Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Wed, 23 Jul 2014 21:50:52 +0000 en-US hourly 1 http://wordpress.org/?v=3.8.3 ZaZa Energy Gathers Funds for Eaglebine Development http://eaglefordshale.com/news/zaza-energy/ http://eaglefordshale.com/news/zaza-energy/#respond Wed, 23 Jul 2014 16:18:17 +0000 http://eaglefordshale.com/?p=6265 Eagle Ford & Eaglebine Map

Eagle Ford & Eaglebine Map | Click to Enlarge

Eagle Ford-focused ZaZa Energy Corp. entered into a $7.5 stock deal with Los Angeles-based Crede Capital Group LLC, the company said in late July of 2014.

The proceeds will fund additional development and lease acquisitions in ZaZa’s East Texas area, the company said in a prepared release.

Crede purchased a total of $5-million of ZaZa common stock, priced at $0.83 each. The investment will be made in two phases, according to the company. The first phase closed on July 21st. The transaction includes 0.6 warrants for every share of ZaZa common stock with a price of $1.1205 per share.

The second phase, which is expected to close in late October, also includes 0.6 warrants for every share of ZaZa common stock. The price for additional shares will be determined by the closing price on the day of closing.

ZaZa – EOG Resources East Texas Eagle Ford JV

In March of 2013, ZaZa Energy and EOG Resources finalized terms on a joint venture (JV) targeting the Eaglebine in Grimes, Madison, Montgomery, Trinity, and Walker counties.

Read more: EOG – ZaZa Joint Venture in the Eaglebine

The company has re-focused its attention to the Eaglebine, after divesting 10,300 net Eagle Ford acres in July of 2013 to a subsidiary of Sanchez Energy for $28.8 million. Approximately 82% of ZaZa’s first quarter 2014 production came from the Eaglebine.

Read more: ZaZa Continues Laying Groundwork for Eagle Ford Growth

Read more at zazaenergy.com

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TPA: Pipeline Industry Has Positive Economic Impact on Texas http://eaglefordshale.com/pipeline-midstream-news/texas-pipeline-industry-has-positive-economic-impact-on-state/ http://eaglefordshale.com/pipeline-midstream-news/texas-pipeline-industry-has-positive-economic-impact-on-state/#respond Tue, 22 Jul 2014 14:38:11 +0000 http://eaglefordshale.com/?p=6262 Pipeline Photo

Pipeline Being Laid | Click to Enlarge

As development continues to grow in the Eagle Ford Shale and in West Texas’ Permian Basin, the need for additional midstream infrastructure has also grown. Not surprisingly, the pipeline industry has benefited in conjunction with the boom, and according to a new study, Texas and its’ people have as well.

In a recently released Texas Tech University study, commissioned by the Texas Pipeline Association (TPA), the state’s oil and gas pipeline industry purportedly provided $33-billion in overall economic impact, and supported more than 165,000 jobs in 2013. During the same time frame, the study claims industry provided for $18.7-billion in gross state revenue, and injected $1.6-billion in state and local revenue taxes.

“Due to a dramatic increase in the state’s oil and gas production, the demand for additional pipelines is expected to continually increase in the coming years. The communities that are home to pipeline projects are perfectly poised to see economic benefit from the industry in terms of more jobs and increased tax revenues,” said TPA President Thure Cannon.

According to the study’s conservative estimates, pipeline operations and construction will contribute $374-billion in total economic output, and sustain 171,000 jobs annually for the next decade. During the same time frame, the study estimates $212-billion in additional gross state product and $19.5-billion in state and local government revenues.

Eagle Ford Midstream Activity

During 2014, several midstream/pipeline projects have been announced for the Eagle Ford. See below for links to recent stories:

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Eagle Ford Shale Rig Count Decreases by Six to 265 http://eaglefordshale.com/drilling-rig-count/eagle-ford-shale-rig-count-decreases-six-265/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-shale-rig-count-decreases-six-265/#respond Mon, 21 Jul 2014 14:00:12 +0000 http://eaglefordshale.com/?p=6235 Penn Virginia Eagle Ford Acreage Map

Penn Virginia Eagle Ford Acreage Map | Click to Enlarge

The Eagle Ford Shale rig count decreased by six to 265 rigs running across our coverage area by the end of last week.

