Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Fri, 24 Jun 2016 18:21:30 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Sundance Energy Focuses on Eagle Ford http://eaglefordshale.com/news/sundance-energy-focuses-on-eagle-ford/ http://eaglefordshale.com/news/sundance-energy-focuses-on-eagle-ford/#respond Fri, 24 Jun 2016 18:21:30 +0000 http://eaglefordshale.com/?p=9984 Sundance Acquiring More Eagle Ford Assets

Sundance Acquiring More Eagle Ford Assets

Australia’s Sundance Energy is gobbling up more of the Eagle Ford as a major focus of its growth strategy.

Related: Japanese Company Buys Eagle Ford Assets

Sundance Energy Australia Limited announced today that it has entered into an agreement to acquire approximately 5,050 net acres targeting the Eagle Ford in McMullen County, Texas.

The $16.0 million deal is the third venture for Sundance in the Eagle Ford. The company also operates Choke Canyon Reservoir located in McMullen, Live Oak and Atascosa Counties and the Redemption Project located in Dimmit County. Before the announcement of this purchase, Sundance reported on their website that they held ~40,000 net acres in the Eagle Ford.

Chairmen Mike Hannell told shareholders “This prolonged period of depressed commodity prices has tested the resilience of the oil and gas industry. However, the Board and Management of Sundance Energy has not wavered from their overall strategy of building a sustainable growth business and delivering superior shareholder returns in the medium to longer term. A major focus of this strategy is to expand and develop our valuable portfolio of Eagle Ford assets.

The acquisition should be complete by late July and includes the following:

  • 27 gross (9.6 net) wells
  • Total proved reserves of approximately 3.0 mmboe, 1.4 mmboe of which are attributed to producing wells
  • Expected 2016 fourth quarter production of 8,600 – 9,500 boepd

On Tuesday, Tokyo Gas Co. announced that they have closed on their acquisition of ~25% interest in Eagle Ford shale gas assets from the VirTex group. The 34,000 acre assets are located in the Webb and La Salle counties of south Texas.

Read more at SundanceEnergy.com

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Japanese Company Buys Eagle Ford Assets http://eaglefordshale.com/news/japanese-company-buys-eagle-ford-assets/ http://eaglefordshale.com/news/japanese-company-buys-eagle-ford-assets/#respond Wed, 22 Jun 2016 20:14:53 +0000 http://eaglefordshale.com/?p=9980 Japanese Company Buys Eagle Ford Assets

Japanese Company Buys Eagle Ford Assets

Japan’s biggest city gas supplier has purchased a stake in the Eagle Ford Shale.

Related: Japan Eyes Eagle Ford Natural Gas

Tokyo Gas Co. announced on Tuesday that they have closed on their acquisition of ~25% interest in Eagle Ford shale gas assets from the VirTex group.

The 34,000 acre assets are located in the Webb and La Salle counties of south Texas.

According to a Japanese news source, the deal was worth more than 5 billion yen ($48 million), but the company press release indicates the investment will be higher.

“Tokyo Gas estimates that the net capital required to be some 75 million US dollars assuming the natural gas production for Tokyo Gas could average annual 0.20 million tons in the middle term, which depends on the pace of development. The produced gas is to be marketed in the US market.”

In June 2015, a delegation from the Consulate General of Japan toured Texas gas facilities in Freeport, Houston, Moulton and San Antonio. Many suspect that Japanese producers are looking to the Eagle Ford as a potential source of much needed natural gas since a 2011 earthquake wrecked a great deal of the country’s energy infrastructure.

This deal marks the the second time that Tokyo Gas has invested in U.S. shale. In 2013, the company bought another gas stake in the Barnett shale for $485 million.

Read more at Tokyo-Gas.co.jp

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Some Eagle Ford Towns Thriving http://eaglefordshale.com/news/eagle-ford-towns-thriving/ http://eaglefordshale.com/news/eagle-ford-towns-thriving/#respond Tue, 21 Jun 2016 14:11:50 +0000 http://eaglefordshale.com/?p=9971 Low oil prices and decreased production are not defining some Eagle Ford communities.

