Eagle Ford Rig Count Up 1 Again This Week – Feb 17, 2012

Drilling RigThe Eagle Ford Shale drilling rig count grew by 1 rig again this week. Activity across the play is resisting sub-$3 natural gas prices and it looks like we’ll find out if operator’s capital budgets can resist low gas prices as well. EOG Resources increased its reserves estimate to 1.6 Billion barrels and I don’t believe they will be slowing down any time soon.  It will be interesting to see what happens for the guys producing more natural gas and not benefiting from oil prices across their portfolio. La Salle County dropped two rigs, so we have no counties with more than 40 rigs working.

The natural gas rig count was up 2 this week to 81.  The entire increase was attributable to Karnes and DeWitt counties where gas wells produce considerable amounts of liquids. The oil rig count fell 1 to 175.  Natural gas and oil prices were both up a bit on the week. Gas prices were trading at ~$2.70/mmbtu on Friday and the March WTI oil contract increased to more than $103 per bbl. Horizontal wells account for activity from 237 rigs and we have 1 disposal well being drilling in Leon County (not a core Eagle Ford area).

La Salle County’s lead in drilling shrunk to 1 with 38 rigs working.  Karnes (37),Webb (34), DeWitt (25), McMullen (23), Gonzales (22), Dimmit (16), and Live Oak (10) make up the top Eagle Ford targeted counties.

It was another busy week for news on the pipeline and midstream side, but EOG’s addition of 700 million barrels in potential reserves in the Eagle Ford trumped all other announcements.

News

Operator News

For everyone out there considering all the driving jobs that are paying north of $30 an hour, Devorah Fox of Mike Byrnes & Associates, Inc. contributed an article related to getting a CDL license.

Come back weekly for updates on the South Texas drilling rig count. Better yet, Email Subscribe Link]

Drilling Rig Count by Operator


Operator Name Prior Week Current Week
Chesapeake 30 32
EOG Resources 26 26
ConocoPhillips 17 17
Petrohawk (BHP) 16 17
Pioneer Natural 11 12
Marathon Oil (Hilcorp) 12 11
Talisman 10 11
Anadarko 9 9
Lewis Petroleum 9 9
XTO (ExxonMobil) 8 8
All Others 108 105
Total 256 257

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
LA SALLE 40 38 WILSON 3 3
KARNES 35 37 BEE 2 2
WEBB 31 34 BRAZOS 3 2
DEWITT 25 25 LEE 2 2
MCMULLEN 23 23 MAVERICK 2 2
GONZALES 23 22 ZAVALA 2 2
DIMMIT 18 16 FAYETTE 1 1
LIVE OAK 10 10 MILAM 1 1
FRIO 8 8 Washington 1 1
LEON 7 7 AUSTIN 0 0
ROBERTSON 6 6 BASTROP 0 0
ATASCOSA 4 5 BURLESON 0 0
MADISON 3 4 COLORADO 0 0
GRIMES 3 3 DUVAL 0 0
LAVACA 3 3 GOLIAD 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. R.T. Dukes RT Dukes says:

    If the unit is not producing, you won’t likely know until you are sent a division order.

  2. Clifford and Patsye Johnson says:

    Is there any way to find out if we are included in a Unit where Marathon Oil will be drilling?

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