In recent news, Penn Virginia Corp. announced in July of 2014 that it will acquire ~13,125 (11,660 net) Eagle Ford acres in Lavaca County, TX for $45-million. The transaction will bring the company’s total Eagle Ford position to 142,500 (101,800 net) acres. The newly acquired assets are located next to the company’s Shiner area. Officials estimate ~150 gross potential drilling locations from the acquired acreage, most of which will be prospective for the Upper Eagle Ford Shale.

Read more: Penn Virginia Acquires Eagle Ford Acreage – $45 Million

The U.S. rig count decreased by four to 1,871 rigs running by the end of last week. A total of 315 rigs were targeting natural gas (four more than the previous week) and 1,554 were targeting oil in the U.S. (nine less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.).  888 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 (212 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 10 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 fell from the previous week to $3.95/mmbtu on Friday afternoon.

The oil rig count decreased by seven to 255 rigs running by the end of last week. WTI oil prices increased by ~$2 from the previous week, trading at $102.97/bbl on Friday afternoon. Eagle Ford light crude traded at $99.75/bbl on July 18th.

A total of 240 rigs are drilling horizontal wells, 11 rigs are drilling directional wells, and 14 rigs are drilling vertical wells. Karnes, La Salle, and De Witt each have at minimum 30 rigs running. La Salle County has the highest rig count this week at 33. 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
LA SALLE 31 33 GRIMES 3 3
KARNES 30 31 LEE 3 3
DE WITT 29 30 FRIO 2 2
WEBB 23 23 LEON 1 2
DIMMIT 24 22 BEE 4 1
MCMULLEN 24 21 COLORADO 1 1
ATASCOSA 15 16 DUVAL 1 1
BRAZOS 15 15 MAVERICK 1 1
GONZALES 16 15 ROBERTSON 1 1
LAVACA 10 10 WILSON 1 1
MADISON 10 9 AUSTIN 0 0
ZAVALA 9 9 GOLIAD 0 0
LIVE OAK 9 7 MILAM 1 0
BURLESON 4 5 WASHINGTON 0 0
FAYETTE 3 3 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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Swift Energy – PT Saka Energi Close Eagle Ford JV Deal http://eaglefordshale.com/news/swift-energy-pt-saka-energi-close-eagle-ford-jv-deal/ http://eaglefordshale.com/news/swift-energy-pt-saka-energi-close-eagle-ford-jv-deal/#respond Fri, 18 Jul 2014 14:26:21 +0000 http://eaglefordshale.com/?p=6202 Swift Eagle Ford Acreage Map

Swift Energy Eagle Ford Acreage Map | Click to Enlarge

Houston-based Swift Energy and PT Saka Energi Indonesia (Saka) have closed on their Eagle Ford joint venture to develop ~8,300 acres of the Fasken field in Webb County, TX.

The $175-million agreement was previously announced in May of 2014. At closing, Swift received approximately $147-million, which included an agreed upon $125-million in cash consideration. Approximately $38-million of Saka’s original $50 million drilling carry obligation remains; however, Swift officials indicate that commitment should be fulfilled during the 2016 calendar year.

Under the agreement, Saka gains a 36% interest in Swift’s Fasken acreage. Swift will remain the operator for the area.

Read more: Swift Energy – PT Saka Energi Eagle Ford Joint Venture

Swift Energy CEO Terry Swift, said, “both parties have worked diligently towards the conclusion of this transaction, and we look forward to working alongside Saka to optimize this asset’s value through an advanced technology development program,”

In related news, Swift Energy also announced in May of 2014, that it expanded a long term agreement for natural gas gathering services in Webb County with Howard Energy Partners and its affiliates. Under the terms of the agreement, Swift Energy will have up to 160-million cubic feet of gas per day of firm capacity for its Fasken field natural gas production.

Read more at swiftenergy.com

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Riches from the Eagle Ford Boom – Video http://eaglefordshale.com/news/riches-from-the-eagle-ford-boom/ http://eaglefordshale.com/news/riches-from-the-eagle-ford-boom/#respond Thu, 17 Jul 2014 14:48:19 +0000 http://eaglefordshale.com/?p=6204 You may be curious to know exactly how some folks are getting rich from the Texas oil boom, and better yet, what you can do to ride the wave.

