Halcon Reduces 2014 Capital Spending Plans - Production Guidance Flat

December 30, 2013 R.T. Dukes

Halcon Resources is lowering its capital budget for 2014 and keeping its production guidance the same at 38,000-42,000 boe/d.

The company originally planned to spend more than $1 billion, but has lowered its budget 14% to $950 million.

Approximately $125 million will be spent on leasehold, infrastructure, and seismic. Halcon also plans to divest $300-400 million in properties in 2014.

“We expect to fund our entire 2014 capital budget with a combination of cash flow from operations, borrowings under our revolving credit facility and proceeds from additional non-core asset sales.”

— Floyd C. Wilson, CEO

Rosetta Resources Plans to Spend $735 Million in the Eagle Ford in 2014

December 19, 2013 R.T. Dukes

Rosetta Resources Eagle Ford Acreage Map By Area

Rosetta Resources will spend approximately tw0-thirds of its $1.1 billion budget in 2014 in the Eagle Ford.

The company will spend $735 million running 4-5 rigs, with plans to drill and complete 90-95 gross wells. Approximately half of the activity will target the Eagle Ford from the company's Gates Ranch leases.

As a result of Eagle Ford and Permian Basin growth, Rosetta expects production to grow 20-30% to 60,000-65,000 boe/d.

“The 2014 capital plan is structured to deliver between 20 and 30 percent combined production growth from our Eagle Ford and Delaware Basin assets. The program reflects increasing activity as we initiate broader scale horizontal development in Reeves County and further expand development in new areas of our current Eagle Ford position,” said Jim Craddock, CEO. “We will continue to focus our efforts on integrating our West Texas assets while continuing to efficiently execute the development of our Eagle Ford leases.”

Rosetta will run six rigs and spend $265 million in the Permian Basin in 2014.

Also read:Rosetta Has Yet To Complete 23% of Its Eagle Ford Wells

Fourth Quarter Operational Delays Impact Production

Rosetta's fourth quarter 2013 production was negatively affected several issues that are estimated to have lowered production by ~4,000 boe/d. Rosetta expects fourth quarter production will average 52,000 boe/d and full-year 2013 production will average 50,000 boe/d.

Operational issues on a third-party gathering system
Operational issues at a third-party processing plant
Wells shut-in due to adjacent well completions
Rosetta compressor station fire

Jim Craddock, CEO, commented, "Our strength is our people and our personnel have done a great job of minimizing the impacts of several external hurdles we faced this quarter. We look forward to discussing our fourth quarter results, as well as our outlook for 2014, with investors in February."

Comstock Resources Focused on the Eagle Ford in 2014 - Almost $400 Million Planned

December 18, 2013 R.T. Dukes

Comstock Resources will spend $394 million of the company's $450 million 2014 budget in the Eagle Ford.

The company will spend $264 million drilling 59 gross (40.2 net) wells in the South Texas Eagle Ford, $80 million completing wells in the South Texas area, and $50 million to drill 10 gross (5.6 net) East Texas Eagle Ford wells (Burleson County) for a total of $394 million.

Comstock Resources East Texas Eagle Ford Map

The East Texas Eagle Ford acreage located in Burleson County was acquired from Ursa Resources in late November 2013.

Outside of the company's drilling budget in the Eagle Ford, Comstock will spend $27 million in the Tuscaloosa Marine Shale and $29 million on facilities, recompletions, other capital projects.

As a result of budget allocations, oil production is expected to grow to 11,200-12,600 b/d and natural gas production is expected to fall to ~115 mmcfd.

Read the company's full press release at comstockresources.com

Goodrich Increases 2014 Budget by 50% & Is Shifting to the Tuscaloosa Marine Shale

October 16, 2013 R.T. Dukes

Goodrich Petroleum Eagle Ford and Pearsall Activity Map

Goodrich Petroleum will spend 44% or $100 million of the company's $255 million budget in 2013 in the Eagle Ford. That will change in 2014 when the company will spend just $30 million in the play.

The company plans to spend almost 50% more on development in 2014, but almost 75% or $300 million of the company's $375 million budget will be spent in the Tuscaloosa Marine Shale (TMS).

The Eagle Ford has helped drive an increase in oil production, but Goodrich only controls 45,000 gross (32,000 net) acres in the play. In the TMS, Goodrich controls more than 300,000 net acres across Louisiana and Mississippi. The shear size of the company's position makes the potential much greater.

Read the company's full release regarding its 2014 budget at goodrichpetroleum.com

Carrizo Expects The Eagle Ford To Drive Oil Production Growth Higher

July 26, 2013 R.T. Dukes

Carrizo Oil &Gas Eagle Ford Well Pad Map

Carrizo Oil & Gas raised oil production growth guidance from 28% to 40% earlier in the summer due to improving well results in the Eagle Ford.

The company also raised second quarter oil production guidance from ~9.800 boe/d to ~11,000 boe/d. That represents and increase of more than 12%. There were a few factors that led to the increase:

“Key drivers of the outperformance have been flatter-than-expected decline rates from new wells in a number of areas, successful results from artificial lift installations and less well downtime than expected.”

Oil production is outperforming expectations, while gas and NGL production is coming in at the high end of guidance. Carrizo increased its company-wide growth target from 6% to 10% for the year.

Carrizo is running three rigs in the Eagle Ford, one in the Niobrara Shale, and one in the Marcellus Shale. Along with production guidance, Carrizo increased its capital spending plans by ~$35 million to $530-540 million in 2013.

In the Eagle Ford Shale, Carrizo is increasing planned 2013 drilling activity by three wells as a result of increases in drilling efficiencies, and increasing planned completion activity by 35 net frac stages primarily for lease management purposes.

Read the full press release at crzo.net