Related: UTSA: Eagle Ford Counties Must Diversify

Small towns and communities in the Eagle Ford Shale region of south Texas came alive with the oil boom of 2008 as populations exploded and new wealth flooded in. But as crude prices plunged throughout 2015, revenue streams to dried up and some Eagle Ford communities have fared better than others

Thomas Tunstall, the research director of the UTSA Institute for Economic Development, says that Eagle Ford towns who are now struggling can’t really blame the decline in oil and gas activity for their current economic woes. Back in 2015, Tunstall’s group released a study advising towns that long term planning and economic diversity were key to their survival.

Tunstall points to towns like Gonzales and Cotulla as great examples of towns who have worked to diversify.

“Gonzales has reinvented itself as a tourist destination because it’s the birthplace of the Texas Revolution,” he said. “Cotulla is building sports facilities and working on being designated as a Free Trade Zone to attract truckers.”

The UTSA Institute of Economic Development works to help towns develop strategies for growth and diversity. One of the agency’s initiatives is the Eagle Ford Shale Community Development Program, which trains local leaders how to think strategically. The program recently lost funding and is looking for ways to continue to help struggling Eagle Ford communities trying to make the transition to the new economy of lower crude prices.

Read more at utsa.edu 

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Oil & Gas ‘Threat Map’ Pinpoints Millions at Risk in Texas http://eaglefordshale.com/news/map-pinpoints-eagle-ford-risk/ http://eaglefordshale.com/news/map-pinpoints-eagle-ford-risk/#respond Mon, 20 Jun 2016 14:00:08 +0000 http://eaglefordshale.com/?p=9954 eagle ford gas threat

Map Showing Threat of Gas Exposure

Eagle Ford counties are at high risk for exposure to dangerous gas and air pollution, according to a newly released ‘threat map’ .

Related: EPA: Tougher Methane Emissions Approved

The new interactive map map highlights schools, hospitals and populations centers in 35 states that are located within 1/2 mile from dangerous natural gas drilling and production activity.

In order to create these maps, three environmental groups – Earthworks, Clean Air Task Force, and FracTracker Alliance -gathered EPA data and models that plot the location of all active oil & gas wells in the United States along with the types of pollutants and the numbers of people at risk.

According to the map’s website, “The map was created to make the public and decision makers aware that this type of air pollution is a ubiquitous health threat that should be addressed with strong government standards.”

The map of Texas details the 398,787 active oil and natural gas wells currently in use in the state with over 2.3 million people within the 1/2 mile radius of risk. The map highlights counties in the Eagle Ford as having the highest risk of exposure to methane and carcinogens including DeWitt, Karnes, McMullen, Frio and Zavala Counties.

Industry leaders are criticizing the map, with one official telling the Business Journal, “It is unfortunate that these organizations breed fear through the reckless dissemination of misinformation.”

In May, the EPA finalized the new rule that sets standards for methane leaks along the natural gas production line. Last summer, President Obama revealed a plan designed to cut greenhouse gas emissions 40 – 45 percent by 2025.

Industry leaders are critical of the ruling say they it is unnecessary and too costly. Oil and gas producers are critically fatigued from months of low crude prices and this new regulation will certainly not be sustainable for some. The EPA estimates that the ruling might cost the industry somewhere between $420 – $530 million.

See the interactive Texas map here

 

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Eagle Ford Rig Count on the Rise http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-on-the-rise/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-on-the-rise/#respond Sat, 18 Jun 2016 11:49:59 +0000 http://eaglefordshale.com/?p=9951 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Drop

The Eagle Ford Shale rig count rose by four this week, ending with 37 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Texas Lt. Gov. Dan Patrick has added his voice of support for Texas LNG Project, allowing more Eagle Ford gas to be shipped overseas.

Read more: Texas LNG Project

A total of 423 oil and gas rigs were running across the United States this week, an increase of 10 over last week. 85 were targeting natural gas (one more than the previous week) and 337 were targeting oil in the U.S. (nine more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 191 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs rose this week to six running across the Eagle Ford, wth natural gas prices also increasing to $2.62/mmbtu.