The KPRC-TV report provides a concise look at how development of the oil-rich Eagle Ford formation has brought wealth to the small South Texas town of Three Rivers. The story also provides a hint at an industry segment some locals suggest would be a money-maker.

Boom Times in Three Rivers, TX

Prior to the beginning of the boom in 2008, Three Rivers, which is about 70 miles South of  San Antonio, TX, was a sleepy little town, but that has all changed. For local residents “oil money” has changed their lives and the town in which they live. Recently, Three Rivers built an $11-million dollar junior-senior high school from tax revenues derived from oil & gas development. And some locals with mineral rights in the area have benefitted greatly from lease bonuses and “mailbox money” (i.e. royalty payments) from oil & gas production.

video platformvideo managementvideo solutionsvideo player

According to the University of Texas at San Antonio, the Eagle Ford Shale had a $61 billion economic impact across a 20-county area in 2012. That’s a big chunk of change, and the money is funneling into the pockets of oil & gas company executives, tertiary industry, the general workforce, mineral owners, investors and shrewd businessmen.

Getting Rich from the Eagle Ford Shale

So, the question is, what can you do to make money from the Eagle Ford boom? The best thing to do now for the majority of folks is go to work in the field, or open a business that serves the needs of the workforce. Certainly, everyone has different circumstances to consider, and not everyone has the necessary capital to open a business, but the money is there for the taking – you just have to be willing to work hard for it.

Oil patch jobs have provided individuals and families with lucrative salaries. Some rig workers can make upwards of 80k – 120k annually. Experience counts for certain positions, but entry-level opportunities can still be had as development continues to ramp up in the region. CDL Drivers are also in high demand in the Eagle Ford for hauling crude, supplies, frack water, etc. Their salaries can also top six figures.

Due to Eagle Ford development being concentrated in mainly remote areas, a growing workforce exists without access to a wide variety of amenities (i.e. washaterias, restaurants, grocery stores, etc.). Opportunities for investors to get on-board with projects in the service industry have the potential for paying off, atleast up-front while there is less competition.

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Cardinal Energy Group Acquires 2,800 Net Eagle Ford Acres http://eaglefordshale.com/news/cardinal-energy-group-acquires-2800-net-eagle-ford-acres/ http://eaglefordshale.com/news/cardinal-energy-group-acquires-2800-net-eagle-ford-acres/#respond Wed, 16 Jul 2014 14:00:33 +0000 http://eaglefordshale.com/?p=6196 Gonzales County Eagle Ford Shale Map

Gonzales County, TX

Dublin, OH-based Cardinal Energy Group is buying 2,800 net Eagle Ford acres from Hamburg Germany-based Nordic Oil USA 1 LLLP for an undisclosed amount of money.

The acreage is located in Gonzales and Wilson Counties in the oil and liquids-rich window of the play. The acquisition will include operating interests in ten producing wells and one salt water disposal well. The deal also secures production equipment, leases and drilling permits plus other assets needed to operate the wells.

Cardinal CEO Timothy Crawford said in a prepared statement, “we have been diligently looking for an entry into the Eagle Ford Shale formation for the past year.”

According to officials, the newly acquired oil and gas properties are currently producing from the Anacacho and Austin Chalk formations, and also include deep rights in approximately 1,500 net acres, for development of the Eagle Ford Shale and Buda formations. Officials also say other companies operating adjacent and in proximity to this acreage have horizontal wells coming in at 3,000 to 4,000 b/d oil. During the first quarter, EOG Resources, a major Eagle Ford producer, revealed strong initial production rates for two of its Gonzales County wells of 4,940 and 4,195 b/d oil.

According to its company website, Cardinal’s focus is on reclaiming reserves from abandoned or minimally producing oilfields. The company indicates their primary focus is on Texas. Currently, there are 47,000 inactive and “orphan” wells in the state, according to the Texas Railroad Commission.

Read more at cardinalenergygroup.com

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Penn Virginia Acquires Eagle Ford Acreage – $45 Million http://eaglefordshale.com/news/penn-virginia-acquires-eagle-ford-acreage-45-million/ http://eaglefordshale.com/news/penn-virginia-acquires-eagle-ford-acreage-45-million/#respond Tue, 15 Jul 2014 14:00:52 +0000 http://eaglefordshale.com/?p=6188 Penn Virginia Eagle Ford Acreage Map

Penn Virginia Eagle Ford Acreage Map | Click to Enlarge

Penn Virginia Corp. announced in July of 2014 that it will acquire ~13,125 (11,660 net) Eagle Ford acres in Lavaca County, TX for $45-million.

