Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Fri, 30 Sep 2016 15:23:53 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Noble energy Plans for Job Cuts http://eaglefordshale.com/news/noble-energy-plans-for-job-cuts/ http://eaglefordshale.com/news/noble-energy-plans-for-job-cuts/#respond Thu, 29 Sep 2016 14:39:00 +0000 http://eaglefordshale.com/?p=10316 Noble Energy Cuts More Jobs

Noble Energy Cuts More Jobs

Noble Energy joins many other Eagle Ford producers who are cutting jobs in order to streamline operations.

Related: 100 New Jobs for Texas Oil & Gas

Noble executives commented to the Houston Chronicle that the company will initiate a fourth round of layoffs by the end of the year. The cuts will be in the exploration sector in order for the company to refocus efforts on production.

Noble spokeswoman Reba Reid commented, “We are working through the process and expect workforce reductions to be limited.”

Since the bottom began to fall out of the oil and gas industry 19 months ago, more than 102,000 jobs have been cut from every sector.  The Texas Workforce Commission has recorded approximately 5585 Texas layoffs in the oil and gas industry since January. The job loss rate slowed in June and in July, 100 jobs were added. Karr Ingham for the Texas Alliance of Energy Producers says that that the job loss rate in the industry slowed in June. Karr estimated about 900 jobs cut by oil and gas companies, compared to the thousands lost in January and February.

Noble entered the Eagle Ford in July 2015 with the purchase of Rosetta Resources for $2.1 billion, which had 50,000 acres in the South Texas’s Eagle Ford basin and 56,000 acres in the West Texas’s Permian basin.

 

 

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Newfield Exits the Eagle Ford http://eaglefordshale.com/news/newfield-exits-the-eagle-ford/ http://eaglefordshale.com/news/newfield-exits-the-eagle-ford/#respond Wed, 28 Sep 2016 13:30:14 +0000 http://eaglefordshale.com/?p=10314 Newfield Sells Eagle Ford Assets

Newfield Sells Eagle Ford Assets

Newfield exits the Lone Start State as they sell off their remaining assets in the Eagle Ford.

Related: Newfield to Sell

Newfield Exploration Company announced yesterday that they closed a $380 million transaction to sell its producing oil and gas properties and undeveloped acreage in Texas, including their Eagle Ford Shale holdings.

The deal also included conventional natural gas assets in south and west Texas. Combined daily production for all assets sold was approximately 12,700 BOEPD, of which approximately 35% was oil.

The Eagle Ford assets were sold to Protégé Energy III LLC., an independent oil and gas exploration and production company based in Tulsa, Oklahoma. The company website states they strive to achieve strong rates of return from investments in U.S. shale and conventional plays – all in a safe, ethical, and environmentally responsible manner.

Newfield announced the sale in August as a way to replenish their cash flow after a second quarter loss of $667 million. Stock for the Woodlands-based company fell 3.87% Tuesday to $39.50.

“Newfield said while today’s transactions with Protege Energy III llc won’t have a material impact on its Q3 operations or financial results, the deal likely will reduce its FY16 production totals and said it will update its outlook for the rest of the year when it reports its Q3 financial results in about four weeks.” source: nasdaq.com 

Newfield made the news earlier this year when they were the target of oil thieves. Three men were taken into custody after admitting to stealing oil from Newfield and Anadarko between January 2011 and August 2014.

Read more at newfield.com

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Fracking in Mexico’s Eagle Ford Could Begin Next Year http://eaglefordshale.com/news/fracking-in-mexicos-eagle-ford-could-begin-next-year/ http://eaglefordshale.com/news/fracking-in-mexicos-eagle-ford-could-begin-next-year/#respond Tue, 27 Sep 2016 18:58:09 +0000 http://eaglefordshale.com/?p=10311 Mexico Eagle Ford Shale Map

EIA Mexico Eagle Ford Shale Map | Click to Enlarge

Mexico looks to begin fracking program sometime next year after attracting over $22 billion in U.S. energy investments from 59 different companies.

Related:  Eagle Ford Shale and Mexico: An Important Partnership

At a gather of energy executives this week at Rice University, Mexico’s Energy Secretary Pedro Joaquín Coldwell told the group that the government will likely be ready to begin fracking for oil and gas early in 2017.

Mexico has a collection of rich shale fields just across the border from the Eagle Ford Shale Play in Texas, with billions of gallons of shale oil waiting to be fracked. For the first time in generations, the Mexican government is opening up its oil and gas fields to foreign investors after passing historic energy reforms in 2014.

The reforms came just before crude prices tanked, sending Mexico’s state-owned petroleum company spiraling downward.

