Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Thu, 28 Apr 2016 16:53:24 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Pioneer Waiting on $50 Oil for Eagle Ford http://eaglefordshale.com/news/pioneer-waiting-on-50-oil-for-eagle-ford/ http://eaglefordshale.com/news/pioneer-waiting-on-50-oil-for-eagle-ford/#respond Wed, 27 Apr 2016 16:07:35 +0000 http://eaglefordshale.com/?p=9713 Pioneer Earnings Report

Pioneer First Quarter Earnings

Pioneer Natural Resources announces first quarter results and hints that they might restart Eagle Ford activity when crude hits $50.

Related: Pioneer Halts Eagle Ford Drilling

In February, Pioneer announced they were halting all drilling in the Eagle Ford due to severe downturn. But in an earnings call this week, executives gave some hints about their plans for their South Texas assets.

Scott Sheffield, Chairman and CEO commented, “…so if WTI gets to $50 we would look at restarting Eagle Ford. We’ll have to make a decision at the time if we had 10 rigs for instance and 17, do we take two of those rigs and put them in the Eagle Ford? But, I could see us adding a couple of rigs in Eagle Ford.”

For the first quarter of 2016, Pioneer Natural Resources had an adjusted loss of $104 million alongside record production. Other Q1 highlights include:

  • Production: 222,000 barrels of oil equivalent per day. Oil production is up 10,000 barrels of oil per day or 9% versus the fourth quarter of 2015.
  • 55 horizontal wells on production in the Spraberry/Wolfcamp
  • Reduced combined production cost and G&A expense per barrel oil equivalent (BOE) by 15% compared to the fourth quarter of 2015
  • starting up the new Targa-operated Spraberry/Wolfcamp gas processing plant, which has a capacity of 200 million cubic feet per day (MMCFPD); and
  • increasing oil and gas derivative coverage for 2017.

Pioneer plans to keep capital expenditures at $2 billion for 2016, $1.5 billion for drilling and $150 million for vertical integration systems upgrades and field facilities.

Read more at pxd.com

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Will Koch Restart Pipeline? http://eaglefordshale.com/news/will-koch-restart-pipeline/ http://eaglefordshale.com/news/will-koch-restart-pipeline/#respond Mon, 25 Apr 2016 22:49:37 +0000 http://eaglefordshale.com/?p=9707
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Eagle For Rig Counts Slips to 40 http://eaglefordshale.com/drilling-rig-count/eagle-for-rig-counts-slips-to-40/ http://eaglefordshale.com/drilling-rig-count/eagle-for-rig-counts-slips-to-40/#respond Sat, 23 Apr 2016 12:40:19 +0000 http://eaglefordshale.com/?p=9702 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Hold Steady

The Eagle Ford Shale rig count fell by two, ending the week with 40 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Goodrich Petroleum announced that they are seeking to eliminate approximately $400 million in debt through a Chapter 11 restructuring plan.

Read more:Goodrich Petroleum Files for Chapter 11

A total of 431 oil and gas rigs were running across the United States this week, down one from last week. 88 were targeting natural gas (seven more than the previous week) and 343 were targeting oil in the U.S. (eight less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 187 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 increased in the Eagle Ford remained at five this week as natural gas prices jumped to $2.14/mmbtu.

The Eagle Ford rigs targeting oil fell this week to 35 as WTI oil prices continue their climb, ending the week at $43.73a 3.37 increase this week. A total of 38 rigs are drilling horizontal wells, zero are drilling directional wells, and two are vertical rigs.