The Eagle Ford rigs targeting increased to 31 with WTI oil prices dipping to $47.98a $.46 decrease this week. A total of 33 rigs are drilling horizontal wells, one are drilling directional wells, and thre are vertical rigs.

Karnes County leads development in the region with 9 rigs running this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

County Previous Week Current Week County Previous Week Current Week
KARNES 9 9 COLORADO 0 0
DIMMIT 4 4 FAYETTE 0 0
LA SALLE 2 4 GOLIAD 0 0
WEBB 4 4 GRIMES 0 0
DE WITT 3 3 LAVACA 0 0
ATASCOSA 1 2 LEE 0 0
DUVAL 2 2 LEON 0 0
FRIO 2 2 MADISON 0 0
GONZALES 2 2 MAVERICK 0 0
LIVE OAK 1 2 MILAM 0 0
BURLESON 1 1 ROBERTSON 0 0
MCMULLEN 2 1 WASHINGTON 0 0
ZAVALA 0 1 WILSON 0 0
AUSTIN 0 0 BASTROP 0 0
BEE 0 0 BASTROP 0 0

 

Eagle Ford Shale News

Dan Patrick Adds Support for Texas LNG Project

Eagle Heights Development Takes Flight

TxDOT: $569 Million Needed for Eagle Ford Roads

 

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.

Read more at bakerhughes.com

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Eagle Heights Development Takes Flight http://eaglefordshale.com/news/eagle-heights-development-takes-flight/ http://eaglefordshale.com/news/eagle-heights-development-takes-flight/#respond Wed, 15 Jun 2016 23:46:17 +0000 http://eaglefordshale.com/?p=9938 eagle heights open house

Eagle Heights is a multifamily property specialized for the needs of the oilfield industry and includes three tiers of residential service.

Eagle Heights Development, a new upscale serviced apartment development in Pleasanton, Texas will be hosting an open house on June 23rd from 3-7 pm.

The brand new location is celebrating the grand opening of this new housing option, specifically designed and catered to the oil and gas industry and professionals.

The Pleasanton Chamber of Commerce will host a ribbon cutting for the new establishment and officials will offer an overview of the amenities and housing options available to professionals working in the area.

Guests will be treated to bar-b-que and beer at the event, with live music performed by the Chris Saucedo Band, a well-known and lively music group out of San Antonio. This celebration is meant to bring together business professionals from the area, energy companies that explore and produce in the Eagle Ford area, and city and state leaders for a demonstration of the benefits of the Eagle Heights Apartments.

“Eagle Heights was conceived and designed to serve the unmet housing needs of individuals unwilling to compromise on quality and companies looking for a local real estate partner to tackle their staffing and budgetary goals,” says Reuven Bisk, Chairman and Manager of Eagle Heights Development.

Along with the promise of a good time, the celebration will be of great educational benefit to the attendees. Fitting the name, Eagle Heights, the Texas-based group behind this new apartment community is committed to the majestic eagle and other birds of prey. For this reason, the group has committed to a $10,000 donation to the Last Chance Forever organization, a conservancy group for birds of prey, or raptEagle Heights in Pleasanton, Texas, is a multifamily property specalized for the needs of the oilfield industry and includes three tiers of residential service.ors. The development group is calling for other organizations and companies from the area to join them in their mission to aid these animals by contributing to the fund as well, and to be recognized equally as the Eagle Champions.

The Last Chance Forever organization will be attending the event and bringing several of their aid recipients with them, including a live eagle. Guests will have an opportunity to learn more about these majestic birds, their needs and how people can assist them. If any city were to be supportive of this breed, it would have to be Pleasanton, Texas – home of the Pleasanton Eagles. In so many ways, this new development, and the grand opening specifically, is connected to community surrounding them.

“Eagle Heights has structured itself to meet the long-term housing needs and goals of the City of Pleasanton and other Eagle Ford communities in order to help ensure their future development and growth,” says Bisk.

A dedication to the community is helping city leaders to understand the importance and benefits of the new development. The local Chamber of Commerce has shown support of this new development and has encouraged others to welcome this new opportunity which will spur growth and economic stimulation to the area.

