Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Wed, 04 May 2016 18:37:40 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Anadarko Holds the Line on Spending http://eaglefordshale.com/news/anadarko-holds-the-line-on-spending/ http://eaglefordshale.com/news/anadarko-holds-the-line-on-spending/#respond Wed, 04 May 2016 18:37:40 +0000 http://eaglefordshale.com/?p=9760 Anadarko Earnings Report

Anadarko First Quarter Earnings

Anadarko Petroleum Corporation released its first quarter financials this week saying they have no plans to increase spending, regardless of crude prices.

Related: Colorado School District Battles Anadarko

Woodlands-based Anadarko announced$1.03 billion net loss for the first quarter of 2016 as well as a year-over-year capital reduction of approximately 50 percent. In an earnings call this week, executives stressed their current focus on safety and productivity and reported saving $800 million by reducing the dividend and staffing

Eagle Ford Activity

Anadarko’s capital investment in the Eagle Ford for the first quarter was $37 million with production at 76 MBOE/d compared to 88MBOE/d for the same period last year. The company currently has zero rigs running in the region.

“What can you expect from us through the balance of the year? Do not expect us to increase our capital spending this year, even if oil exceeds $50,” said CEO R.A. Walker. “We’ll be very patient as we look beyond 2016 to a sustained higher-price environment to increase capital and return to a growth mode, if warranted.”

Anadarko is facing legal challenges in Colorado, where they are working on an agreement with the Boulder Valley School District over oil and gas drilling rights on an adjacent property new K-8th grade school. The district wants the company to relinquish the surface use rights they hold or agree to only access oil and gas through horizontal drilling.

Read more at Anadarko.com

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Eagle Ford Waste Facility Approved Amidst Protests http://eaglefordshale.com/news/eagle-ford-waste-facility-approved-amidst-protests/ http://eaglefordshale.com/news/eagle-ford-waste-facility-approved-amidst-protests/#respond Tue, 03 May 2016 19:07:24 +0000 http://eaglefordshale.com/?p=9755 Eagle Ford Waste Dump

Waste Dump Not Wanted in Eagle Ford

The Eagle Ford will become home to a new oil and gas waste dump in the midst of huge community opposition.

Related: Oilfield Waste is Still Big Business

Tuesday morning, the Texas Railroad Commission (RRC) gave granted a permit for the dump to be build on 143 acres in Nordheim, Texas.

Pyote Reclamation System has been trying to get approval for this project for more than three years, but the process has been mired in controversy. Many of the 307 residents of Nordheim have openly opposed the landfill, citing concerns over flooding and that the potentially dangerous site is too close to the city and their school.

Residents have been very proactive, sending in over 200 protest letters and even showing up at RRC meetings. After Tuesday’s decision, many said they will continue to fight.

“Does your client understand the social license to operate they have asked for here?” Commissioner Ryan Sitton asked the attorney for the company that wants to build and operate the site. “I’ll be candid. I don’t like the site.”

Once complete, the facility will receive waste products from drilling sites in the Eagle Ford Shale that can include oil-based mud, soil contaminated by oil spills, and drill cuttings.

Read more at rrc.tx.gov

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Cabot Waits to Resume Eagle Ford Drilling http://eaglefordshale.com/news/cabot-waits-to-resume-eagle-ford-drilling/ http://eaglefordshale.com/news/cabot-waits-to-resume-eagle-ford-drilling/#respond Mon, 02 May 2016 18:14:30 +0000 http://eaglefordshale.com/?p=9744 Cabot Earnings Report

Cabot Oil & Gas First Quarter Earnings

Cabot executives recently announced plans to drill three Eagle Ford wells in second half of the year.

Related: Cabot Reduces Spending & Activity in Eagle Ford

Cabot Oil and Gas delivered their 2016 first quarter results last week and credited their solid performance to financial discipline.

Quarterly highlights include a net loss of $55.4 million along with a positive cash flow of $62.1 million. The company decreased operating expenses to $2.26 per thousand cubic feet equivalent (Mcfe), a 3 percent improvement compared to $2.33 per Mcfe in the first quarter of 2015.