Karnes and Webb counties both lead development in the region each running with 10 rigs. 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 11 10 FAYETTE 0 0
WEBB 10 10 FRIO 0 0
LA SALLE 7 7 GOLIAD 0 0
DE WITT 3 5 GRIMES 0 0
DIMMIT 2 2 LAVACA 0 0
GONZALES 3 2 LEE 0 0
ZAVALA 3 2 LEON 0 0
ATASCOSA 2 1 LIVE OAK 0 0
MAVERICK 0 1 MADISON 0 0
AUSTIN 0 0 MCMULLEN 0 0
BEE 1 0 MILAM 0 0
BRAZOS 0 0 ROBERTSON 0 0
BURLESON 0 0 WASHINGTON 0 0
COLORADO 0 0 WILSON 0 0
DUVAL 0 0 BASTROP 0 0

Eagle Ford Shale News

Oil Import Quotas Proposed

Abraxas: 20% Pay Cuts for Top Executives

Goodrich Petroleum Files for Chapter 11

 

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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Oil Import Quotas Proposed http://eaglefordshale.com/news/oil-import-quotas-proposed/ http://eaglefordshale.com/news/oil-import-quotas-proposed/#respond Thu, 21 Apr 2016 19:49:35 +0000 http://eaglefordshale.com/?p=9690 A grassroots movement in the Texas panhandle pushing back against OPEC by calling for quotas on oil and gas imports.

Related: Iranian Oil Will Add to Global Glut

Several pro-industry groups in the Texas panhandle have come together to create the Panhandle Import Reduction Initiative, an effort to propose a ban on shale oil imports from abroad. The group is working to gather signatures and raise $100,000 that will allow them to present the plan to the next president after the elections in 2017.

Supporters of the initiative are angry that oil-producing countries failed to reach an agreement to freeze oil production levels Sunday in Doha, Qatar and the announcement that OPEC will increase production again.

Oil and gas strategist, Daniel Fine commented that “What we propose to the country and to the industry is a return to President Eisenhower in 1959, when he, by proclamation, established import quotas on foreign oil,” Fine said. “We will take care of Canada, our hemispheric ally. But OPEC, no. We’re going to rigorously put quotas on the import of oil.”

In 1959, President Eisenhower stablished a similar quota system that remained in effect for 14 years in order to sustain a healthy oil industry for national security purposes.

In January, the Obama Administration entered into an historic and controversial nuclear deal with Iran that includes lifting economic sanctions, which could add millions of barrels to the global glut.

Read more at PRnewswire.com

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Abraxas: 20% Pay Cuts for Top Executives http://eaglefordshale.com/news/abraxas-pay-cuts/ http://eaglefordshale.com/news/abraxas-pay-cuts/#respond Tue, 19 Apr 2016 19:58:52 +0000 http://eaglefordshale.com/?p=9669 Abraxas Pay Cuts

Abraxas Execs Receive 20% Pay Cuts

In the wake of a rough 2015, Abraxas Petroleum’s top executives are taking serious measures to shore up the company’s bottom line, including pay cuts and deferred bonuses of over $1 million

Related: Abraxas Chief Slashes Salary

According to a recent filing with the U.S. Securities & Exchange Commission, the leaders of this Eagle Ford producer are taking deep cuts in order to keep the company afloat.

At the end of 2014, CEO, Robert Watson anticipated a tumultuous 2015 and announced he would voluntarily cut his salary by 20 percent due to stressful market conditions. The recent filing confirms that Watson and the other executives all took 20 percent pay cuts.

“Given the currently depressed nature of the oil and gas industry, as well as Abraxas’ 2015 stock price and operational performance, the Compensation Committee deferred its decision on paying 2015 bonuses. At this time the Compensation Committee does not expect that 2015 bonuses will be paid unless industry conditions materially improve.”

For 2015, Abraxas reported the following highlights for its Eagle Ford operations:

  • Wells from Atascosa and McMullen Counties produced from 8,000 to 11,000 feet
  • Two Eagle Ford wells drilled and completed by the summer of 2015
  • Dropped 38 South Texas Eagle Ford proved undeveloped cases from our reserve report due to lack of economic viability at the lower commodity prices. (Approximately 7.8 MMBOE of net reserves
  • Average oil production 305,797 (Bbls)
  • Average Gas production 325,942 (Mcf)
Abraxas pay cuts

click to enlarge

Read more at AbraxasPetroleum.com

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Goodrich Petroleum Files for Chapter 11 http://eaglefordshale.com/news/goodrich-petroleum-files-for-chapter-11/ http://eaglefordshale.com/news/goodrich-petroleum-files-for-chapter-11/#respond Mon, 18 Apr 2016 20:31:22 +0000 http://eaglefordshale.com/?p=9668 Goodrich Petroleum Files Chapter 11

Goodrich Petroleum Files Chapter 11

The energy slump has claimed another victim as the Eagle Ford Producer, Goodrich Petroleum, files for bankruptcy.

