Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Thu, 25 Aug 2016 19:21:39 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Clayton Williams: No Eagle Ford Drilling at $50 http://eaglefordshale.com/news/clayton-williams-no-eagle-ford-drilling-at-50/ http://eaglefordshale.com/news/clayton-williams-no-eagle-ford-drilling-at-50/#respond Wed, 24 Aug 2016 22:51:17 +0000 http://eaglefordshale.com/?p=10221 Clayton Williams  Q2

Clayton Williams 2016 Q2

Clayton Williams Energy, Inc (CWEI) won’t be drilling in the Eagle Ford Shale Play until crude prices move considerably higher than $50.

Related: Clayton Williams Stops Eagle Ford Drilling | Eagle Ford Shale Play

In a second quarter earnings call, CWEI executives reported a net loss of $80.9 million while production costs dropped to $19.2 million, versus $23.1 million in 2015.

For their Eagle Ford operations, the company announced they wouldn’t  be drilling in the Eagle Ford as long as prices stay around the $50 mark. For the second quarter, average daily production in the Eagle Ford was 1,661 Bbls for oil compared to 3,238 Bbls in Q2/2015 and average daily production for natural gas was 308 Mcf and 566  for 2015

President Mel Riggs commented that “the past 18 or 19 months which, frankly, feels like about 10 years for me and most of us here. The actions we took early on to cut overhead, to cut operating expenses in the field and eventually to also suspend capital spending pretty much to preserve liquidity we feel like paid off over time. During the year, we drilled a couple of other wells in the Eagle Ford, but most of the year we were pretty much idle when it came to capital spending and we were exploring options for the Company.”
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Lonestar Resources: Focused on Eagle Ford Shale http://eaglefordshale.com/news/lonestar-resources-focused-on-eagle-ford-shale/ http://eaglefordshale.com/news/lonestar-resources-focused-on-eagle-ford-shale/#respond Tue, 23 Aug 2016 22:40:03 +0000 http://eaglefordshale.com/?p=10212 Lonestar Resources Q2

Lonestar Resources 2016 Q2

Lonestar’s production climbed in the second quarter with Eagle Ford operations leading the way.

Related: Lonestar’s Eagle Ford Production Up 23% 

In spite of a net loss of $12.8 million for the second quarter of 2016, Lonestar Resources registered a 13% increase in net oil and gas production to 6,573 Boe/d, compared to 5,804 Boe/d in the second quarter of 2015.

Other second quarter highlights include:

  • Placed two new Eagle Ford shale wells on stream during May of the quarter
  • Crude oil production rose 17% sequentially in the second quarter as Lonestar’s 2016 completions have all been in the crude oil window.
  • Net loss of $12.8 million for 2Q16 versus a net loss of $8.4 million in 2Q15
  • Adjusted EBITDAX was $16.0 million compared to $22.0 million for 2Q15
“The company continues to focus its technical and capital resources on the Eagle Ford shale where it generated a 17% increase in net oil and gas production over to 2Q, 2015 results to 5999 boe per day.” – Doug Banister, CFO

In July Lonestar delisted from the Australian Stock Exchange and  commenced trading on the NASDAQ Global Market under the symbol, “LONE”.  This is a major step as the company moves closer to moving its parent company from Australia to the United States as a Delaware corporation.

Read more here

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Matador Resources Open to Leaving Eagle Ford http://eaglefordshale.com/news/matador-resources-open-to-leaving-the-eagle-ford/ http://eaglefordshale.com/news/matador-resources-open-to-leaving-the-eagle-ford/#respond Mon, 22 Aug 2016 17:32:06 +0000 http://eaglefordshale.com/?p=10200 Matador Resources Q2

Matador Resources 2016 Q2

Matador Resources is weighing opportunities to sell or trade its Eagle Ford assets.

Read more about Matador in the Eagle Ford

Executives for Matador Resources reported strong results for the second quarter of 2016, highlighted by ‘milestones and achievements’ including significant production growth and operational efficiencies.

