Eagle Ford Drilling Up 2 Rigs – December 9, 2011

The Eagle Ford Shale drilling rig count increased by 2 rigs over the past week. While November was a record month, we expect to continue seeing records fall in 2012. Marathon Oil’s Eagle Ford budget provides capital to increase to 17 rigs in 2012 from the 9 the company is running currently. That’s just one company. There will be others adding rigs as well. Oil and gas operators are on track to drill more than 2,500 wells next year. Oil futures prices continue to show strength (WTI <$100/bbl) and natural gas futures prices (HH<$3.30/mmbtu) seem to be on a never ending path to $3……

The January contract has fallen more than $0.30 over the past week and the recent cold snap in the South hasn’t put a dent in storage levels. The natural gas rig count fell 1 to a total of 96 rigs. Don’t expect it to fall dramatically any time soon. Many of the gas weighted areas in the Eagle Ford also produce higher value condensate and NGLs.

A total of 2 oil rigs were added to reach a total of 162. Also, one service well is being drilled in Duval County.

Webb (37) still leads the region, while Karnes (36), La Salle (30), Dimmit (24), DeWitt (23), McMullen (22), and Gonzales (19) round out the top seven counties in the area. The most significant change was Petrohawk (BHP) who added back the 3 rigs it dropped the week before.

News highlighted throughout the play included:

Other news:

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Drilling Rig Count by Operator


Operator Name Prior Week Current Week
Chesapeake 33 31
EOG Resources 25 26
ConocoPhillips (Burlington) 16 15
Petrohawk (BHP) 11 14
Pioneer Natural Res. 12 12
Anadarko 12 12
Lewis Petroleum 11 12
Marathon (Hilcorp) 9 9
Talisman 8 9
XTO (Exxon) 7 8
All Others 113 111

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 formation. 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.

Drilling Rigs by County

Texas County Prior Week Current Week Texas County Prior Week Current Week
WEBB 38 37 COLORADO 2 2
KARNES 34 36 DUVAL 1 2
LA SALLE 32 30 LAVACA 2 2
DIMMIT 26 24 LEE 2 2
DEWITT 21 23 MADISON 4 2
MCMULLEN 19 22 WILSON 3 2
GONZALES 19 19 BRAZOS 3 1
FRIO 10 11 FAYETTE 1 1
LEON 11 11 GRIMES 1 1
LIVE OAK 8 8 MILAM 1 1
ROBERTSON 5 6 AUSTIN 0 0
ATASCOSA 4 5 BASTROP 0 0
ZAVALA 5 5 BEE 0 0
BURLESON 3 3 GOLIAD 0 0
MAVERICK 2 3 Washington 0 0
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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

Comments

  1. Frederico says:

    Nice job, RT! EagleFordShale.com is my “go to” site for information. Well-organized site. Much more reliable than the other EF bloggers who are apparently just part-timers.

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