The transaction will bring the company’s total Eagle Ford position to 142,500 (101,800 net) acres. The newly acquired assets are located next to the company’s Shiner area. Officials estimate ~150 gross potential drilling locations from the acquired acreage, most of which will be prospective for the Upper Eagle Ford Shale.

Recently, Penn-Virginia stated it planned to further expand its Eagle Ford position to a minimum of 100,000 net acres. With this most recent acquisition, the company will reach its target goal.

Read morePenn Virginia Seeks to Expand Eagle Ford Position

“This acquisition is an optimal fit with our current acreage position in Lavaca County, and we believe is primarily prospective in the Upper Eagle Ford Shale, but could also have potential in the Lower Eagle Ford Shale and Austin Chalk,” said Penn Virginia CEO H. Baird Whitehead.

Penn-Virginia has been growing aggressively in the Eagle Ford. During the first quarter alone, the company added 6,400 net acres at a cost of $3,000 per acre.

Closing for the recently acquired Lavaca County acreage will be in August of 2014.

Read more at pennvirginia.com

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Eagle Ford Shale Rig Count Decreases by One to 271 http://eaglefordshale.com/drilling-rig-count/eagle-ford-shale-rig-count-decreases-one-271/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-shale-rig-count-decreases-one-271/#respond Mon, 14 Jul 2014 14:00:57 +0000 http://eaglefordshale.com/?p=6171 Statoil and Talisman Eagle Ford Acreage Map

Statoil and Talisman Eagle Ford Acreage Map | Click to Enlarge

The Eagle Ford Shale rig count decreased by one to 271 rigs running across our coverage area by the end of last week.

In recent news, Talisman Energy Inc. and Statoil ASA have tabled plans to to sell their joint venture in the Eagle Ford Shale after offers came in lower than expected, Bloomberg reported in early July of 2014. The companies were seeking around $4-billion for a 50-50 partnership, according to Bloomberg, which cited unidentified sources knowledgeable on the matter.

Read more: Statoil – Talisman Sale of Eagle Ford JV Tabled

The U.S. rig count increased by one to 1,875 rigs running by the end of last week. A total of 311 rigs were targeting natural gas (flat from the previous week) and 1,563 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.).  898 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 (218 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 decreased by three to nine rigs running by the end of last week. Average rig counts for natural gas production in 2012 were around 82 and then dropped to around 41 in 2013. Natural gas prices fell slightly from the previous week to $4.14/mmbtu on Friday afternoon.

The oil rig count increased by one to 262 rigs running by the end of last week. WTI oil prices decreased by nearly $3 from the previous week, trading at $100.76/bbl on Friday afternoon. Eagle Ford light crude traded at $97.25/bbl on July 11th.

A total of 241 rigs are drilling horizontal wells, 11 rigs are drilling directional wells, and 19 rigs are drilling vertical wells. Karnes, La Salle, and De Witt each have at minimum 29 rigs running. La Salle County has the highest rig count this week at 31. 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
LA SALLE 31 31 FAYETTE 4 3
KARNES 30 30 GRIMES 4 3
DE WITT 31 29 LEE 4 3
DIMMIT 22 24 FRIO 3 2
MCMULLEN 21 24 COLORADO 0 1
WEBB 23 23 DUVAL 0 1
GONZALES 13 16 LEON 1 1
ATASCOSA 13 15 MAVERICK 1 1
BRAZOS 16 15 MILAM 1 1
LAVACA 10 10 ROBERTSON 1 1
MADISON 10 10 WILSON 2 1
LIVE OAK 9 9 AUSTIN 0 0
ZAVALA 9 9 GOLIAD 1 0
BEE 5 4 WASHINGTON 1 0
BURLESON 6 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 and/or Smith Service Co’s (Schlumberger) Smith Rig Count.