Related: Goodrich Finalizes Eagle Ford Deal

Goodrich Petroleum announced this week that it was seeking to eliminate approximately $400 million in debt through a Chapter 11 restructuring plan.

In January, the struggling company was removed from the NYSE based on abnormally low price levels.

Has your oil & gas producer filed bankruptcy? Learn how to protect yourself.

“Prior to the Chapter 11 filing, the Company attempted to restructure its balance sheet through voluntary exchange offers, with the latest effort unsuccessful due to the inability to get the necessary approvals from its common stockholders, preferred stockholders and unsecured noteholders.”

In September, Goodrich announced it would sell much of its Eagle Ford Shale acreage to Houston-based EP Energy for $118 million and included property in LaSalle and Frio Counties, Texas. The sale was a last ditch effort by Goodrich to keep the itself afloat and pay off existing debt.

Other recent Eagle Ford bankruptcies include Magnum Hunter, Swift Energy and Sabine Oil & Gas. Last month a New York judge ruled in that Sabine Oil & Gas would be able to cancel the contracts it holds with midstream firms as part of its restructuring process during bankruptcy. Many are concerned that this decision will encourage other struggling producers to follow suite and file for bankruptcy if they know they can get out of such obligations.

Read more at GoodrichPetroleum.com

 

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Eagle Ford Rig Count Falls to 42 http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-falls-to-42/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-falls-to-42/#respond Fri, 15 Apr 2016 20:40:15 +0000 http://eaglefordshale.com/?p=9662 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Hold Steady

The Eagle Ford Shale rig count decreased by four, ending the week with 42 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, the Texas Comptroller announced that low crude prices triggered a 50% severance tax exemption on low producing ‘stripper’ wells.

Read more: Tax Breaks for Low Producing Wells

A total of 432 oil and gas rigs were running across the United States this week, which is a drop of 11 over last week. 81 were targeting natural gas (eight more than the previous week) and 351 were targeting oil in the U.S. (three less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 194 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 increased in the Eagle Ford remained at five this week as natural decreasing slightly trading at $1.90/mmbtu.

The Eagle Ford rigs targeting oil fell by four this week to 37 with WTI oil prices landing at $40.36,  a 3.57 increase this week. A total of 40 rigs are drilling horizontal wells, zero are drilling directional wells, and two are vertical rigs.

Karnes County continues to lead the region in development with 11 running rigs. 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 11 11 FRIO 0 0
WEBB 10 10 GOLIAD 0 0
LA SALLE 6 7 GRIMES 0 0
DE WITT 5 3 LAVACA 0 0
GONZALES 3 3 LEE 0 0
ZAVALA 3 3 LEON 0 0
ATASCOSA 2 2 LIVE OAK 0 0
DIMMIT 3 2 MADISON 2 0
BEE 0 1 MAVERICK 0 0
AUSTIN 0 0 MCMULLEN 0 0
BRAZOS 0 0 MILAM 0 0
BURLESON 0 0 ROBERTSON 0 0
COLORADO 0 0 WASHINGTON 0 0
DUVAL 1 0 WILSON 0 0
FAYETTE 0 0 BASTROP 0 0

Eagle Ford Shale News

Phoenix Natural Resources to Focus on Eagle Ford

Tax Breaks for Low Producing Wells

Texas Oil & Gas Permits Drop

 

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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Phoenix Natural Resources to Focus on Eagle Ford http://eaglefordshale.com/news/phoenix-natural-resources-to-focus-on-eagle-ford/ http://eaglefordshale.com/news/phoenix-natural-resources-to-focus-on-eagle-ford/#respond Thu, 14 Apr 2016 17:53:44 +0000 http://eaglefordshale.com/?p=9652 It’s been a tough year in the oil and gas industry, but as the downturn continues to claim victims, some companies are still betting on the Eagle Ford.

