Dimmit County is situated in South Texas above the Eagle Ford Shale Play where companies are targeting both oil, condensate, and gas.
Dimmit County produces from both the condensate rich and oil prone areas of the Eagle Ford. Generally, activity in the county is driven by the two major operators Chesapeake and Anadarko. The condensate rich area in the southern third of the county is largely operated by Anadarko, and Chesapeake operates much of the northern portion of the county that is prospective for oil.
The county is also home to the 106,000 acre Harrison Ranch. The Harrison ranch is the largest single leasehold in the Eagle Ford shale. Shell did not issue a press release on the acquisition of this lease, but industry experts report the company leased the mineral rights to a prescribed interval that includes the Eagle Ford shale formation for $10,000 per acre. Additional leases will be required on Harrison Ranch to drill for more shallow or deeper oil & gas targets.
The county is also prospective for the emerging Pearsall Shale Gas Play. The Pearsall produces dry gas. With oil prices generally receiving a premium to natural gas (based on an equivalent BTU basis), the majority of wells target the Eagle Ford Shale oil.
The county seat is Carrizo Springs, which is the oldest community in the county. Other communities include the towns of Asherton and Big Wells.
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Major Operators in Dimmit
Anadarko, Chesapeake, and Newfield are the largest operators in Dimmit County. All three primarily target the Eagle Ford shale, but are testing the potential of the Pearsall shale.
- Anadarko is partnered with both KNOC and SM Energy across portions of its acreage. The company’s development is being supported by the proceeds raised from bringing in KNOC as a partner across this area for more than $16,000 per acre. Anadarko is now reaching development mode where it is pushing to bring down well costs, while increasing per well reserves to more than 450 mboe.
- Chesapeake and Newfield operate most of the acreage in the northern half of the county. Chesapeake estimates EURs are approximately 595 mboe across its acreage, which includes Dimmit County. The companies drill horizontal wells that have laterals that reach 5,000-8,000 ft.
E&P Companies with Operations in Dimmit County
- Newfield Exploration
- Peregrine Petroleum
- Petroquest Energy
- Redemption Oil & Gas
- Riley Exploration
- Rosetta Resources
- Sage Energy
- South Oil
- SM Energy (St. Mary Land & Exploration)
- Stonegate Production
- Terra Ferma Operating
- Texas American Resources
- TXCO Resources (Bankrupt with assets split between Anadarko and Newfield)
- ZaZa Energy
Dimmit County Pipeline Companies
- Enterprise Products Operating
- Howard Energy Partners
- Kinder Morgan and Copano
- West Texas Gas