Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Wed, 20 Aug 2014 14:34:33 +0000 en-US hourly 1 http://wordpress.org/?v=3.8.3 Murphy Hits Record Eagle Ford Production in Q2 2014 http://eaglefordshale.com/news/murphy-hits-record-eagle-ford-production-q2-2014/ http://eaglefordshale.com/news/murphy-hits-record-eagle-ford-production-q2-2014/#respond Wed, 20 Aug 2014 14:34:33 +0000 http://eaglefordshale.com/?p=6371 Murphy Eagle Ford Acreage

Murphy Eagle Ford Acreage | Click to Enlarge

Murphy Oil Corp.’s second-quarter Eagle Ford production hit a new company record of 52,184 boe/d, with a 90% liquids cut. That’s up about 6% from the previous quarter and 33% year-over-year. Murphy expects to surpass 60,000 boe/d in 2015. At current rates, the company should realize its anticipated production target in the first or second quarter of next year.

Portfolio-wide, the company averaged total production of 210,191 boe/d, which is about 3% less than anticipated for the quarter. The shortfall was attributed to Murphy’s operational delays relating to its offshore business in Malaysia.

Read more: Murphy’s Eagle Ford Production Grows to 39,000 boe/d in 2013

In the Eagle Ford Shale, 53 new wells were brought on line during the quarter. That’s up from 44 wells in the first quarter of 2014.

The company is currently operating eight drilling rigs and four completions across the play. Murphy expects to bring on a total of 200 wells (including non-operated locations) in 2014.

Murphy’s Upper Eagle Ford Tests Could Boost Drilling Inventory

According to company officials, further testing for upside potential in the Upper Eagle Ford Shale zone is expected, which could yield 600 additional well locations, beyond the 1,500 locations remaining to be drilled in the Lower Eagle Ford Shale. Murphy officials also indicate downspacing efforts across the Eagle Ford continue to deliver positive results. At the company’s current pace, officials expect 10 + years of drilling.

Furthermore, Murphy is in the process of conducting negotiations for two separate pipeline arrangements in its Karnes and Tilden areas of the play to transport up to 28,000 b/d oil net to market. The company hopes to reduce trucking operations and improve overall reliability.

Read more at murphyoilcorp.com

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Eagle Ford’s BHP Billiton Seeks to Export Condensate http://eaglefordshale.com/news/bhp-condensate-export/ http://eaglefordshale.com/news/bhp-condensate-export/#respond Tue, 19 Aug 2014 14:00:08 +0000 http://eaglefordshale.com/?p=6473 Petrohawk Eagle Ford Shale Map

Hawkville Seen Here Extends into Webb County | Click to Enlarge

Houston-based BHP Billiton may soon get the green light to export condensate from the Eagle Ford Shale.

According to the Houston Chronicle, BHP President Rod Skaufel confirmed the company has applied for an export permit with the U.S. Commerce Department (US DoC).

Read more: Oil Exports to Foreign Buyers Begins

In June 2014, Pioneer Natural Resources Co. and Enterprise Product Partners LP were granted permission by the US DoC in a private ruling to export minimally processed Eagle Ford condensate. In late July 2014, the first exports began.

The US DoC’s ruling in June 2014 was the first sign the United State’s oil export ban, which has been in place for nearly 40-years, could be subject to change. Following the Arab oil embargo of the early 70s, in 1975, President Gerald Ford signed into law the Energy Policy and Conservation Act, which in effect bans most U.S. oil exports (refined products are not included in the ban). The minimally processed condensate currently being exported by Pioneer and Enterprise is considered a refined product by the US DoC.

With the U.S. slated to become the top oil producing country in the world by 2015, according to the International Energy Agency (IEA), the necessity of the ban is puzzling to some, but still viable to others. In recent months, there’s been a push from industry leaders for the federal government to relax and even lift the ban, including Continental Resources CEO Harold Hamm. Continental Resources is the second largest producer in the Bakken Shale in North Dakota, which also produces light oil and condensate.

