ConocoPhillips Ramping Up for the Future (2011) – Eagle Ford Flashback

ConocoPhillips Eagle Ford Acreage Map

ConocoPhillips Eagle Ford Acreage Map | Click to Enlarge

ConocoPhillips began ramping up in South Texas not long after acquiring Burlington Resources. The following was taken from an Eagle Ford fact sheet over two years ago: [Read more…]

Eagle Ford Shale Drilling Rig Count – October 21, 2011

The Eagle Ford Shale drilling rig count decreased seven rigs to 240 active drilling rigs. That brings us below the record set last week. Approximately 200 of the rigs are targeting the Eagle Ford formation, while the remainder target formations such as the Austin Chalk, Buda Lime, and Pearsall shale.

The number of natural gas rigs working decreased a whopping 14 rigs. That reflects the current softness in natural gas prices, which is trading at $3.60 per mcf.  Six oil rigs were added during the week to bring the total to 128. Webb County contributed the bulk of the changes. Five rigs in the county shifted from gas to oil. Operators are telling us $90 oil is attractive and sub $4 natural gas is not.

One injection well is being drilled in Gonzales County and horizontal wells account for over 90% of drilling with 211 of the 240 rigs in the South Texas region.

Chesapeake Energy (27) and EOG Resources (22) are the only operators with more than 20 rigs active in the play.  36 companies have two or more crews running.

Earnings season has kicked off, so we heard results from a couple of Eagle Ford companies this week. The earthquake near Karnes County topped headlines on Thursday and Friday

Stay tuned each week for an update on the South Texas rig count. Better yet, Subscribe by Email or by RSS.

Newfield Q3 2011 Operations Update – Well Results and Costs

Newfield Exploration announced its third quarter earnings along with an update on its Eagle Ford operations. The company has a 335,000 acre position in the Maverick Basin across Dimmit, Maverick, and Zavala counties.

Drilling is currently focused in the southern portion of the company’s acreage where infrastructure is accessible. The company also has a pilot program active in the West Asherton area in Dimmit County. The company has completed 16 wells that have produced 650 barrels of oil equivalent in the first 24 hours. The wells have expected EUR’s of 300,000 barrels. Wells have been drilled in as little as 7 days at average costs of $6.6 million for drilling and completion. [Read more…]

Truck Traffic and Pipeline Advice from the Eagle Ford Task Force

The Eagle Ford Task Force has released advice for truck traffic and pipeline developments. It is all pretty straight forward and will help in making sure pipelines are developed without any problems and our roads are maintained as best as possible.


  • Placement of pipelines should avoid steep hillsides and watercourses where feasible
  • Pipeline routes should take advantage of road corridors to minimize surface disturbance
  • When clearing is necessary, the width disturbed should be kept to a minimum and topsoil material should be stockpiled to the side for replacement during reclamation, accelerating successful revegetation
  • Proximity to buildings or other facilities occupied or used by the public should be considered, with particular consideration given to homes
  • Unnecessary damage to trees and other vegetation should be avoided
  • After installation of a new line, all rights-of-way should be restored to conditions compatible with existing land use.


  • Trucking companies partnering with the Texas Department of Public Safety to develop a program that would alert companies when their drivers receive moving violations or drivers license suspensions
  • Creation of road use agreements or trucking plans between operators and local authorities, including parameters such as:
  1. Avoiding peak traffic hours, school bus hours, and community events.
  2. Establishing overnight quiet periods.
  3. Ensuring adequate off-road parking and delivery areas at all sites to avoid lane/road blockage.

You can read more in a news release from

GAIL – Carrizo Joint Venture Agreement in the Eagle Ford

The Gas Authority of India Limiated (GAIL) becomes the latest international company to enter the Eagle Ford. On September 28, 2011, GAIL announced a joint venture agreement with Carrizo Oil & Gas on a portion of the company’s Eagle Ford Shale assets. The Indian oil & gas company will gain a 20% interest in 20,200 net acres owned by Carrizo in South Texas. That’s 4,040 net acres to the company for $95 million in total consideration. Almost $64 million will be paid upfront and more than $31 million will be paid over the next year in the form of a drilling carry.

Carrizo is selling an interest in eight existing horizontal wells as part of the deal. Production from the wells is running at a rate of 1,700 barrels per day and 3.8 mmcfd. With consideration for production, the acreage traded for somewhere between $13,000 and $14,000 per acre. That’s off previous acreage prices paid in the Talisman-SM Energy deal, as well as the record Marathon-Hilcorp deal, but don’t forget oil prices are down almost $20 per barrel in that same period. [Read more…]

U.S. Oil Production Growth Expectations Continue To Rise

U.S. oil production is expected to rise more than 2 million barrels per day by 2015. That’s from a new report written by Bentek that was released after the National Petroleum Council’s Production Report last week. The bulk of production will be added by the Bakken, Eagle Ford, and other plays in West Texas. IHS predicts that same oil growth could fuel the addition of 1.3 million jobs and add $97 billion in tax revenues.

I think it’s safe to say all three, production, jobs, and tax revenues, should be welcomed during this economic climate. [Read more…]

Addressing Roads and Pipeline Easements in South Texas

South Texas roads and pipeline easements become a source of contention when an industry moves in as quick as we’ve seen in the Eagle Ford. Operators end up negotiating 95% of pipeline right-of-ways, but approximately 5% have to be condemned. That doesn’t make for a happy landowner.

In addressing road needs, one operator is donating $8,000 per well to a road fund in Dewitt County. Creative solutions will be needed. You can’t add heavy trucks to roads without more frequent maintenance. Road funds and increased tax payments will come and in a couple of years it will all equal out. In the mean time, a compliment should go to operators who are acting early in addressing the needs of the communities.

[Read more…]

Horizontal Drilling and Hydraulic Fracturing Brought the Eagle Ford

Anadarko’s drilling manager Mark Sunland was interviewed by MyWestTexas. He talks about new technologies opening up what was traditionally thought to be a source rock. The combination of horizontal drilling and hydraulic fracturing have made the play economic and opened vast domestic resources. Future improvements, such as rotary steerable technology, will only improve the efficiency of shale drilling onshore.  [Read more…]

Abraxas Petroleum Eagle Ford Well Results – September

Abraxas Petroleum provided an operations update on the Eagle Ford. The company’s first well in DeWitt County produced more almost 260,000 barrels equivalent in the first seven months and is currently producing 800 barrels of oil equivalent per day. A Talisman operated well, in which the company has an interest, came online in mid-August producing 1,500 barrels of oil equivalent per day after the companies completed a 14 stage frac stimulation. Abraxas is completing a horizontal well with 18 frack stages in Atascosa County and plans to drill two wells in McMullen County before year end.

Abraxas has over 12,000 net acres that stretch across Atascosa, DeWitt, Lavaca, and McMullen counties. The company reports having as many as 75 net drilling locations on 160-acre spacing. [Read more…]

MHR – Oryx Hunter #1H – Sable Hunter #1H IP Rates

Magnum Hunter Resources (MHR) gave an operational update today on two recently completed wells. The companies acreage spans over 51,000 gross acres in Gonzales and Lavaca counties. The Oryx Hunter #1H and Sable Hunter #1H were brought to production at 2,044 and 1,017 boepd, respectively. Oil made up more than 90% of the production stream in both wells.  Magnum Hunter has a total of 198 possible drilling locations identified. [Read more…]