“Pemex finances are really suffering,” Coldwell said. “They’ve taken a huge blow.” Fuelfix

Since the reforms, Mexico has secured $22.4 billion in energy investments including $10 billion for 10,000 kilometers of pipelines, $7 billion in exploration and production and $2.5 billion for new seismic maps to track oil and gas reserves.

As the industry stabilizes, there will be a great opportunity for collaboration between businesses that operate in the Eagle Ford Shale and Mexico.

 

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BHP Accused of Not Paying Minimum Wage http://eaglefordshale.com/news/bhp-accused-of-not-paying-minimum-wage/ http://eaglefordshale.com/news/bhp-accused-of-not-paying-minimum-wage/#respond Mon, 26 Sep 2016 19:37:24 +0000 http://eaglefordshale.com/?p=10304 Minimum Wage Lawsuit Against Eagle Ford Operators

Minimum Wage Lawsuit Against Eagle Ford Operators

Australian-based BHP has been hit with a lawsuit from workers claiming underpayment of the minimum wage and overtime, according to Australian news sources.

Related: BHP in the Eagle Ford

Linda Cox, a former gate guard at BHP’s Dilworth Ranch in McMullen County, filed a class action lawsuit against Chapa Gate Guard Service, BHP Billion and BHP Billiton Petroleum. Cox alleges that the three companies violated the Fair Labor Standards Act (FLSA) of 1938 by paying her less than the minimum wage in addition to not paying overtime penalties and failing to record all of the time she worked.

Cox worked as a guard from October 2012 to July 2014. In addition to opening and closing gates and completing gate access logs, she and other guards were ‘on call’ 24 hours a day, seven days a week. They were even required to live on the premises.

The Fair Labor Standards Act of 1938 has set the legal minimum wage for workers in the United States at $7.25per hour.

The Australian Financial Review also says that workers filed a similar action against Chapa and Chesapeake Energy, claiming companies withheld overtime pay and ignored minimum wags laws.

BHP entered the Eagle Ford Shale Ply in 2011 when the company acquired Petrohawk for over $12 billion.

 

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Eagle Ford Shale Rig Count Stalls 4 Weeks in a Row http://eaglefordshale.com/news/eagle-ford-shale-rig-count-stalls-4-weeks-in-a-row/ http://eaglefordshale.com/news/eagle-ford-shale-rig-count-stalls-4-weeks-in-a-row/#respond Fri, 23 Sep 2016 23:32:38 +0000 http://eaglefordshale.com/?p=10299 Eagle Ford Rigs

Eagle Ford Operators Put Rigs Back Online

The Eagle Ford Shale rig count was unchanged this week, making it the fourth week in a row ending with 44 rigs running across our coverage area.

In recent Eagle Ford news, industry leaders gathered in San Antonio last week for the Hart Energy DUG Eagle Ford conference and exhibition, where conversation and presentations centered around the status of the Eagle Ford Shale outside of the boom.

Read more: Eagle Ford Shale Play Still Holds Great Value

A total of 510 oil and gas rigs were running across the United States this week, a decrease of 1 from last week of two. 92 rigs targeted natural gas (three more than the previous week) and 418 were targeting oil in the U.S. (two more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 246 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

Six rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $2.96/mmbtu.

The Eagle Ford rigs targeting oil were at 40 with WTI oil prices gaining $1.45 to $44.48 . 

A total of 40 rigs are drilling horizontal wells, zero is drilling directional wells and four are vertical.

Karnes County slipped from the number one spot this week dropping to six rigs. LaSalle leads production with seven rigs in operation. 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
LA SALLE 7 7 AUSTIN 0 0
KARNES 9 6 BEE 0 0
DIMMIT 5 5 BRAZOS 0 0
WEBB 5 5 COLORADO 0 0
DE WITT 3 4 DUVAL 0 0
ATASCOSA 2 3 FAYETTE 0 0
MCMULLEN 2 3 GOLIAD 0 0
ROBERTSON 2 3 GRIMES 0 0
LAVACA 2 2 LEE 0 0
BURLESON 1 1 LEON 0 0
FRIO 1 1 MADISON 0 0
GONZALES 1 1 MILAM 0 0
LIVE OAK 1 1 WILSON 1 0
MAVERICK 1 1 ZAVALA 0 0
WASHINGTON 1 1 BASTROP 0 0

Eagle Ford Shale News

Abraxas Sells Assets to Focus on Shale

Eagle Ford Shale Play Still Holds Great Value

Eagle Ford Drilling & Completion Report

 

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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Abraxas Sells Assets to Focus on Shale http://eaglefordshale.com/news/abraxas-sells-assets-to-focus-on-shale/ http://eaglefordshale.com/news/abraxas-sells-assets-to-focus-on-shale/#respond Wed, 21 Sep 2016 23:32:18 +0000 http://eaglefordshale.com/?p=10296 Abraxas eagle Ford

Abraxas’ $13 MIllion Deal

Abraxas is shifting assets to focus on the Eagle Ford and other shale plays.

