Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Mon, 30 May 2016 12:13:20 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Happy Memorial Day 2016 http://eaglefordshale.com/news/happy-memorial-day-2016/ http://eaglefordshale.com/news/happy-memorial-day-2016/#respond Mon, 30 May 2016 12:13:20 +0000 http://eaglefordshale.com/?p=9862 Honoring Our Fallen Heroes

Honoring Our Fallen Heroes

Wishing you a safe and happy Memorial Day.

Please take a minute today to remember those who sacrificed so much for our quality of life.

One veteran’s perspective on what this day means to him.

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Eagle Ford Rig Count Slips by One http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-slips-by-one/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-slips-by-one/#respond Fri, 27 May 2016 18:51:33 +0000 http://eaglefordshale.com/?p=9858 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Drop

The Eagle Ford Shale rig count fell by one this week, ending with 31 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Earthstone Energy executives express optimism that they can increase their Eagle Ford activity this summer as crude prices continue to move higher.

Read more: Earthstone Energy Looks to Resume Eagle Ford Activity

 

A total of 403 oil and gas rigs were running across the United States this week, down nine from last week. 87 were targeting natural gas (two more than the previous week) and 316 were targeting oil in the U.S. (two less that the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 173 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 in the Eagle Ford dropped to three this week as natural gas prices climb to $2.17/mmbtu.

The Eagle Ford rigs targeting oil stayed flat at 28 with WTI oil prices climbing to $49.27, a $1.28 increase this week. A total of 30 rigs are drilling horizontal wells, zero are drilling directional wells, and one are vertical rigs.

Karnes County leads development in the region with 8 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 8 COLORADO 0 0
DIMMIT 4 4 FAYETTE 0 0
DE WITT 3 3 GOLIAD 0 0
GONZALES 3 3 GRIMES 0 0
WEBB 5 3 LAVACA 0 0
FRIO 2 2 LEE 0 0
LA SALLE 1 2 LEON 0 0
MCMULLEN 2 2 MADISON 0 0
ATASCOSA 1 1 MAVERICK 0 0
BURLESON 0 1 MILAM 0 0
DUVAL 1 1 ROBERTSON 0 0
LIVE OAK 0 1 WASHINGTON 0 0
AUSTIN 0 0 WILSON 0 0
BEE 1 0 ZAVALA 0 0
BRAZOS 0 0 BASTROP 0 0

Eagle Ford Shale News

Earthstone Energy Looks to Resume Eagle Ford Activity

EnerVest Grabs Eagle Ford Assets for $1.3 Billion

Kinder Morgan: Eagle Ford Production Down 28%

Texas Royalty Owners Win $52.5 Million

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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Texas Royalty Owners Win $52.5 Million http://eaglefordshale.com/news/texas-royalty-owners-win-52-5-million/ http://eaglefordshale.com/news/texas-royalty-owners-win-52-5-million/#respond Thu, 26 May 2016 18:47:09 +0000 http://eaglefordshale.com/?p=9855 Chesapeake to pay mineral owners

Texas Royalty Owners Win Big

Chesapeake Energy and Total E&P have agreed to pay $52.5 million to landowners who were cheated out of natural gas royalties.

Related: Chesapeake Owes Fort Worth School District $1 Million

The two energy companies announced on Monday that they will settle lawsuits filed by 13,000 property owners on Tarrant and Johnson counties.

“We are pleased to have reached a mutually acceptable resolution of this legacy issue and look forward to further strengthening our relationships with our royalty owners,” Chesapeake spokesman Gordon Pennoyer said in a prepared statement.

Chesapeake is ordered to pay $29.3 million, with Tootal paying $13.1 million in cash. Chesapeake will pay another $10 million in three years.

McDonald law firm and Cicelli, Walter & Young represent the plaintiffs, who must still approve the deal by a vast majority (90%). Payments will vary based on production and lease language and will likely range from a few hundred to several thousand dollars.

In April, Chesapeake Energy revealed they would pay the Fort Worth School District $1 million in royalties after reaching an out-of-court settlement from a 2014 case where the school district. The company had improperly deducted expenses from royalties owed to the district and its taxpayers.

Read more at Star-Telegram.com

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Kinder Morgan: Eagle Ford Production Down 28% http://eaglefordshale.com/news/kinder-morgan-eagle-ford-production-down-28/ http://eaglefordshale.com/news/kinder-morgan-eagle-ford-production-down-28/#respond Wed, 25 May 2016 18:24:01 +0000 http://eaglefordshale.com/?p=9850 Kinder Morgan Earnings Report

Kinder Morgan Releases First Quarter Earnings

Kinder Morgan has lowered its 2016 guidance due to a 28% decline in production from their Eagle Ford shale assets.

