of Lucas Energy commented, “As we ramp up production on our legacy and newly-acquired assets, the Company continues to aggressively pursue acquisition opportunities with both producing and nonproducing reserves. “

Second quarter highlights for Lucas’ Eagle Ford assets include:

  • Placed two new Eagle Ford shale wells on stream during May of the quarter
  • Crude oil production rose 17% sequentially in the second quarter as Lonestar’s 2016 completions have all been in the crude oil window.
  • Net loss of $12.8 million for 2Q16 versus a net loss of $8.4 million in 2Q15
  • Adjusted EBITDAX was $16.0 million compared to $22.0 million for 2Q15