Related: Abraxas to Drill in Atascosa County

Abraxas Petroleum Corporation announced this week that they are selling 14,000 acres in order to focus on major shale plays in Texas and North Dakota.

An SEC filing confirmed the $13 million dollar deal is with Houston-based, Frostwood Energy, LLC. The assets sold produced approximately 145 boepd (127 barrels of oil per day, 112 mcf of natural gas per day) on average during the month of June, 2016

“What we’re doing now is focusing more now on unconventional oil and gas in South Texas, the Bakken (North Dakota), and the Permian Basin,” Chief Financial Officer Geoffrey King said.

Abraxas has also signed a contract to sell the another 12,178 acre surface ranch in Pecos County, Texas that includes ½ of the Company’s minerals on the property for gross proceeds of $6.7 million. The company expects this transaction to close in November, 2016.

Abraxas  announced in July that they had begun the process to drill their first well that targets the Austin Chalk at Jourdanton in Atascosa County. The company spudded Bulls Eye 101H on June 16 and estimates that the well will be producing by September 2016. Executives estimate that the drilling and completion costs for this first well will be around $5.8 million, which Abraxas will shoulder alone after terminating talks for a potential joint venture on this project.

Read more at abraxaspetroleum.com

 

 

 

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Eagle Ford Shale Play Still Holds Great Value http://eaglefordshale.com/news/eagle-ford-shale-play-still-holds-great-value/ http://eaglefordshale.com/news/eagle-ford-shale-play-still-holds-great-value/#respond Mon, 19 Sep 2016 22:32:09 +0000 http://eaglefordshale.com/?p=10290 eagle Ford Shale MapMuch has changed in the oil and gas industry over the past two years, but the Eagle Ford Shale Play still holds great value for investors and operators.

Related: Billions of Barrels Available in the Eagle Ford

Industry leaders gathered in San Antonio last week for the Hart Energy DUG Eagle Ford conference and exhibition, where conversation and presentations centered around the status of the Eagle Ford Shale outside of the boom.

Activity in the Eagle Ford has slowed to its lowest point since 2010 with the Texas Railroad Commission (RRC) reporting last week that they issued 4,830 original drilling permits throughout the state of Texas from January-August. 642 of those permits are for operations in the Eagle Ford Shale. If the trend continues, the Eagle Ford will have fewer permits issued by the end of the year since before 2010.

Despite the massive shift since the glory days of the play, the Eagle Ford is still a prized space in the industry with many productive years ahead. Researchers from the UT’s Bureau of Economic Geology say that the 400-mile field has seen just a fraction of its ultimate activity and their new study predicts that another 100,000 wells can still be drilled.

Mark Sooby, managing director at Bank of America Merrill Lynch commented that “The strategic value of the Eagle Ford stands the test of time, so even in the down cycle the values are still very strong.” 

Richard Mason from Hart Energy summarized the key takeaways from the conference, with substantial technical progress topping the list. Eagle Ford operators are reducing costs and cycle time and improving recoveries. Operators are drilling longer laterals more quickly or doing the work of six rigs previously, only at lower costs. He also highlighted the huge potential available in Mexico and encouraged everyone to think of North America as an ‘integrated energy province’.

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Eagle Ford Rig Count Unchanged http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-unchanged/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-unchanged/#respond Fri, 16 Sep 2016 20:56:28 +0000 http://eaglefordshale.com/?p=10285 Eagle Ford Rigs

Eagle Ford Operators Put Rigs Back Online

The Eagle Ford Shale rig count remained flat this week, making it the third week in a row ending with 44 rigs running across our coverage area.

In recent Eagle Ford news, UT’s Bureau of Economic Geology released new and unpublished research this week that shows Eagle Ford companies could potentially recover 10 billion barrels of oil at today’s prices.

Read more: Billions of Barrels Still Available in the Eagle Ford

A total of 505 oil and gas rigs were running across the United States this week, a decrease of 1 from last week of two.  89 rigs targeted natural gas (three less than the previous week) and 416 were targeting oil in the U.S. (two more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 244 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

5 rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $2.95/mmbtu.