Related: Penn Virginia Corp. Files Chapter 11

In an earnings call last week, Kinder Morgan chief executive Steve Kean reported a good first quarter with cash flows in excess of $1.2 billion plus a reduction in their growth capital backlog from $18.2 billion at the end of the fourth quarter 2015 to $14.1.

Kinder Morgan’s combined oil production across all of our fields was down 7% in the first quarter, averaging 56.4 MBbl/d, down 6 percent from 59.8 MBbl/d for the same period in 2015.

The Houston-based company lowered its overall 2016 earnings guidance by 3%, attributing over half of that to the declines in the Eagle Ford volumes.

“While Eagle Ford volumes declined overall, and we are projecting declines on our assets going forward, we have seen volumes grow on our KMCC (Kinder Morgan Crude and Condensate) pipeline,” Kean said. The 300,000 b/d line, which carries Eagle Ford liquids to the Gulf coast, is starting to see volumes slow. “We think we’ve just started to see some flattening on that pipeline, but what we’ve done on this pipe is essentially grow our market share.”

Read more at KinderMorgan.com

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EnerVest Grabs Eagle Ford Assets for $1.3 Billion http://eaglefordshale.com/news/enervest-grabs-eagle-ford-assets-for-1-3-billion/ http://eaglefordshale.com/news/enervest-grabs-eagle-ford-assets-for-1-3-billion/#respond Tue, 24 May 2016 19:15:34 +0000 http://eaglefordshale.com/?p=9845 EnerVest Ltd. increases their Eagle Ford Shale assets in new deals worth $1.3 billion.

Related: Producers Defend Fracking Practices

In a recent press release, Houston-based EnerVest Ltd, announced they had completed the last in a three-part purchase on Eagle Ford assets in a concentrated part of Karnes County.

In the latest deal, expected to close in June, EnerVest will acquire  7,056 net acres from BlackBrush Oil and Gas LP. The assets include 341 drilling locations and produce 5,170 barrels of oil equivalent per day.

Since 2015, EnerVest has been gobbling up acres and assets in the Eagle Ford including:

  • April 29, 2016
    • 4,198 net acres from affiliates of San Antonio-based GulfTex
    • 256 drilling locations
    • Produce 8,568 barrels of oil equivalent per day
  • Fall 2015
    • $125 million purchase of Houston-based Alta Mesa Holdings LP’s
    • 1,760 net acres with 278 drilling locations and 7.8 million barrels of oil equivalent of reserves
    • Producing 2,200 barrels of oil equivalent per day

“This is a great time in the commodity price cycle to buy oil assets, especially in the core of one of the hottest plays in the U.S.,” John Walker, EnerVest CEO, said in a statement. “With stacked reservoirs of the Lower Eagle Ford, the Upper Eagle Ford and the Austin Chalk, we see plenty of development opportunities at today’s prices. 

In June, Enervest executives were summoned to Austin to try and persuade the Texas Railroad Commission that their operations are not to blame for recent earthquakes in North Dallas. The company was eventually cleared of any wrong doing in relation to a link between fracking and the Dallas quakes.

Read the press release here

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Earthstone Energy Looks to Resume Eagle Ford Activity http://eaglefordshale.com/news/earthstone-energy-looks-to-resume-eagle-ford-activity/ http://eaglefordshale.com/news/earthstone-energy-looks-to-resume-eagle-ford-activity/#respond Mon, 23 May 2016 18:50:29 +0000 http://eaglefordshale.com/?p=9835 Earthstone Energy Earnings Report

Earthstone Energy First Quarter Earnings

Earthstone Energy executives express optimism that they can increase their Eagle Ford activity this summer as crude prices continue to move higher.

Related: Earthstone Reports ‘Decent’ Q4

The Woodlands-based company announced a challenging first quarter that included a 7% decrease in production. The company made crucial due to decisions to defer certain capital expenditures throughout the quarter due to weaknesses brought on by crude prices.

Robert Anderson – Executive Vice President, commented, “This decrease was due to lack of completion activity on the 12 Eagle Ford wells that we have drilled, but are waiting on completion along with natural declines on well drilled in 2015 and the fact that we chose to allow flowing wells to continue to produce at lower rates as a result of postponing the capital expenditures for installing artificial lift on those flowing wells.”