“We are excited to welcome Eagle Heights Development to our town. With these new apartment complexes now built, the city of Pleasanton is able to offer businesses another great housing option.  With new infrastructure comes the opportunity to attract new businesses to our area and provide new jobs for our community,” says Kevin Aniol, President of the Pleasanton Chamber of Commerce.

Guests at the open house  will have the opportunity to take a self-guided tour through the Eagle Heights Apartments in addition to the Texas bar-b-que and beer, live music, and eagle education. With this tour, companies and professionals will learn about this new premium housing option and why it will be a good fit for their housing needs.

To learn more about this and other professional housing locations offered by Eagle Heights Development, visit www.eagleheightsdevelopment.com.

 

 

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Dan Patrick Adds Support for Texas LNG Project http://eaglefordshale.com/news/dan-patrick-adds-support-for-texas-lng-project/ http://eaglefordshale.com/news/dan-patrick-adds-support-for-texas-lng-project/#respond Mon, 13 Jun 2016 20:05:29 +0000 http://eaglefordshale.com/?p=9931 Dan Patrick Supports Texas LNG Project

Dan Patrick Supports Texas LNG Project

Texas Lt. Gov. Dan Patrick has added his voice of support for Texas LNG Project, allowing more Eagle Ford gas to be shipped overseas.

Related: More Eagle Ford LNG Headed Abroad

In a letter to the Federal Energy Regulatory Commission (FERC) back in May, Texas Lt. Gov. Dan Patrick wrote to express his ‘strong’ support for the proposed Texas LNG Brownsville project. Patrick’s letter appealed to the economic benefits of the project, including a substantial tax revenue increase for state and local governments.

Patrick wrote, “the Texas LNG Project is expected to create 700 regional construction jobs over the approximately 58-month construction period. This project represents approximatley $1.3 billion in direct investment and approximately $2 billion in value to the region’s economy during the first 10 years of operation. It is expected to increase state and local tax revenue by more than $10 million annually.”

Texas LNG applied in March and anticipates receiving final approval in 2017. Once approved, operators will be able to transport natural gas from the Eagle Ford Shale down to the Port of Brownsville where it will be liquified and shipped overseas. They anticipate their first exports will be in 2020.

Environmentalists and other groups are opposing the project due to concerns over safety and air pollution.

Read more at BizJournal.com

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Eagle Ford Rig Count Up for 2nd Week in a Row http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-up/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-up/#respond Sat, 11 Jun 2016 17:58:32 +0000 http://eaglefordshale.com/?p=9926 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Drop

The Eagle Ford Shale rig count increase for the second week in a row, ending with 33 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Devon Energy executives reported a solid first quarter with the highest margins coming from their Eagle Ford assets. The company’s focus has them on track to produce cost saving of more than $1 billion this year.

Read more:Devon: Eagle Ford Brings Highest Margins

A total of 413 oil and gas rigs were running across the United States this week, an increase of six over last week. 85 were targeting natural gas (three more than the previous week) and 328 were targeting oil in the U.S. (three more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 178 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs rose this week to four running across the Eagle Ford, while natural gas prices increased to $2.59/mmbtu.

The Eagle Ford rigs targeting oil held steady at 29 with WTI oil prices inching up to $48.44, a $.38 increase this week. A total of 31 rigs are drilling horizontal wells, zero are drilling directional wells, and two are vertical rigs.

Karnes County leads development in the region with 9 rigs running this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

County Previous Week Current Week County Previous Week Current Week
KARNES 8 9 COLORADO 0 0
DIMMIT 4 4 FAYETTE 0 0
WEBB 3 4 GOLIAD 0 0
DE WITT 3 3 GRIMES 0 0
DUVAL 2 2 LAVACA 0 0
FRIO 3 2 LEE 0 0
GONZALES 3 2 LEON 0 0
LA SALLE 1 2 MADISON 0 0
MCMULLEN 2 2 MAVERICK 0 0
ATASCOSA 1 1 MILAM 0 0
BURLESON 1 1 ROBERTSON 0 0
LIVE OAK 1 1 WASHINGTON 0 0
AUSTIN 0 0 WILSON 0 0
BEE 0 0 ZAVALA 0 0
BRAZOS 0 0 BASTROP 0 0

Eagle Ford Shale News

Devon: Eagle Ford Brings Highest Margins

More Eagle Ford LNG Headed Abroad

TxDOT: $569 Million Needed for Eagle Ford Roads

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.