The Eagle Ford rigs targeting oil were at 39 with WTI oil prices dipping $2.85 to $43.03 . 

A total of 38 rigs are drilling horizontal wells, one is drilling directional wells and five are vertical.

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

Eagle Ford Shale News

Eagle Ford Drilling & Completion Report

100 New Jobs for Texas Oil & Gas

Eagle Ford Operator Emerges from Bankruptcy

Billions of Barrels Still Available in the 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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Eagle Ford Operator Emerges from Bankruptcy http://eaglefordshale.com/news/eagle-ford-operator-emerges-from-bankruptcy/ http://eaglefordshale.com/news/eagle-ford-operator-emerges-from-bankruptcy/#respond Wed, 14 Sep 2016 22:47:17 +0000 http://eaglefordshale.com/?p=10279 Penn Virginia Emerges from Bakruptcy

Penn Virginia Emerges from Bakruptcy

Penn Virginia Corporation, who focuses on the Eagle Ford Shale Play, has emerged from bankruptcy

Related: Eagle Ford Companies Struggle as Bankruptcies Soar

Penn Virginia Corporation announced this week that it has satisfied the conditions of the bankruptcy court and reduced total long-term debt by approximately $1.1 billion.

Newly appointed chairman, Harry Quarls commented: “Today begins a new chapter in the history of Penn Virginia. We have emerged from bankruptcy with a significantly de-leveraged balance sheet and committed financial support from our senior lenders and other stakeholders. With improved liquidity and a stronger capital structure, we are well-positioned to realize the full value of our excellent asset portfolio.”

The company plans to maintain their core position in the Eagle Ford and for the remainder of 2016, expects to utilize one operated drilling rig in the region. As of November of last year, Penn Virginia reported its position as approximately 100,000 net acres in the oil window of the Eagle Ford shale play in Gonzales and Lavaca Counties, Texas. According to the company website, Eagle Ford production was 14,188 BOEPD during the three months ended March 31, 2016, with oil comprising 10,504 BOPD, or 74 percent, and NGLs and natural gas comprising approximately 14 percent and 12 percent.

Texas has been hit specifically hard with industry bankruptcies. According to the law firm of Haynes and Boone, more that half (25) of the 2016 filing being initiated in Texas courts. The combined total Texas bankruptcy filings for 2015-16 is 43, representing approximately $29 billion in cumulative debt.

Read more at pennvirginia.com

 

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Billions of Barrels Still Available in the Eagle Ford http://eaglefordshale.com/news/billions-of-barrels-still-available-in-the-eagle-ford/ http://eaglefordshale.com/news/billions-of-barrels-still-available-in-the-eagle-ford/#respond Tue, 13 Sep 2016 21:41:15 +0000 http://eaglefordshale.com/?p=10277 Eagle ford-Billions of barrels of oil

Eagle Ford Holds Billions of Barrels of Oil

New research from the University of Texas reveals there are still billions of barrels waiting to be drilled in the Eagle Ford.

Related: Eagle Ford Drilling & Completion Report

On the heels of the Eagle Ford’s lowest drilling activity since 2012, researchers from the UT’s Bureau of Economic Geology released new and unpublished research this week that shows companies could potentially recover 10 billion barrels of oil at today’s prices.

 

The university has conducted a broad study of shale gas production and reserves in the Eagle Ford Shale Play and the Bakken formation in North Dakota that analyzes energy prices, the cost of drilling and completing a well and the impact of regulations. The full results will be published in various peer-reviewed papers over the next six months.

 

Scientists were on hand at the recent DUG Conference in San Antonio to share some of their findings related to the potential of the Eagle Ford.

 

“Scott Tinker, bureau director, and economist Svetlana Ikonnikova, shared that the 400-mile South Texas field has seen just a fraction of its ultimate activity. UT expects 100,000 wells in the Eagle Ford, far more than the 17,000 wells have been drilled so far, according to the Railroad Commission of Texas.”
Other study highlights for the Eagle Ford:
  • The play holds an estimated 230 billion barrels of oil (only 10 billion can be recovered now)
  • The play has an estimated 462 trillion cubic feet of natural gas, with 34 trillion cubic feet recoverable.
  • At least 80,000 more wells will be drilled

Currently, activity in the Eagle Ford has slowed. The Texas Railroad Commission (RRC) reported this week that from January-August, they issued 4,830 original drilling permits throughout the state of Texas. 642 of those permits are for operations in the Eagle Ford Shale. Eight months into the year and the numbers don’t look good. If the trend continues, the Eagle Ford will have fewer permits issued by the end of the year since before 2010.

Read more at beg.utexas.edu

 

 

 

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