2016 Q1 highlights:

  • Average daily production of 3,576 Boepd
  • Total revenue of $8.9 million, which includes the effects of realized hedges
  • Lease operating expense decreased 30% relative to the first quarter of 2015
  • Adjusted EBITDAX(1) of $1.9 million

Read more about Earthstone in the Eagle Ford

Eagle Ford Operations

Approximately 60% of Earthstone’s operated Eagle Ford acreage is held by production. The Company has 12 gross Eagle Ford locations waiting on completion from four units.

For the rest of 2016, the company has allotted $4.0 million to spend on the Eagle Ford.

“With price improvement, we believe we can ramp up production with our frac inventory while re-establishing drilling activities. We will likely complete our four-well Boggs Unit in Karnes County this summer.”

Last week, Earthstone announced it had completed their acquisition of Lynden Energy Corp anticipating production of approximately 4,900 barrels of oil equivalent per day.

Read more at EarthstoneEnergy.com

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Eagle Ford Rig Count at 32 http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-at-32/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-at-32/#respond Fri, 20 May 2016 18:55:15 +0000 http://eaglefordshale.com/?p=9827 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Drop

The Eagle Ford Shale rig count dropped this week, ending with 32 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, a national non-profit that helps oilfield families in critical need of financial assistance has opened a new chapter to serve families in the Eagle Ford.

Read more: Oilfield Helping Hands Serving Eagle Ford

A total of 403 oil and gas rigs were running across the United States this week, down nine from last week. 85 were targeting natural gas (two less than the previous week) and 318 were targeting oil in the U.S. (the same as the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 173 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 in the Eagle Ford dropped to four this week as natural gas prices dipping to $2.05/mmbtu.

The Eagle Ford rigs targeting oil fell this week to 28 with WTI oil prices climbing to $47.91, a $1.78 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 10 9 FAYETTE 0 0
WEBB 7 5 GOLIAD 0 0
DIMMIT 4 4 GRIMES 0 0
DE WITT 3 3 LAVACA 0 0
GONZALES 2 3 LEE 0 0
FRIO 2 2 LEON 0 0
MCMULLEN 2 2 LIVE OAK 0 0
ATASCOSA 1 1 MADISON 0 0
BEE 1 1 MAVERICK 0 0
DUVAL 1 1 MILAM 0 0
LA SALLE 1 1 ROBERTSON 0 0
AUSTIN 0 0 WASHINGTON 0 0
BRAZOS 0 0 WILSON 0 0
BURLESON 0 0 ZAVALA 0 0
COLORADO 0 0 BASTROP 0 0

Eagle Ford Shale News

Oilfield Helping Hands Serving Eagle Ford

Penn Virginia Corp. Files Chapter 11

Carrizo to Increase Eagle Ford Activity

Baytex Energy: Big Results in Eagle Ford

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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Penn Virginia Corp. Files Chapter 11 http://eaglefordshale.com/news/penn-virginia-corp-files-chapter-11/ http://eaglefordshale.com/news/penn-virginia-corp-files-chapter-11/#respond Thu, 19 May 2016 18:26:37 +0000 http://eaglefordshale.com/?p=9823 Penn Virginia Files for Chapter 11

Penn Virginia Files for Chapter 11

Eagle Ford producer, Penn Virginia Corporation has filed for chapter 11 protection.

Related: More Oil & Gas Bankruptcies Likely

On May 12th, Penn Virginia Corporation announced that it had filed voluntary petitions for relief under chapter 11 in order to reduce the Company’s long-term debt by more than $1 billion. As part of the filing, the company asked the Court to allow them to continue its ongoing employee compensation and benefit programs.

“Like many other exploration and production companies, Penn Virginia has been significantly affected by the recent and continued dramatic decline in oil and natural gas prices.  We believe using the chapter 11 process is the most efficient way to achieve our financial objectives and deleverage the Company’s balance sheet,” said CEO, Mr. Cloues.

Eagle Ford Operations

Penn Virginia’s primary focus is on its operations in the Eagle Ford Shale holding approximately 100,000 net acres in Gonzales and Lavaca Counties. The company did not release a 2015 Q4 statement, but their website states that they planned to utilize one operated drilling rig in the Eagle Ford Shale for the remainder of 2016.