Matador’s Eagle Ford Operations

During an earnings call earlier this month, CEO Joseph Foran said that the company has done virtually no drilling in the region this year and that the area is not as strategic to the company as it has been in the past. He also revealed that the company is open to opportunities to part with some or all of its Eagle Ford assets.

Foran was careful to say that they were not being aggressive in pursuit of a deal, but that if the right opportunity came along they would entertain it. He said that, ideally, they would like to trade property for acreage in the Delaware or Haynesville Basins.

“We are just saying, look, Matador is on a good roll. We are pretty excited about things, and the best time to sell an asset is when you don’t have to. But it is not a fire sale; it is not – as we do with any assets, we do a methodical thing and want to be sure that we have signaled we are open.” – Joseph Foran, Chairman and CEO

Second Quarter Highlights:

  • Record average daily production: 28,000 barrels of oil equivalent (“BOE”) per day (23,800 in Q1)
  • Capital expenditures during the first six months of 2016 of approximately $198 million
  • Net loss of $105.9 million versus a net loss of $107.7 million in Q1
  • Lease operating expenses (“LOE”) of $5.17 per BOE, a decrease of 28% sequentially, as compared to $7.14 per BOE in the first quarter of 2016, and a decrease of 16% year-over-year, as compared to $6.18 per BOE in the second quarter of 2015.

Read more at matadorresources.com

 

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Eagle Ford Rig Count Drops as Crude Nears $50 http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-drops-2/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-drops-2/#respond Fri, 19 Aug 2016 22:47:32 +0000 http://eaglefordshale.com/?p=10197 Eagle Ford Rigs

Eagle Ford Operators Put Rigs Back Online

The Eagle Ford Shale rig count fell by two this week, ending with 42 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Railroad Commissioner Christi Craddick gave more details on the Texas Oilfield Relief Initiative, a new project designed to make the state’s energy regulatory body more efficient and effective.

Read more:Texas Oilfield Relief Initiative Takes Shape

A total of 489 oil and gas rigs were running across the United States this week, and increase from last week of 10. 83 were targeting natural gas (same more than the previous week) and 406 were targeting oil in the U.S. (10 more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 238 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

9 rigs in the region targeted natural gas this week with the commodity trading at $2.57/mmbtu.

The Eagle Ford rigs targeting oil dropped to 33 with WTI oil prices continuing upwards to $48.52a $4.03 increase this week. 

A total of 37 rigs are drilling horizontal wells, one is drilling directional wells and four are vertical.

For the first time, Karnes County shares the number one spot with Dimmit County, with both running eight rigs 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
DIMMIT 7 7 AUSTIN 0 0
KARNES 8 7 BEE 0 0
WEBB 8 7 BRAZOS 0 0
GONZALES 3 4 COLORADO 0 0
LA SALLE 3 4 FAYETTE 0 0
ATASCOSA 2 2 GOLIAD 0 0
DE WITT 1 2 LEE 0 0
LAVACA 3 2 LEON 0 0
BURLESON 1 1 MADISON 0 0
DUVAL 2 1 MAVERICK 0 0
FRIO 1 1 MILAM 0 0
GRIMES 1 1 WASHINGTON 0 0
LIVE OAK 2 1 WILSON 0 0
MCMULLEN 1 1 ZAVALA 0 0
ROBERTSON 1 1 BASTROP 0 0

Eagle Ford Shale News

Karnes County Couple Sues Marathon Oil

Cabot to Reduce Spending in the Eagle Ford

Texas Oilfield Relief Initiative Takes Shape

Sanchez Energy to Increase Upstream Spending

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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Karnes County Couple Sues Marathon Oil http://eaglefordshale.com/news/karnes-county-couple-sues-marathon-oil/ http://eaglefordshale.com/news/karnes-county-couple-sues-marathon-oil/#respond Thu, 18 Aug 2016 23:18:31 +0000 http://eaglefordshale.com/?p=10192 Mineral Owners Sue Marathon OilOne couple from Karnes County exemplify how hard mineral owners have to fight to make sure their royalty payments are correct.