CEO Dan Dinges commented, “At the current strip, our plans for the remainder of the year are focused solely on maintaining all of our leasehold obligations through 2016, and not increasing our operating activity above these minimum levels. However, our anticipated backlog of 15 drilled uncompleted wells at year end 2016 does allow for flexibility.”

Eagle Ford Activity

During the first quarter of the year, Cabot continued to focus on capital efficiency and cost savings for its Eagle Ford operations. Completions costs were down by approximately 30% compared to the same quarter in 2015. The company is not currently operating any rigs in the Eagle Ford Shale, but have plans to drill three additional wells in the second half  of 2016.

Other Eagle Ford highlights include:

  • Net oil production was 11,908 Bbls per day, a decrease of 6 percent sequentially compared to the fourth quarter of 2015.
  • Drilled 3 net wells and completed and placed nine net wells on production
  • Wells have an average completion lateral length of 7,760 feet
  • Completed the company’s longest Eagle Ford well to-date with 46 stages and a lateral length of 11,200 plus feeta

Read more at cog.com

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Eagle Ford Rig Count Drops Below 40 http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-drops-below-40/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-drops-below-40/#respond Sat, 30 Apr 2016 12:17:29 +0000 http://eaglefordshale.com/?p=9731 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Drop

The Eagle Ford Shale rig count fell again this week, ending with 38 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news,Pioneer Natural Resources announces first quarter results this week and hinted that they might restart Eagle Ford activity when crude hits $50.

Read more: Pioneer Waiting on $50 Oil for Eagle Ford

A total of 419 oil and gas rigs were running across the United States this week, down 12 from last week. 87 were targeting natural gas (one less than the previous week) and 332 were targeting oil in the U.S. (11 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 185 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs increased in the Eagle Ford increased to six this week as natural gas prices rose slightly to $2.18/mmbtu.

The Eagle Ford rigs targeting oil fell this week to 32 with  WTI oil prices continue their climb, ending the week at $45.92, a 2.19 increase this week. A total of 35 rigs are drilling horizontal wells, zero are drilling directional wells, and three are vertical rigs.

Karnes County leads development in the region with 11 rigs running this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

County Previous Week Current Week County Previous Week Current Week
KARNES 10 11 FRIO 0 0
WEBB 10 10 GOLIAD 0 0
LA SALLE 7 6 GRIMES 0 0
DE WITT 5 4 LAVACA 0 0
DIMMIT 2 2 LEE 0 0
GONZALES 2 2 LEON 0 0
ATASCOSA 1 1 LIVE OAK 0 0
DUVAL 0 1 MADISON 0 0
ZAVALA 2 1 MAVERICK 1 0
AUSTIN 0 0 MCMULLEN 0 0
BEE 0 0 MILAM 0 0
BRAZOS 0 0 ROBERTSON 0 0
BURLESON 0 0 WASHINGTON 0 0
COLORADO 0 0 WILSON 0 0
FAYETTE 0 0 BASTROP 0 0

Eagle Ford Shale News

Fracking & Water Safety: New Technology

Pioneer Waiting on $50 Oil for Eagle Ford

Will Koch Restart Pipeline?

 

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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Fracking & Water Safety: New Technology http://eaglefordshale.com/news/fracking-water-safety-new-technology/ http://eaglefordshale.com/news/fracking-water-safety-new-technology/#respond Thu, 28 Apr 2016 22:06:32 +0000 http://eaglefordshale.com/?p=9725 fracking water contamination

New Way to Test Fracking Contamination

A new test will help monitor the risk of contamination of groundwater due to fracking activity.

Related: Fracking Facts: Is Our Water Supply at Risk?

As fracking has increased across America and around the world, so has the debate about the risks to the environment and our water supply. Numerous studies are presenting contradictory conclusions and making it hard to determine the truth about the safety of fracking.

Related: Is Fracking Safe?

Researchers from the UK have developed a new way to check for water contamination and could help monitor the safety of shale gas and coal bed methane extraction.

During the fracking process, shale rocks below ground are split with high-pressure fluids to release gas that is recovered for fuel and some claim that the process adversely affects ground water close by.

Dr Stuart Gilfillan, of the University of Edinburgh’s School of GeoSciences, who led the project, said: “Creating this fingerprint test will enable gas exploration and extraction to be carried out responsibly and should help address public concerns over this technology. It is important that careful monitoring of methane levels in nearby waters is carried out when commercial extraction begins.”

