Eagle Ford Shale Rig Count – August 19, 2011

This week the Eagle Ford Shale rig count is down six rigs to 227 active drilling rigs. The number of natural gas rigs working remained flat at 106, while the oil rig count declined five rigs to 121. Zero disposal wells or injection wells are being drilled at this time. Horizontal rigs account for 201 of the 227 rigs drilling in the South Texas region. The drop from week to week is almost entirely attributable to Atascosa and Wilson counties. No other counties lost more than one rig, while Karnes, La Salle and McMullen counties each added rigs.

The uncertainty in the markets and the drop in oil prices over the past couple of weeks could begin to play a factor, but being down five rigs over the past week isn’t enough to make any conclusive statements. If the commodity markets stay down, expect the rig count to lag by at least a few weeks and up to three months. Often drilling contracts are in place for a certain number of wells or a specified period of time.

Over the last week, Texon Petroleum announced successful Olmos well results, while Texcom plans an Atascosa County disposal well and Greenhunter acquired rights to build a commercial water facility in Wilson County, TX.

On the corporate front, Loreto Resources announced a JV with Eagleford Energy and we had a merger announcement from ZaZa Energy and Toreador Resources.

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

Drilling Rig Count by County

Texas County Prior Week Current Week Texas County Prior Week Current Week
KARNES 29 31 BRAZOS 2 2
WEBB 28 28 GOLIAD 2 2
DIMMIT 25 25 LEE 2 2
LA SALLE 21 24 MILAM 3 2
DEWITT 24 22 COLORADO 2 1
GONZALES 19 18 LAVACA 1 1
MCMULLEN 16 18 MAVERICK 1 1
LIVE OAK 13 13 WILSON 3 1
LEON 8 7 AUSTIN 0 0
ATASCOSA 10 6 Bastrop 0 0
FRIO 6 6 BEE 0 0
MADISON 7 6 BURLESON 0 0
FAYETTE 4 4 DUVAL 0 0
ROBERTSON 4 4 GRIMES 0 0
ZAVALA 3 3 Washington 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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