Join the Discussion: How Will Oil Company Bankruptcy Affect Me As A Royalty Owner

In January, Penn Virginia suspended trading on the NYSE and began delisting procedures.

Oil and gas bankruptcies continue to rise as the fallout of low crude prices takes its toll. Halcón Resources Corp. announced today that they have reached an agreement with stakeholders to restructure its balance sheet and eliminating approximately $1.8 billion of debt. Other companies to file bankruptcy this year include Linn Energy, Goodrich Petroleum and Sabine Oil & Gas.

Read more at PennVirginia.com

 

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Oilfield Helping Hands Serving Eagle Ford http://eaglefordshale.com/news/oilfield-helping-hands-serve-eagle-ford/ http://eaglefordshale.com/news/oilfield-helping-hands-serve-eagle-ford/#respond Wed, 18 May 2016 18:33:44 +0000 http://eaglefordshale.com/?p=9813 Help for Eagle Ford Families

Help for Eagle Ford Families

A national non-profit that helps oilfield families in critical need of financial assistance has opened a new chapter that will serve families in the Eagle Ford.

Related: Texas Economic Index Declines

Oilfield Helping Hands was established in 2003 and has chapters serving the Rocky Mountain region, Oklahoma, Louisiana, Houston, the Permian and now, South Texas. The group has raised approximately $3.4 million in to assist individuals and families in the oilfield community who are in financial crisis,

“As the president of the new South Texas Chapter it is with pride that my team and I get to join this amazing organization,” said President Stephanie Blankenship. “During this economic downturn we feel privileged at the prospect of being able to give back to a community that supports many of our lives and families.”

The South Texas chapter of OHH serves the following Eagle Ford counties: Karnes, DeWitt, Zavala, La Salle, Atascosa, McMullen, Dimmit, Bee, Frio, Goliad, Webb, Wilson, Lavaca, Gonzales, Maverick, Live Oak and Duval

The serviecs the OHH provide are crucial during the downtuen, where around 72,000 Texas workers have lost jobs in 2015. It is estimated that another 40,000 could lose jobs this year.

The chapter is based in San Antonio and is just starting to organize its 2016 meetings and fundraising events. For information about joining and/or supporting the OHH South Texas Chapter, contact Blankenship at SouthTexasOHH@Outlook.com

Learn more at oilfieldhelpinghands.org

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Carrizo to Increase Eagle Ford Activity http://eaglefordshale.com/news/carrizo-to-increase-eagle-ford-activity/ http://eaglefordshale.com/news/carrizo-to-increase-eagle-ford-activity/#respond Tue, 17 May 2016 17:55:23 +0000 http://eaglefordshale.com/?p=9807 Carrizo Earnings Report

Carrizo Oil & Gas: First Quarter Earnings

Carrizo credited the company’s Eagle Ford Shale assets for their strong first quarter performance and announces plans to increase activity in the region.

Related: Carrizo Focuses on Eagle Ford

In a press release last week, Carrizo Oil & Gas executives reported 2016 first quarter results that included an adjusted net income of $9.2 million. The company also reported record production of 42,025 Boe/d, 21% above the first quarter of 2015.

Sylvester P. Johnson, CEO, commented “We remain on track to achieve (our) goals. Our 2016 drilling and completion capital expenditure guidance of $270 million to $290 million is unchanged, but due to further efficiencies and cost savings, we’ve been able to increase our planned activity levels in the Eagle Ford and Delaware Basin during the year.”

Eagle Ford Operations

Carrizo spent approximately 85% of its budget in the Eagle Ford and acquired 4,000 net acres in the region. For the remainder of 2016, the company plans to increase crude oil production growth target to 9%.

“Our focus on cost reductions and efficiency gains continued to bear fruit during the quarter, as we were able to lower our expected well costs in the Eagle Ford to $4.1 million from $4.6 million per well,” said Johnson.

Other first quarter Eagle Ford highlights:

  • Expects to drill approximately 57 gross (53 net) operated wells and complete 55 gross (52 net) operated wells in the play during 2016
  • Drilled 18 gross (17.0 net) operated wells
  • Completed 14 gross (12.5 net) wells
  • Crude oil production from the play rose to approximately 22,800 Bbls/d for the quarter, up 2% versus the prior quarter
  • 33 gross (31.8 net) operated Eagle Ford wells waiting on completion
  • Operating two rigs
  • Reduction of well costs for a 6,100 ft. lateral well are currently expected to average approximately $4.1 million, down from $4.6 million previously.

Read more at Carrizo.com

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