These scientist plan to presenting their findings at the European Geosciences Union Conference in Vienna.

Other fracking studies:

  • Yale: measured well water near fracked wells concludes that ‘there was no evidence of association with deeper brines or long-range migration of these compounds to the shallow aquifers
  • EPA: claimed certain fracking activities that have the potential to impact drinking water resources but found no evidence that these activities have led to widespread, systemic impacts on drinking water in the United States.
  • John Hopkins : concluded possible adverse health outcomes associated with fracking

Read more at ScienceDaily.com

 

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Pioneer Waiting on $50 Oil for Eagle Ford http://eaglefordshale.com/news/pioneer-waiting-on-50-oil-for-eagle-ford/ http://eaglefordshale.com/news/pioneer-waiting-on-50-oil-for-eagle-ford/#respond Wed, 27 Apr 2016 16:07:35 +0000 http://eaglefordshale.com/?p=9713 Pioneer Earnings Report

Pioneer First Quarter Earnings

Pioneer Natural Resources announces first quarter results and hints that they might restart Eagle Ford activity when crude hits $50.

Related: Pioneer Halts Eagle Ford Drilling

In February, Pioneer announced they were halting all drilling in the Eagle Ford due to severe downturn. But in an earnings call this week, executives gave some hints about their plans for their South Texas assets.

Scott Sheffield, Chairman and CEO commented, “…so if WTI gets to $50 we would look at restarting Eagle Ford. We’ll have to make a decision at the time if we had 10 rigs for instance and 17, do we take two of those rigs and put them in the Eagle Ford? But, I could see us adding a couple of rigs in Eagle Ford.”

For the first quarter of 2016, Pioneer Natural Resources had an adjusted loss of $104 million alongside record production. Other Q1 highlights include:

  • Production: 222,000 barrels of oil equivalent per day. Oil production is up 10,000 barrels of oil per day or 9% versus the fourth quarter of 2015.
  • 55 horizontal wells on production in the Spraberry/Wolfcamp
  • Reduced combined production cost and G&A expense per barrel oil equivalent (BOE) by 15% compared to the fourth quarter of 2015
  • starting up the new Targa-operated Spraberry/Wolfcamp gas processing plant, which has a capacity of 200 million cubic feet per day (MMCFPD); and
  • increasing oil and gas derivative coverage for 2017.

Pioneer plans to keep capital expenditures at $2 billion for 2016, $1.5 billion for drilling and $150 million for vertical integration systems upgrades and field facilities.

Read more at pxd.com

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Will Koch Restart Pipeline? http://eaglefordshale.com/news/will-koch-restart-pipeline/ http://eaglefordshale.com/news/will-koch-restart-pipeline/#respond Mon, 25 Apr 2016 22:49:37 +0000 http://eaglefordshale.com/?p=9707
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Eagle For Rig Counts Slips to 40 http://eaglefordshale.com/drilling-rig-count/eagle-for-rig-counts-slips-to-40/ http://eaglefordshale.com/drilling-rig-count/eagle-for-rig-counts-slips-to-40/#respond Sat, 23 Apr 2016 12:40:19 +0000 http://eaglefordshale.com/?p=9702 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Hold Steady

The Eagle Ford Shale rig count fell by two, ending the week with 40 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Goodrich Petroleum announced that they are seeking to eliminate approximately $400 million in debt through a Chapter 11 restructuring plan.

Read more:Goodrich Petroleum Files for Chapter 11

A total of 431 oil and gas rigs were running across the United States this week, down one from last week. 88 were targeting natural gas (seven more than the previous week) and 343 were targeting oil in the U.S. (eight less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 187 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs increased in the Eagle Ford remained at five this week as natural gas prices jumped to $2.14/mmbtu.

The Eagle Ford rigs targeting oil fell this week to 35 as WTI oil prices continue their climb, ending the week at $43.73a 3.37 increase this week. A total of 38 rigs are drilling horizontal wells, zero are drilling directional wells, and two are vertical rigs.