BHP Billiton Eagle Ford Position in Condensate Window

Due to its position in the play, among other factors, the company is in an attractive position for exporting condensate should it get the go-ahead from the US DoC.

“Our position in the Eagle Ford is right in the heart of the condensate window, and the economics of the wells average a 70% rate of return,” said Skaufel, in an interview for Unconventional Oil & Gas Report.

BHP plans to spend $3-billion of its $3.9 billion budget for onshore U.S. in the Eagle Ford in 2014. The company entered the Eagle Ford Shale in 2011, with the acquisition of Petrohawk for ~$12-billion.

Read more: BHP – Petrohawk Deal Brings Australia to the Eagle Ford 

Read more at chron.com and ogj.com

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Eagle Ford Shale Rig Count Decreases by Five to 261 http://eaglefordshale.com/drilling-rig-count/eagle-ford-shale-rig-decreases-by-five-to-261/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-shale-rig-decreases-by-five-to-261/#respond Mon, 18 Aug 2014 14:00:49 +0000 http://eaglefordshale.com/?p=6466 EIA Eagle Ford Production

EIA Eagle Ford Production | Click to Enlarge

The Eagle Ford Shale rig count decreased by five to 261 rigs running across our coverage area by the end of last week.

In recent news, The U.S. Energy Information Administration (EIA) predicts the Eagle Ford Shale will produce 1.51-million b/d crude oil in September 2014. That’s an increase of ~31,000b/d over August’s expected production (1.48-million b/d), according to the EIA’s monthly Drilling Productivity Report released this week.

Read moreEIA: Eagle Ford Oil Production Will Hit 1.5-Million b/d – Sept. 2014

The U.S. rig count increased by five to 1,913 rigs running by the end of last week. A total of 321 rigs were targeting natural gas (five more than the previous week) and 1,589 were targeting oil in the U.S. (one more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.).  901 or ~48% of rigs active in the U.S. were running in Texas.

Baker Hughes rig count is quoted here. Baker Hughes also releases its own Eagle Ford Rig Count that covers the 14 core counties (199 rigs). 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 near the bottom of this article.

Eagle Ford Oil & Gas Rigs

The natural gas rig count increased by one to ten rigs running by the end of last week. Average rig counts for natural gas production in 2012 were around 80 and then dropped to around 40 in 2013. Natural gas prices decreased slightly from the previous week to $3.77/mmbtu on Friday afternoon.

The oil rig count decreased by six to 251 rigs running by the end of last week. WTI oil prices stayed relatively flat from the previous week, trading at $97.09/bbl on Friday afternoon. Eagle Ford light crude traded at $92.00/bbl on August 14th.

A total of 247 rigs are drilling horizontal wells, four rigs are drilling directional wells, and ten rigs are drilling vertical wells. Karnes, La Salle, De Witt, and Webb each have at minimum 25 rigs running. Karnes County has the highest rig count this week at 34. See the full list below in the Eagle Ford Shale Drilling by County below

South Texas Oil & Gas News:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts - Daily or Weekly Email Alerts

Eagle Ford Shale Drilling by Count


County Previous Week Current Week County Previous Week Current Week
KARNES 32 34 ZAVALA 4 4
LA SALLE 31 31 LEE 3 3
WEBB 27 27 LEON 3 3
DE WITT 29 26 COLORADO 2 2
DIMMIT 20 20 GRIMES 2 2
MCMULLEN 19 19 ROBERTSON 2 2
ATASCOSA 13 13 WASHINGTON 1 1
BRAZOS 13 13 AUSTIN 0 0
GONZALES 13 13 BEE 0 0
MADISON 15 13 DUVAL 0 0
LAVACA 13 12 GOLIAD 0 0
BURLESON 7 7 MAVERICK 0 0
LIVE OAK 7 7 MILAM 0 0
FRIO 5 5 WILSON 1 0
FAYETTE 4 4 BASTROP 0 0

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.

