Shell Oil

Shell entered the Eagle Ford from 2008-2011 and leased over 250,000 acres during that period, but in September of 2013 the company announced plans to sell its Eagle Ford assets. The company stated the play simply hadn’t met internal targets for size and profitability.

The company’s holdings are dominated by the 100,000 acre Harrison Ranch in Dimmit County, which is prospective for the Eagle Ford Shale oil window. Shell’s remaining 150,000 acres spread across Dimmit, Webb, and Zavala counties. Only 106,000 acres were mentioned in the company’s announcement to exit the Eagle Ford, so the remaining acreage has either been sold or leases are expiring soon.

The company dedicated more resources to unconventional gas and oil assets in the Marcellus and Eagle Ford as it built on its success in the Pinedale Field of Wyoming.

The company made headlines with the leasing of the 106,000 acre Harrison Ranch. The Harrison Ranch is the largest single leasehold in the Eagle Ford shale. Industry experts report the company leased the mineral rights to a prescribed interval that includes the Eagle Ford shale formation for approximately $10,000 per acre. That also means additional leases will be required on Harrison Ranch to drill for more shallow or deeper oil & gas targets.

The Royal Dutch Shell Group (NYSE: RDS) is more widely known as Shell or Shell Oil Company. The integrated company is one of the largest oil & gas operators in the world. Shell’s US headquarters is in Houston, Texas. Shell Oil Company services include oil production and exploration motor oil, and credit cards. The company operates in more than 90 countries across the world.

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Shell Oil Eagle Ford Shale Quarterly Commentary

Shell does not publicize much when it comes to the Eagle Ford, but the company was working more than six rigs at the start of 2012 and the asset is considered core to the company’s onshore North America growth strategy.

September 2013

After writing down North American assets just a month earlier, Shell plans to sell its Eagle Ford assets. Based on recent transactions, the assets should fetch $1.5-2 billion or more.

Q3 2011

“…Shell Pipeline’s Ho-Ho Reversal project will provide pipeline access to additional crudes across the 300 miles of the US Gulf of Mexico refining complex.  Those crudes include the domestic crude oil production increases in Texas and the mid-continent including the Barnett, Eagle Ford, and Bakken shale plays, as well as the growing crude supplies in the Cushing, OK area.  Additionally, the Ho-Ho Reversal project would complement the new pipeline infrastructure that is currently being built to the Houston area. …..”

Source: Shell Oil Company

Q1 2011

“…Our first quarter 2011 earnings have risen from year-ago levels, driven by higher industry margins and our own operating performance.

The recent increase in oil prices clearly demonstrates the interdependence of global energy suppliers and consumers, in an industry that needs sustained investment in diverse energy sources to meet customer demand…..”

Source: Shell Oil Company

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