Related: Mineral Owners Race the Clock in Texas

John and Kelly Foster filed suit on Wednesday in order to obtain records from Marathon Oil that details the activity from their 613 acres in production. The family’s attorney said the couple is currently not seeking damages, but that a lawsuit was the only way to obtain information about how their royalty payments were calculated.

Texas has laid a heavy burden on mineral owners to make sure energy companies pay what is owed. In 2012, the Texas Supreme Court issued a decision in Shell v Ross that requires owners to do their own exhaustive audits to find out if payments are correct. If an owner suspects a problem, they have a four year time limit to request an audit. While this seems like it should be plenty of time, it isn’t always clear what operators are doing and sometimes a problem may not be obvious until it is too late.

Oil and gas attorney John McFarland told San Antonio Express News, “Not all companies are willing to share information, and not all leases have an audit provision that allows royalty owners to see the books that show how their royalties were calculated.”

Karnes county is the most prolific space in the Eagle Ford and across Texas, currently running eight rigs in their county . The Texas Railroad Commission records show that wells on the Fosters’ land have produced nearly 600,000 barrels of oil condensate and more than 4.2 billion cubic feet of natural gas over the past five years.

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Sanchez Energy to Increase Upstream Spending http://eaglefordshale.com/news/sanchez-energy-to-increase-upstream-spending/ http://eaglefordshale.com/news/sanchez-energy-to-increase-upstream-spending/#respond Tue, 16 Aug 2016 22:09:01 +0000 http://eaglefordshale.com/?p=10186 Sanchez Energy Q2

Sanchez Energy 2016 Q2

Sanchez Energy Corp. reported excellent production returns for the second quarter of 2016 and announced plans to increase upstream capital spending to between $250 million to $300 million.

Related: Sanchez Midstream Deal Worth $44 Million

During a second quarter earnings call, Sanchez’ CEO Tony Sanchez credited their results to competitive well costs, record production and improvements in the commodity price environment.

Sanchez continues to experience great results from their Eagle Ford operations including drill costs of below $3 million for wells at both Catarina and Cotulla.

Sanchez commented “The commodities or the company’s Eagle Ford development plan remains focused on Catarina, where in conjunction with the uptick and spending plan under our updated capital plan, the company is currently running three rigs and expects to maintain an activity set of two rigs for remainder of the year.

Second quarter highlights include:

  • Plans to increase its 2016 upstream capital spending by up to $50 million, to a range of between $250 million to $300 million
  • Total production of 5.1 million barrels of oil equivalent (“MMBoe”) during the second quarter 2016, up approximately 4% over the second quarter 2015
  • Average production of approximately 55,900 barrels of oil equivalent per day (“Boe/d”), which exceeded the high end of the Company’s guidance of 48,000 to 52,000 Boe/d for the second quarter 2016 by over 7%
  • Average drilling and completion costs between $3-3.3 million per well
  • Revenues of approximately $111 million (up approximately 39% over Q1)
  • $146 million in revenue
  • Adjusted EBITDA of approximately $79.6 million (up 23% over Q1)

In July, Sanchez Production Partners (SPP) initiated a transaction with Sanchez Energy to acquire 50% interest in Carnero Gathering, LLC. The company expects that the $44 million deal will increase their midstream revenue and adjusted EBITDA to approximately $7 million.

 

Read more at sanchezenergy.com

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Cabot to Reduce Spending in the Eagle Ford http://eaglefordshale.com/news/cabot-to-reduce-spending-in-the-eagle-ford/ http://eaglefordshale.com/news/cabot-to-reduce-spending-in-the-eagle-ford/#respond Mon, 15 Aug 2016 21:37:53 +0000 http://eaglefordshale.com/?p=10152 Cabot Oil and Gas Earnings Report

Cabot Oil and Gas 2016 Q2

Cabot Oil and Gas announced second quarter results, highlighting a 10% production increase, costs reductions of 12% and three Eagle Ford wells added to production.