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Texas American Resources, LLC Exits Eagle Ford http://eaglefordshale.com/news/texas-american-resources-llc-exits-eagle-ford/ http://eaglefordshale.com/news/texas-american-resources-llc-exits-eagle-ford/#respond Fri, 15 Aug 2014 14:24:10 +0000 http://eaglefordshale.com/?p=6461 Texas American Resources Eagle Ford Area Map

Texas American Resources Eagle Ford Area Map | Click to Enlarge

Austin, Texas-based Texas American Resources, LLC exits the Eagle Ford Shale this month, with the sale of its South Texas assets in Dimmit, Frio, La Salle, and Zavala Counties. The company will now shift its operational focus to its remaining assets in the Texas Panhandle.

Texas American Resources announced the closing of the $135-million deal this week to an undisclosed buyer. Included in the sale are the company’s existing production, proved reserves, and Eagle Ford and Austin Chalk oil development opportunities across 55,000 net Eagle Ford acres.

Texas American Resources CEO David Honeycutt, said, “we are pleased with our outcome in South Texas. The sale is accretive to both the buyer and seller. There are many remaining opportunities in our legacy South Texas portfolio and our buyer sees and embraces the upside the assets offer.”

Proceeds from the sale will be used to repay debt, and accelerate development of the Texas Panhandle assets.

Read more at texasarc.com

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EIA: Eagle Ford Oil Production Will Hit 1.5-Million b/d – Sept. 2014 http://eaglefordshale.com/news/eia-eagle-ford-oil-production-will-hit-1-5-million-bd-sept-2014/ http://eaglefordshale.com/news/eia-eagle-ford-oil-production-will-hit-1-5-million-bd-sept-2014/#respond Thu, 14 Aug 2014 15:18:15 +0000 http://eaglefordshale.com/?p=6452 EIA Eagle Ford Production

EIA Eagle Ford Production | Click to Enlarge

The U.S. Energy Information Administration (EIA) predicts the Eagle Ford Shale will produce 1.51-million b/d crude oil in September 2014. That’s an increase of ~31,000 b/d over August’s expected production (1.48-million b/d), according to the EIA’s monthly Drilling Productivity Report released this week.

In May, 2013, the Eagle Ford hit the 1-million b/d mark for total liquids production, and in August 2013, exceeded the 1-million b/d crude oil mark. Since 2011, when development of the play began ramping up, production has more than quadrupled.

Most research organizations predict Eagle Ford area production will reach between 1.6 and 2-million b/d sometime between 2017 and 2020. Among a number of factors, recent results from operators in the Eagle Ford’s overlaying Austin Chalk have yielded positive results, and may help push the time-frame up quicker for hitting the 2-million b/d mark.

Read more: Is the Eagle Ford on its Way to 2 Million Barrels Per Day of Oil Production

In April 2014, Texas’ state-wide production surpassed the 3-million b/d crude oil mark, thanks to the Eagle Ford  Shale and increased production in West Texas’ Permian Basin. North Dakota, which encompasses the prolific Bakken Shale play, and Texas combined produced nearly half of all U.S. oil production during the same month. By 2015, the U.S. is predicted to become the top oil producer in the world, according to the International Energy Agency (IEA).

Read more: Texas Oil Production Reaches Levels Not Seen Since the 70′s

The EIA predicts U.S. shale plays are expected to produce 4.87-million b/d in September 2014. That’s up from 4.77-million b/d in August 2014.

See the full report at eia.gov

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Eagle Ford’s Sanchez Energy Reports Record Revenue in Q2 2014 http://eaglefordshale.com/news/eagle-fords-sanchez-energy-reports-record-revenue-q2-2014/ http://eaglefordshale.com/news/eagle-fords-sanchez-energy-reports-record-revenue-q2-2014/#respond Wed, 13 Aug 2014 14:38:44 +0000 http://eaglefordshale.com/?p=6445 Sanchez Energy Eagle Ford Acreage Map

Sanchez Energy Eagle Ford Acreage Map | Click to Enlarge

Eagle Ford-focused Sanchez Energy reported record revenue of $151.7 million in the second quarter of 2014, with portfolio-wide production increasing 164% year-over-year to 20,437 boe/d.