Related: Clayton Williams Stops Eagle Ford Drilling

Phoenix Natural Resources, LLC , a newly-formed independent oil and gas company, just announced new plans to focus on development on the Eagle Ford after receiving a $250 million equity commitment from Kayne Anderson Energy Funds.

Headquartered in Houston, Texas, Phoenix will pursue acquisitions of oil and gas assets with scalable exploitation and development upside. The Company will consider acquisition and redevelopment opportunities throughout select North American basins with an initial focus on the Eagle Ford.

Phoenix is  led by Russell Parker, CEO; Jim Mooney, CFO; Ray Ambrose, SVP of Engineering; Chad England, SVP of Operations; and Mark Hargis, SVP of Geology.  The management team brings their extensive technical and operational expertise into this new venture.

Other companies to receive equity commitments this year include:

  • Invictus Energy LLC :$150 million from Kayne Anderson
  • Percussion Petroleum LLC:$50 million from energyCarnelian Energy Capital Management LP
  • WaterBridge Resources LLC: $200 million from Five Point Capital Partners LLC

Several producers have pulled back their activity in the Eagle Ford. Earlier this year, Clayton Williams executives announced they had limited their drilling and completion activities to combat the downturn and expect to reduce capital spending further in 2016. Abraxas Petroleum Corp. announced they will focus the remainder of 2016 on their Bakken assets while scouting opportunities to sell Texas properties.

Read more at BusinessWire.com

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Tax Breaks for Low Producing Wells http://eaglefordshale.com/news/9643/ http://eaglefordshale.com/news/9643/#respond Tue, 12 Apr 2016 19:10:36 +0000 http://eaglefordshale.com/?p=9643 Severance Tax Breaks for  Stripper Wells

Severance Tax Breaks for Stripper Wells

The prolonged downturn means tax breaks for some producers.

Related: Eagle Ford School Districts Give Back Millions

In 2005, Texas lawmakers created a tax credit to bring relief to oil producers with low-producing wells. The tax break was set to trigger when oil prices dropped below a certain levels, a move designed to keep marginal wells in production during hard times.

Those hard times are now here and in February, the Texas Comptroller announced that low crude prices have triggered a 50% severance tax exemption on these ‘stripper wells.

The Texas Tax Code classifies a ‘qualifying low-producing oil lease’ as an oil well that is part of a lease whose production during a 90-day period is less than 15 barrels of oil per day of production or five percent recoverable oil per barrel of produced water.”

The amount of severance tax credit for qualified wells is tied to oil prices: 

  • 25% credit: average taxable oil price were above $25 per barrel but not more than $30
  • 50% credit: if the price were above $22 per barrel but not more than $25.
  • 100% credit: tax credit if the price were $22 or less

Currently in Texas, the severance tax for oil production is 4.6% of the oil’s market value. According to the Texas Comptroller’s Office, the state took in nearly $2.9 billion in oil production taxes in 2015, down 25.% from 2014.

well exemptions

Read more at comptroller.tx.gov

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Texas Oil & Gas Permits Drop http://eaglefordshale.com/news/texas-oil-gas-permits-drop/ http://eaglefordshale.com/news/texas-oil-gas-permits-drop/#respond Mon, 11 Apr 2016 20:55:48 +0000 http://eaglefordshale.com/?p=9630 Eagle Ford Shale March 2016Well permits and completions across Texas are at about 50% less than this time last year, according to the Texas Railroad Commission.Related: Eagle Ford Counties Lead ProductionSince the beginning of the year, the Texas Railroad Commission (RRC) has issued 1,594 permits for wells throughout Texas. This is in contrast to the 2,949 issued between January and March of 2015.

For March alone, the agency issued a total of 511 original drilling permits that included 129 oil, 30 gas, 312 oil or gas, 30 injection and 10 other. This was a drop from 923 in March 2015.

The Eagle Ford Shale rig count increased by one last week ending at 48 rigs running across our coverage area by midday Friday with Karnes County topping the list with 11 rigs.

2016-04-11_1553
Total well completions for 2016 year to date are 3,452 down from 5,946 recorded during the same period in 2015.
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