Eagle Ford Shale Rig Count – September 9, 2011

Drilling RigThis week the Eagle Ford Shale rig count is up eight rigs to 230 active drilling rigs. The number of natural gas rigs working decreased by three to a total of 111, while the oil rig count increased 11 rigs to 119. Zero disposal wells or injection wells are being drilled at this time. Horizontal rigs account for 208 of the 230 rigs drilling in the South Texas region. DeWitt and Webb counties lost a total of five rigs combined, while Karnes, Frio, and Atascosa counties all experienced an uptick in drilling activity.

That’s a good rebound in the oil rig count! Expect a softer gas price in the coming weeks as forecasters expect more gas to be injected than normal. That might put pressure on the gas rig count, but remember in the Eagle Ford operators need to hold leases by drilling and producing hydrocarbons. An operator can hold a 640 acre lease with one gas well and only 160 acres with one oil well. That is playing a factor in supporting the gas rig count even at sub $4. More acreage HBP’d is a win for the operators.

Texas fires and the Big 12 dominated the news, but on the Eagle Ford front:

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

Texas County Prior Week Current Week Texas County Prior Week Current Week
KARNES 33 37 FAYETTE 3 3
WEBB 33 31 WILSON 1 3
LA SALLE 27 28 MAVERICK 2 2
DEWITT 23 20 BRAZOS 1 1
MCMULLEN 18 19 GRIMES 1 1
DIMMIT 19 18 LAVACA 1 1
GONZALES 15 14 LEE 2 1
LIVE OAK 12 11 MILAM 2 1
FRIO 4 10 Washington 1 1
LEON 7 7 AUSTIN 0 0
ATASCOSA 1 5 BEE 0 0
MADISON 5 5 BURLESON 0 0
ROBERTSON 2 4 DUVAL 1 0
ZAVALA 5 4 GOLIAD 0 0
COLORADO 3 3 BASTROP 0 0

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 SmithBits and not solely wells targeting the Eagle Ford Shale. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count and/or Smith Service Co’s (Schlumberger) Smith Rig Count.

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Kenneth E. DuBose

Kenneth E. DuBose

Kenneth DuBose is the past President of Cheyenne Minerals Inc., an independent oil and gas operator. He began his energy industry career with ARCO Oil & Gas. Mr. DuBose then directed development of natural gas storage projects with Tejas Power Corp. He was a founding member of U.S. Minerals, (acquired by Torch Energy in 1999) a provider of internet based education for America’s mineral owners. Mr. DuBose holds a BS in Petroleum Engineering from Mississippi State University. He has served on various industry steering committees, non-profit boards, and is an active member of the Society of Petroleum Engineers, the National Association of Royalty Owners, the American Association of Professional Landmen, as well as being a Registered Investment Advisor. He writes on topics of oil and gas investing, wealth management and personal finance, having appeared in the Wall Street Journal, Kiplinger’s, Kiplinger’s Personal Finance, Houston Business Journal, Financial Advisor and various radio and TV outlets.

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