At the end of the quarter, the company closed its massive Eagle Ford acreage deal with Royal Dutch Shell for 106,000 net Eagle Ford acres in Catarina. The acquisition almost doubled the company’s acreage in the play. Total purchase price for the acquisition was approximately $639 million, less approximately $85.5 million in normal and customary closing adjustments.

Read more: Sanchez Nearly Doubles Eagle Ford Acreage in $639 Million Deal with Shell

Sanchez CEO Tony Sanchez, III, said,”as of August 1, 2014, Sanchez Energy has officially taken over all operations at Catarina after a brief transition period with Shell. The transition of operations has gone smoothly and the ramp up of Sanchez Energy operations is ahead of schedule. We have fully staffed our operations at Catarina and now have drilling, completion, and artificial lift installation in progress. Additionally, now that we have achieved critical scale from the Catarina assets, we are utilizing a dedicated frac spread as well as direct sourcing of chemicals and proppant. We expect these factors will reduce completions costs by an additional 30%, allowing flexibility to increase fracture stage size or improve returns from a lower development cost.”

With the Catarina acquisition, Sanchez increased its proved reserves 170% to approximately 117 MMBOE as of June 30, 2014. Crude oil constituted 49% and NGLs constituted 24% of the company’s proved reserves. 56% of the company’s proved reserves were classified as proved undeveloped, compared to 70% at same time last year.

Sanchez Eagle Ford Q2 Operations Update

Sanchez Energy currently has 6 gross rigs running across its Eagle Ford acreage, with 419 gross producing wells and 38 gross wells in various stages of completion.

By area, the company’s Cotulla, Marquis, and Palmetto Eagle Ford operating areas comprised approximately 42% of the crude oil cut from total second quarter 2014 production volumes. Company officials expect the percentage of oil expected in the company’s third quarter production volumes should decrease as the impact of the production volumes from Catarina are recorded.

The company’s third quarter production guidance range portfolio-wide of 37,000 to 41,000 boe/d has been revised to 36,000 to 40,000 BOE/D while its fourth quarter production guidance range of 45,000 to 49,000 boe/d has increased to 48,000 to 50,000 boe/d. Production guidance for 2015 remains the same at a range of 53,000 boe/d to 58,000 boe/d.

Read more at sanchezenergycorp.com

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EVEP & EnerVest Agree to Sell Certain Eagle Ford Assets http://eaglefordshale.com/news/evep-enervest-agree-to-sell-certain-eagle-ford-assets/ http://eaglefordshale.com/news/evep-enervest-agree-to-sell-certain-eagle-ford-assets/#respond Tue, 12 Aug 2014 14:44:54 +0000 http://eaglefordshale.com/?p=6439 EVEP/EnerVest Eagle Ford Acreage Map

EVEP/EnerVest Eagle Ford Acreage Map|Click to Enlarge

Houston-based EV Energy Partners (EVEP) and Enervest, Ltd. are selling certain deep rights in the Eagle Ford formation in Burleson, Brazos and Grimes Counties for $218-million. EVEP, a master limited partnership of which EnerVest is the controlling member of the general partner, will net $30-million from the deal. The buyer was not disclosed.

EVEP officials confirmed all non-Eagle Ford formation rights, including the Austin Chalk formation and corresponding production, will be retained for both EVEP and EnerVest. The transaction is expected to close by October 15th.

EVEP CEO Mark Houser, said, “with the development of the East Texas Eagle Ford under our Austin Chalk acreage and the rapid build-up of drilling rigs and capital requirements, we decided to capitalize on the opportunity and have entered into an agreement to sell our Eagle Ford formation rights in three of the counties where there has been significant activity to date. We plan to redeploy the proceeds in acquiring longer-life, high PDP content reserves.”

