Eagle Ford Shale Drilling Rig Count – October 21, 2011

The Eagle Ford Shale drilling rig count decreased seven rigs to 240 active drilling rigs. That brings us below the record set last week. Approximately 200 of the rigs are targeting the Eagle Ford formation, while the remainder target formations such as the Austin Chalk, Buda Lime, and Pearsall shale.

The number of natural gas rigs working decreased a whopping 14 rigs. That reflects the current softness in natural gas prices, which is trading at $3.60 per mcf.  Six oil rigs were added during the week to bring the total to 128. Webb County contributed the bulk of the changes. Five rigs in the county shifted from gas to oil. Operators are telling us $90 oil is attractive and sub $4 natural gas is not.

One injection well is being drilled in Gonzales County and horizontal wells account for over 90% of drilling with 211 of the 240 rigs in the South Texas region.

Chesapeake Energy (27) and EOG Resources (22) are the only operators with more than 20 rigs active in the play.  36 companies have two or more crews running.

Earnings season has kicked off, so we heard results from a couple of Eagle Ford companies this week. The earthquake near Karnes County topped headlines on Thursday and Friday

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

Drilling Rig Count by Operator


Operator Name Prior Week Current Week
Chesapeake 29 27
EOG Resources 23 22
ConocoPhillips (Burlington) 15 14
Pioneer Natural Res. 13 12
Anadarko 12 11
Petrohawk (BHP) 12 11
Lewis Petroleum 10 10
XTO (Exxon) 8 8
Talisman 8 8
Hilcorp (Marathon) 6 6
All Others 111 111

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 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.

Drilling Rigs by County

Texas County Prior Week Current Week Texas County Prior Week Current Week
KARNES 34 34 WILSON 3 3
WEBB 34 33 BRAZOS 2 2
LA SALLE 30 28 FAYETTE 3 2
DEWITT 20 19 GRIMES 2 2
DIMMIT 18 19 BURLESON 1 1
MCMULLEN 22 19 COLORADO 1 1
GONZALES 18 17 DUVAL 1 1
FRIO 13 13 LEE 1 1
LEON 9 9 MAVERICK 1 1
LIVE OAK 9 9 MILAM 0 1
ROBERTSON 7 7 AUSTIN 0 0
ATASCOSA 6 6 BASTROP 0 0
MADISON 4 5 BEE 0 0
ZAVALA 6 4 GOLIAD 0 0
LAVACA 2 3 Washington 0 0
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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.

Comments

  1. Lanny Hallmark says:

    We have 300 acres near Berclair, Texas in Goliad County. Is there any interest in drilling in this area?

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