Karnes and Webb counties both lead development in the region each running with 10 rigs. 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 11 10 FAYETTE 0 0
WEBB 10 10 FRIO 0 0
LA SALLE 7 7 GOLIAD 0 0
DE WITT 3 5 GRIMES 0 0
DIMMIT 2 2 LAVACA 0 0
GONZALES 3 2 LEE 0 0
ZAVALA 3 2 LEON 0 0
ATASCOSA 2 1 LIVE OAK 0 0
MAVERICK 0 1 MADISON 0 0
AUSTIN 0 0 MCMULLEN 0 0
BEE 1 0 MILAM 0 0
BRAZOS 0 0 ROBERTSON 0 0
BURLESON 0 0 WASHINGTON 0 0
COLORADO 0 0 WILSON 0 0
DUVAL 0 0 BASTROP 0 0

Eagle Ford Shale News

Oil Import Quotas Proposed

Abraxas: 20% Pay Cuts for Top Executives

Goodrich Petroleum Files for Chapter 11

 

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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Oil Import Quotas Proposed http://eaglefordshale.com/news/oil-import-quotas-proposed/ http://eaglefordshale.com/news/oil-import-quotas-proposed/#respond Thu, 21 Apr 2016 19:49:35 +0000 http://eaglefordshale.com/?p=9690 A grassroots movement in the Texas panhandle pushing back against OPEC by calling for quotas on oil and gas imports.

Related: Iranian Oil Will Add to Global Glut

Several pro-industry groups in the Texas panhandle have come together to create the Panhandle Import Reduction Initiative, an effort to propose a ban on shale oil imports from abroad. The group is working to gather signatures and raise $100,000 that will allow them to present the plan to the next president after the elections in 2017.

Supporters of the initiative are angry that oil-producing countries failed to reach an agreement to freeze oil production levels Sunday in Doha, Qatar and the announcement that OPEC will increase production again.

Oil and gas strategist, Daniel Fine commented that “What we propose to the country and to the industry is a return to President Eisenhower in 1959, when he, by proclamation, established import quotas on foreign oil,” Fine said. “We will take care of Canada, our hemispheric ally. But OPEC, no. We’re going to rigorously put quotas on the import of oil.”

In 1959, President Eisenhower stablished a similar quota system that remained in effect for 14 years in order to sustain a healthy oil industry for national security purposes.

In January, the Obama Administration entered into an historic and controversial nuclear deal with Iran that includes lifting economic sanctions, which could add millions of barrels to the global glut.

Read more at PRnewswire.com

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Abraxas: 20% Pay Cuts for Top Executives http://eaglefordshale.com/news/abraxas-pay-cuts/ http://eaglefordshale.com/news/abraxas-pay-cuts/#respond Tue, 19 Apr 2016 19:58:52 +0000 http://eaglefordshale.com/?p=9669 Abraxas Pay Cuts

Abraxas Execs Receive 20% Pay Cuts

In the wake of a rough 2015, Abraxas Petroleum’s top executives are taking serious measures to shore up the company’s bottom line, including pay cuts and deferred bonuses of over $1 million

Related: Abraxas Chief Slashes Salary

According to a recent filing with the U.S. Securities & Exchange Commission, the leaders of this Eagle Ford producer are taking deep cuts in order to keep the company afloat.

At the end of 2014, CEO, Robert Watson anticipated a tumultuous 2015 and announced he would voluntarily cut his salary by 20 percent due to stressful market conditions. The recent filing confirms that Watson and the other executives all took 20 percent pay cuts.

“Given the currently depressed nature of the oil and gas industry, as well as Abraxas’ 2015 stock price and operational performance, the Compensation Committee deferred its decision on paying 2015 bonuses. At this time the Compensation Committee does not expect that 2015 bonuses will be paid unless industry conditions materially improve.”

For 2015, Abraxas reported the following highlights for its Eagle Ford operations:

  • Wells from Atascosa and McMullen Counties produced from 8,000 to 11,000 feet
  • Two Eagle Ford wells drilled and completed by the summer of 2015
  • Dropped 38 South Texas Eagle Ford proved undeveloped cases from our reserve report due to lack of economic viability at the lower commodity prices. (Approximately 7.8 MMBOE of net reserves
  • Average oil production 305,797 (Bbls)
  • Average Gas production 325,942 (Mcf)
Abraxas pay cuts

click to enlarge

Read more at AbraxasPetroleum.com

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