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Statoil – Talisman Sale of Eagle Ford JV Tabled http://eaglefordshale.com/news/statoil-talisman/ http://eaglefordshale.com/news/statoil-talisman/#respond Fri, 11 Jul 2014 14:02:54 +0000 http://eaglefordshale.com/?p=6129 Statoil and Talisman Eagle Ford Acreage Map

Statoil and Talisman Eagle Ford Acreage Map | Click to Enlarge

Talisman Energy Inc. and Statoil ASA have tabled plans to to sell their joint venture in the Eagle Ford Shale after offers came in lower than expected, Bloomberg reported in early July of 2014.

The companies were seeking around $4-billion for a 50-50 partnership, according to Bloomberg, which cited unidentified sources knowledgeable on the matter. Bids fell short in part because the venture produces especially light condensate, rather than crude oil, which commands more money, the article noted.

In June of 2013, our site reported (via Reuters) that Talisman Energy had retained the Royal Bank of Canada to determine if buyers were interested in the company’s Eagle Ford acreage. Talisman has approximately 70,000 net acres in the play according to a company spokesman.

Read more: Talisman Energy Shopping for Eagle Ford Buyers

Talisman said in March it plans to sell $2-billion of assets in 18 months to re-direct its focus on a smaller number of areas. In July of 2014, the company announced plans to unload its Australian operations.

Talisman and Statoil entered their joint venture in 2010. Last year, Statoil took over operations of the eastern portion of the JV. Statoil has approximately 73,000 net acres in the play.

Read more: Statoil – Talisman JV buys Enduring Resources Eagle Ford Acreage 

Recent Eagle Ford Deal Closings

Recently, several other notable deals have closed as early Eagle Ford players cashed out on their investments in South Texas. Encana closed its acquisition of ~45,000 net Eagle Ford acres from Freeport McMoran on June 20, 2014 for $3.1 billion. Sanchez Energy also closed its $639 million deal with Shell for 106,000 net Eagle Ford acres on June 30th. Earlier this year, Devon Energy closed on its $6 billion Eagle Ford acreage acquisition with Geo Southern.

Read more: Eagle Ford Deal Closings

Read more: Devon Banking on High Returns from Eagle Ford Investment

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U.S. is World’s Largest Oil Producer http://eaglefordshale.com/news/u-s-is-worlds-largest-oil-producer/ http://eaglefordshale.com/news/u-s-is-worlds-largest-oil-producer/#respond Thu, 10 Jul 2014 13:41:05 +0000 http://eaglefordshale.com/?p=6123 U.S. Oil Production

U.S. Oil Production | Click to Enlarge

The U.S. is now the world’s largest producer of oil, surpassing Russia and Saudi Arabia, according to Bank of America Corp. (BAC), as reported in Bloomberg.

U.S. crude oil output in the first quarter surpassed 11-million b/d, which was the highest volume produced by the country in 24 years. The U.S. is expected to hold the top spot through the end of the year, BAC officials said.

Most of that production is coming from Texas and North Dakota, which produced nearly half (48%) of all U.S. oil in April of 2014, according to the Energy Information Administration (EIA). Texas alone produced nearly 3-million b/d in the same month, thanks largely to the Eagle Ford Shale, reaching production levels not seen since the 70s.

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

According to the International Energy Agency (IEA), U.S. oil output will increase to 13.1 million b/d in 2019 and plateau. Most analysts agree the Eagle Ford and Bakken Shale plays, which are largely responsible for production in Texas and North Dakota, will peak around this time, and begin to decline.

Oil Inventories Stacking Up

With the glut of oil being produced in the U.S., crude inventories on the U.S. Gulf Coast (USGC) have recently climbed to record levels according to the EIA, hitting 207.2 million bbl on April 11, 2014. The EIA says the USGC region has about 275 million bbls of current capacity, but more midstream projects pushing oil to the USGC have been scheduled.

To accommodate the influx of oil into the region, several crude oil storage projects are expected along the USGC through 2016. Recently, Haddington Ventures LLC, a midstream oil and gas investment firm, was identified in a Wall Street Journal (WSJ) blog as the designer/builder for a major crude oil storage project in Houston, TX.

Read more: Crude Supply Creates Demand for Storage Projects on USGC

Overall, the challenges that have come and will continue to come with the oil & gas renaissance in the U.S. seem to be outweighing most of the negative impacts. Namely, U.S. energy independence is the most favorable outcome, with tensions growing in Russia and unrest in the Middle East. The EIA predicts the U.S. will be energy independent by 2035.

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