EVEP’s remaining position in the East Texas Eagle Ford covers portions of Lee, Fayette and Washington Counties. Houser indicated in EVEP’s second-quarter report that the company will retain this acreage until more drilling and production has taken place to further exploit its potential.

Read more at evenergypartners.com

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Eagle Ford Shale Rig Count Stays Flat at 266 http://eaglefordshale.com/drilling-rig-count/eagle-ford-shale-rig-count-flat-266/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-shale-rig-count-flat-266/#respond Mon, 11 Aug 2014 14:43:21 +0000 http://eaglefordshale.com/?p=6433 EOG Resources Eagle Ford Reserve Potential

EOG Resources Eagle Ford Reserve Potential

The Eagle Ford Shale rig count stayed flat at 266 rigs running across our coverage area by the end of last week.

In recent news,  EOG Resources revealed a 45% increase in its Eagle Ford estimated potential reserves from 2.2 net BnBoe to 3.2 net BnBoe. This is the company’s third reserve increase in four years. EOG officials expect continued production growth in the Eagle Ford, with a current drilling inventory of 12 years.

Read moreEOG Resources Increases Eagle Ford Reserve Potential 45%

The U.S. rig count increased by 19 to 1,908 rigs running by the end of last week. A total of 316 rigs were targeting natural gas (three more than the previous week) and 1,588 were targeting oil in the U.S. (15 more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.).  908 or ~48% of rigs active in the U.S. were running in Texas.

Baker Hughes rig count is quoted here. Baker Hughes also releases its own Eagle Ford Rig Count that covers the 14 core counties (201 rigs). 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 near the bottom of this article.

Eagle Ford Oil & Gas Rigs

The natural gas rig count increased by one to nine rigs running by the end of last week. Average rig counts for natural gas production in 2012 were around 80 and then dropped to around 40 in 2013. Natural gas prices increased slightly from the previous week to $3.97/mmbtu on Friday afternoon.

The oil rig count decreased by one to 257 rigs running by the end of last week. WTI oil prices stayed relatively flat from the previous week, trading at $97.57/bbl on Friday afternoon. Eagle Ford light crude traded at $94.00/bbl on July 24th.

A total of 247 rigs are drilling horizontal wells, 6 rigs are drilling directional wells, and 13 rigs are drilling vertical wells. Karnes, La Salle, De Witt, and Webb each have at minimum 25 rigs running. Karnes County has the highest rig count this week at 32. See the full list below in the Eagle Ford Shale Drilling by County below

South Texas Oil & Gas News:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts - Daily or Weekly Email Alerts

Eagle Ford Shale Drilling by Count


County Previous Week Current Week County Previous Week Current Week
KARNES 33 32 ZAVALA 5 4
LA SALLE 31 31 LEE 3 3
DE WITT 30 29 LEON 3 3
WEBB 24 27 COLORADO 2 2
DIMMIT 20 20 GRIMES 2 2
MCMULLEN 22 19 ROBERTSON 1 2
MADISON 15 15 WASHINGTON 1 1
ATASCOSA 13 13 WILSON 1 1
BRAZOS 13 13 AUSTIN 0 0
GONZALES 14 13 BEE 0 0
LAVACA 11 13 DUVAL 0 0
BURLESON 7 7 GOLIAD 0 0
LIVE OAK 5 7 MAVERICK 0 0
FRIO 6 5 MILAM 0 0
FAYETTE 4 4 BASTROP 0 0

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.

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Matador’s Eagle Ford Production Breaks Record in Q2 http://eaglefordshale.com/news/matadors-eagle-ford-production-breaks-record-in-q2/ http://eaglefordshale.com/news/matadors-eagle-ford-production-breaks-record-in-q2/#respond Fri, 08 Aug 2014 15:08:09 +0000 http://eaglefordshale.com/?p=6400 Matador Eagle Ford Acreage

Matador Eagle Ford Acreage | Click to Enlarge

Dallas, Texas-based Matador Resources hit record production levels portfolio-wide in the second-quarter of 2014, thanks mostly to its Eagle Ford Shale production. The company recorded a 30% quarter-on-quarter production increase to 15,424 boe/d, and a 46% increase year-over-year.

