Eagle Ford Regional Rig Count 261 on June 28, 2013

Natural Gas Producing Well Count Up Almost 50%
Eagle Ford Shale Well Map

Eagle Ford Shale Well Map – May 2013 | Click to Enlarge

The Eagle Ford Shale drilling rig count fell by two rigs to 261 running over the past week. Every week there are rigs in transit to the next location or waiting to begin drilling. Those rigs are not counted in the census, so somewhere around 5-10 rigs are not included. A change of just two in one week really doesn’t tell us much. We’ve floated just above 206 rigs for the entire year and we won’t likely see any major changes unless oil prices breakout of the $90-100/bbl range.

The U.S. rig count fell 11 rigs to 1,748 rigs running, of which 832 are running in Texas. A total of 353 rigs are targeting natural gas and 1,390 are targeting oil in the U.S. The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.).

We shared the new TX RRC Eagle Ford well map on the site this week. It’s obvious natural gas prices have been better and significant processing has come online in the first half of 2013. The natural gas producing well count has increased by almost 50% from less than 1,000 wells to almost 1,500. Read more in the article Eagle Ford Shale Well Map – TX RRC May 2013

It’s also of note that while natural gas prices were increasing, rigs were moving from oil prone to more gas prone areas of the play. For example, the rig count in Karnes County grew to a 2013 peak of 39 rigs in mid-May. That was up from 23 rigs in mid-February. That trend has reversed as natural gas prices have fallen over the past several weeks. Prices hit a peak of $4.40/mmbtu in April have been on a path to ~$3.50 since. The Karnes County rig count has followed and there are nine less rigs running (30) than we saw at the peak.

*Note* Now quoting Baker Hughes. Baker Hughes also releases its own Eagle Ford Rig Count that covers the 14 core counties (~230 rigs). Our numbers cover a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table at the bottom of this article.

Eagle Ford Oil & Gas Rigs

The natural gas rig count in the region gave three rigs back to fall to a total of 30 running. Natural gas futures fell $0.20 on the week to close near $3.59/mmbtu on Friday afternoon. That’s a significant drop from the high of $4.40/mmbtu we saw in April.

One more or 230 oil rigs are running in the region this week. WTI futures rebounded with the broader equity markets during the week and ended near $97/bbl on Friday. Eagle Ford light crude traded at $93.50/bbl on June 27th.

McMullen & Karnes counties lead development with 31 and 30 rigs running, respectively. See the full list of drilling by county below.

South Texas Oil & Gas News:

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Eagle Ford Shale Drilling by County

County Previous Week Current Week County Previous Week Current Week
MCMULLEN 32 31 ZAVALA 3 3
KARNES 32 30 BEE 2 2
DIMMIT 27 27 GRIMES 2 2
DE WITT 27 26 LEON 3 2
GONZALES 26 26 MADISON 2 2
LA SALLE 26 26 ROBERTSON 2 2
WEBB 16 17 WASHINGTON 2 2
LIVE OAK 13 13 BURLESON 1 1
ATASCOSA 11 12 COLORADO 2 1
BRAZOS 9 9 GOLIAD 1 1
FRIO 7 8 LEE 1 1
WILSON 5 6 AUSTIN 0 0
LAVACA 5 5 MAVERICK 0 0
DUVAL 2 3 MILAM 0 0
FAYETTE 4 3 BASTROP 0 0

Eagle Ford Operated Rig Count By Company

SmithBits no longer reports its operated rig count, but we’ll have updated number for you from a new source soon. Until then, you can reference our numbers from mid-April. There has not been a significant change in the overall rig count since this date:

Operator Name Apr-13
BHP (Petrohawk) 28
EOG Resources 25
Marathon Oil 18
Chesapeake 16
ConocoPhillips 10
Pioneer Natural 10
Anadarko 9
Lewis Petroleum 8
Murphy Oil 7
Plains Exploration 7
Talisman Energy (Statoil) 7
EP Energy 6
Halcon Resources 6
Hunt Oil 6
Swift Energy 6
Rosetta Resources 6
Cabot Oil & Gas 5
SM Energy 5
Shell 4
Carrizo Oil & Gas 3
All Others 50+

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 Baker Hughes 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.

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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. Dougal Maynes says:

    RT, a couple of guys who started the CBM boom here in Australia (sold the company to Shell for $3.5bn) have set up a company to explore in Maverick County and Illinois Basin.. They are very smart guys (US & Canadian) and was wondering if you had any views..
    Their website is http://www.strata-x.com
    Regards, Dougal

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