Read more at bakerhughes.com

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TxDOT: $569 Million Needed for Eagle Ford Roads http://eaglefordshale.com/news/569-million-for-eagle-ford-roads/ http://eaglefordshale.com/news/569-million-for-eagle-ford-roads/#respond Thu, 09 Jun 2016 20:56:48 +0000 http://eaglefordshale.com/?p=9916 2016-06-09_1559TxDOT says it needs to spend $569 million to improve Eagle Ford roadways, according to a presentation released by the agency.

Related: Eagle Ford County Roads a Mess

In small towns all across the Eagle Ford, oil and gas activity has left a mess of the county roads system. Poor road conditions, increased traffic and heavy equipment brought on by the oil boom have contributed to the unsafe conditions.

In March, TxDOT began a new initiative to address these issues state-wide in hopes to provide safety enhancements on roadways across the state’s energy regions.

The improvements will include:

  • Strengthening pavement structures
  • Adding shoulders to protect pavement edges
  • Adding turn lanes at key intersections
  • Constructing passing lanes on Super 2 corridors
TxDOT’s website says, “TxDOT districts have identified energy sector projects, by prioritizing corridor segments that cross multiple districts, directly connect energy sector activity nodes or have high frequencies of injury or fatal crashes. TxDOT categorized these identified corridors into Priority 1 and Priority 2 groups based on the improvements needed. The table shows current estimates for Priority 1 funding needs in the five major energy sector regions.”

Eagle Ford Shale corridor priorities include:

  • SH 97 (LRD, SAT, YKM)
  • SH 72 (CRP, YKM)
  • US 83 (LRD, SAT)
  • US 59 (LRD, CRP, YKM)
  • SH 16 (SAT, LRD)
  • SH 85 (LRD, SAT)
  • US 183 (CRP, YKM)
  • US181/SH123 (CRP, SAT)

Roads in the Eagle Ford Shale are under intense pressure from the huge volumes of truck traffic that are regularly running up and down South Texas highways – literally hundreds of trips per day in many cases. And, often, the counties have not been able to keep up with the problems caused by the increased volume.

Read the full presentation here

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More Eagle Ford LNG Headed Abroad http://eaglefordshale.com/news/eagle-ford-lng-headed-abroad/ http://eaglefordshale.com/news/eagle-ford-lng-headed-abroad/#respond Tue, 07 Jun 2016 19:22:33 +0000 http://eaglefordshale.com/?p=9904 LNG Exports to non-Free Trade Countries

LNG Exports Headed to non-Free Trade Countries

Federal officials give the go-ahead for one Texas refinery to ship Eagle Ford LNG around the world.

Related: Natural Gas Will be a Boom for Eagle Ford Companies

The U.S. Department of Energy has authorized Flint Hills Resources to export liquefied natural gas (LNG) to countries that do not hold a free trade agreement (non-FTA) with the U.S. The order allows Flint to export LNG 3.62 billion cubic feet of natural gas per year over the next 20 years.

Flint Hills plans to purchase the LNG from Stabilis LNG, which is located in Live Oak County.

In April, the U.S. Senate passed the Energy Policy and Modernization Act designed to increase U.S. exports of liquefied natural gas (LNG).

Center for Liquefied Natural Gas (CLNG) Executive Director Charlie Riedl said “Exporting our surplus natural gas overseas will not only benefit our allies abroad, it will also drive significant investment into the domestic economy while making sizeable reductions in global greenhouse gas emissions. The shale revolution has fundamentally transformed the American energy landscape; LNG exports now represent an opportunity to allow the rest of the world to benefit.”

Eagle Ford midstream companies are looking to prosper as natural gas exports overtake imports over the next 16 months. The state is in the middle of a massive LNG export terminal buildout along the Gulf Coast.

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