During the quarter, approximately 54% of the company’s natural gas production was liquids-rich natural gas, primarily from the Eagle Ford Shale. That’s  a jump compared to the year ago quarter when Matador’s liquids-rich natural gas cut for its natural gas production was around 33%.

Matador’s Permian Assets Help Boost Company Production

Matador’s most significant oil producing assets are in the Eagle Ford Shale, but the company is also active in the Permian Basin, in West Texas and Southeastern New Mexico. During the quarter, the oil-rich Permian helped Matador achieve record oil production, representing an increase of 21% quarter-on-quarter to ~8,900 b/d.

Read more: Matador Resources Oil Production Up 76% Company-Wide Due to Eagle Ford

Matador’s CEO Joseph Foran, said, “these record production results are directly attributable not only to the continued execution of our Eagle Ford development program but also to the positive, better-than-expected results from our initial wells in thePermian Basin. Notably, these results were achieved despite having as much as 10 to 15% of our total production capacity shut in or restricted at various times during the second quarter while offsetting wells were drilled and completed and pipeline connections were being made.”

Matador Eagle Ford Position Growing Larger in 2014

Since the beginning of the year, Matador has acquired approximately 3,100 gross (2,900 net) acres in South Texas prospective for the Eagle Ford Shale in La Salle, Karnes and southern Atascosa Counties. According to company officials, the acreage has the potential to add up to 75 additional gross drilling locations to the company’s South Texas development program.

Matador Eagle Ford Q2 2014 Operations Update

Matador had two drilling rigs operating in South Texas during the second quarter of 2014. During the quarter, the company completed and began producing from nine gross (6.2 net) Eagle Ford wells, including six gross (5.4 net) operated and three gross (0.8 net) non-operated Eagle Ford wells. Matador completed three operated Eagle Ford wells on its Northcut lease and two wells on its Martin Ranch lease in La Salle County and one well on its Lyssy lease in southern Wilson County. The three non-operated wells were completed on its Troutt lease in La Salle County.

As of August 6, 2014, Matador had two drilling rigs operating in the Eagle Ford. One of the rigs is on the company’s Lyssy lease in southernWilson County and one is on its Pawelek lease in Karnes County. 

Read more at matadorresources.com

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Baron Energy Inc. Adds to Eagle Ford Acreage http://eaglefordshale.com/news/baron-energy-inc-adds-eagle-ford-acreage/ http://eaglefordshale.com/news/baron-energy-inc-adds-eagle-ford-acreage/#respond Thu, 07 Aug 2014 14:56:06 +0000 http://eaglefordshale.com/?p=6389 Frio County Eagle Ford Shale Map

Frio County, TX

A subsidiary of San Marcos, Texas-based Baron Energy, Inc. has purchased 8,082 Eagle Ford acres in Frio County, TX, including eight producing leases, for an undisclosed amount. The acquisition was announced by the company in early August of 2014, with an effective date of July 1, 2014.

According to Baron officials, the producing leases have gross production of 204 b/d oil and 180 mcf/d from 14 producers, and a drilling inventory of new wells and recompletions for up to five years. The company is the operator for all of the recently acquired properties.

CEO Ronnie Steinocher, said in a prepared statement, “this acquisition increases our anticipated consolidated revenue tenfold to approximately $425,000 per month and provides the means to further increase revenue over the next 12 months by drilling new horizontal wells.”

The acquisition satisfies a major goal for Baron, according to Steinocher, providing the company with substantial future growth opportunities. Based on geological analogs, company officials believe new horizontal wells targeting the Austin Chalk could result in initial production (IP) rates of 150-500 b/d oil with 50,000 to 300,000 bbl of ultimately recoverable crude oil per well.

Read more at baronenergy.com

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