Related: Cabot Waits to Resume Eagle Ford Drilling

During a recent earnings call, Cabot executives commented on their Eagle Ford operations, saying it is likely they will cut back on the money spent in the region for the rest of 2016. Though the company’s Eagle Ford assets assets exceed the capitol costs, the return doesn’t warrant additional spending at this time.

Cabot’s Eagle Ford Shale assets achieved net production of 14,312 barrels of oil equivalent (Boe) per day during the second quarter, an increase of 10% over the first quarter of 2016. The Company completed and placed on production three net wells during the quarter and plans to drill two Eagle Ford wells during the third quarter.

Dan O. Dinges – Chairman, President & Chief Executive Officer commented “Despite a significant reduction in our Eagle Ford operating activity, including no wells drilled and only three wells completed during the quarter, our oil volumes for the second quarter exceeded our guidance due to outperformance from the newer wells that were placed on production. We are forecasting declines in our oil production volumes for the remainder of the year (…) and our plan is to continue to allocate a minimum amount of capital to our Eagle Ford assets”

Second quarter highlights include:

  • Cash flow from operating activities was $85.2 million ($171.2 million for 2015)
  • Net loss was $62.9 million ($27.5 million for 2015)
  • Operating expenses decreased to $2.22 per thousand cubic feet equivalent (Mcfe), a 12% improvement

Read more at cabotog.com

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Eagle Ford Gains One Rig this Week http://eaglefordshale.com/drilling-rig-count/eagle-ford-gains-one-rig-this-week/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-gains-one-rig-this-week/#respond Sat, 13 Aug 2016 19:32:58 +0000 http://eaglefordshale.com/?p=10177 Eagle Ford Rigs

Eagle Ford Operators Put Rigs Back Online

The Eagle Ford Shale rig count gained one, ending the week ending with 44 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, a group of citizens from one Nordheim is suing the Texas Railroad Commission over plans for a waste site in their community.

Read more: Nordheim Citizens Sue Texas Railroad Commission

A total of 479 oil and gas rigs were running across the United States this week, and increase from last week of17. 83 were targeting natural gas (two more than the previous week) and 396 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.) 230 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

10 rigs in the region targeted natural gas this week with the commodity trading at $2.60/mmbtu.

The Eagle Ford rigs targeting oil dropped to 34 with WTI oil prices inching to $44.49, a $2.83 increase this week. 

A total of 37 rigs are drilling horizontal wells, one is drilling directional wells and six are vertical.

Karnes County leads development in the region with eight 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 8 AUSTIN 0 0
WEBB 8 8 BEE 0 0
DIMMIT 7 7 BRAZOS 0 0
GONZALES 3 3 COLORADO 0 0
LA SALLE 4 3 FAYETTE 0 0
LAVACA 3 3 GOLIAD 0 0
ATASCOSA 2 2 LEE 0 0
DUVAL 0 2 LEON 0 0
LIVE OAK 2 2 MADISON 0 0
BURLESON 1 1 MAVERICK 0 0
DE WITT 1 1 MILAM 0 0
FRIO 1 1 WASHINGTON 0 0
GRIMES 1 1 WILSON 0 0
MCMULLEN 1 1 ZAVALA 0 0
ROBERTSON 1 1 BASTROP 0 0

Eagle Ford Shale News

Texas Oilfield Relief Initiative Takes Shape

EOG Boasts 2,000 Eagle Ford Locations

Nordheim Citizens Sue Texas Railroad Commission

Chesapeake to Run 3 Rigs 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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Texas Oilfield Relief Initiative Takes Shape http://eaglefordshale.com/news/texas-oilfield-relief-initiative-takes-shape/ http://eaglefordshale.com/news/texas-oilfield-relief-initiative-takes-shape/#respond Thu, 11 Aug 2016 13:48:55 +0000 http://eaglefordshale.com/?p=10166 TX RRC Logo

Texas Railroad Commission

The Texas Railroad Commission is getting a facelift designed to benefit public and industry interests.

Related: Nordheim Citizens Sue Texas Railroad Commission

Railroad Commissioner Christi Craddick gave more details this week on the Texas Oilfield Relief Initiative, a new project designed to make the state’s energy regulatory body more efficient and effective. Craddick says that the initiative will still ensure public and environmental protections while also reducing the regulatory administrative burden on industry.

“With the current industry downturn, at stake is the survival of the state’s small producers and the oil industry’s many marginal wells, which make up 85 percent of total U.S. oil wells and 18 percent of the nation’s total oil output,” said Judy Stark, Panhandle Producers and Royalty Owners Association Executive Vice President. “During this critical time, Commissioner Craddick’s initiative will provide relief to Texas’ independent producers, the backbone of both our state and nation’s oil industry. For that, PPROA’s members are truly grateful.”

 

Industry officials and interest groups have been quick to praise the initiative, including representatives of the Texas Independent Producers and Royalty Owners Association, Panhandle Producers and Royalty Owners Association, Texas Alliance of Energy Producers, Permian Basin Petroleum Association and the Texas Oil and Gas Association.

 

Details of the Texas Oilfield Relief Initiative that will reduce adminstrative burdens include:
  • Identify agency reports and filings that can be reduced or eliminated
  • Amend rules to modify gas well deliverability reporting requirements
  • Reduce the need for G-10  filings except for surface commingled production
  • Allow a calculated well shut-in pressure to be provided when filing Form G-10 for gas wells
  • Amend production requirements for marginal and stripper wells
  • Revise “Active Oil Well” definition from ten barrels of oil (BO) per month for 3 consecutive months to five BO per month for 3 consecutive months or any reported production in each month for a consecutive 12 month period (SWR 15)
  • Revise “Active Gas Well” definition from 100 mcfg per month to 50 mcfg per month or any reported production in each month for a consecutive 12 month period (SWR 15)
  • Implement a revised internal inspection priority system
  • Reviewing washout factors to determine whether different washout factors should be used in certain areas of the state to calculate cement tops
  • Identify counties or portions of counties in which the usable quality water protection depth is constant.
  • Issue guidance for implementation of the Texas Environmental, Health & Safety Audit Privilege Act, permitting operators of new property to identify and remedy violations resulting previous to their ownership
  • Conduct an extensive review of all Railroad Commission forms required determine whether data collected is currently used or no longer necessary. Eliminate forms no longer useful to the Commission’s regulatory functions to reduce regulatory administrative burden on staff and industry.
  • Simplify the complete duplication of a drilling permit application with a sworn statement of no changes to the original application

Read more at rrc.texas.gov

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EOG Boasts 2,000 Eagle Ford Locations http://eaglefordshale.com/news/eog-boasts-2000-eagle-ford-locations/ http://eaglefordshale.com/news/eog-boasts-2000-eagle-ford-locations/#respond Wed, 10 Aug 2016 17:00:22 +0000 http://eaglefordshale.com/?p=10158 EOG Earnings Report

EOG Resources 2016 Q2

EOG resources announce they have increased their Eagle Ford investments to almost 2,000 locations.

Related: EOG Highlights Eagle Ford Well Performance

For the second quarter of 2016, EOG Resources reported a net loss of $292.6 million while increasing their premium drilling locations from 3,200 to 4,300. They were also able to decrease cash operating costs per unit by 15% compared to full-year 2015.

Eagle Ford Operations

During a conference call last week, EOG executives highlighted their Eagle Ford assets, saying these continue to lead the company in activity and production.

Lloyd W. Helms, Jr. – Executive Vice President, Exploration & Production commented, “Year after year, we improve our well productivity in the Eagle Ford. Much of this year’s increase can be attributed to our shift to premium drilling. However, just 60% of our 2016 drilling program is premium, so we expect to see improvement for many years to come.”

Eagle Ford Highlights for 2016 Second Quarter

  • Increased premium inventory by 390 net drilling locations to almost 2,000 total
  • Completed 60 wells with an average treated lateral length of 4,800 feet per well
  • Averaged 30-day initial production rate per well of 1,705 barrels of oil equivalent per day (Boed)
  • Droped total well cost another 11% year to date to $5.1 million

Read more at eogresources.com

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