Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Fri, 27 Mar 2015 18:58:46 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.1 Eagle Ford Rigs Down to 153 http://eaglefordshale.com/drilling-rig-count/eagle-ford-rigs-down-to-153/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rigs-down-to-153/#respond Fri, 27 Mar 2015 18:58:46 +0000 http://eaglefordshale.com/?p=7529 be safe. be smart.

TxDot Works to Make Roads Safer

The Eagle Ford Shale rig count decreased by three to 153 rigs running across our coverage by midday Friday.

In recent Eagle Ford news, TxDOT reveals that Texas oil regions saw a surge in traffic deaths in 2014 including 272 people who died  in traffic accidents in the Eagle Ford. Roadways have continued to deteriorate over the past few years as more traffic and heavy trucks damage roads and make for unsafe conditions.

Read more: Eagle Ford Traffic Deaths Increase 13%

The U.S. rig count fell another 21 to 1048 rigs running as of today. A total of 233 rigs were targeting natural gas (down nine from the previous week) and 814 were targeting oil in the U.S. (41 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 462 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 near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas rigs declined by three to 13 rigs by midday Friday. Natural gas prices decreased $.18 from the previous week at $2.61/mmbtu on Friday afternoon.

The oil rig count remained flat at 137 rigs running by midday. WTI oil prices increased $4.33 from the previous week, trading at $50.05/bbl on Friday afternoon and EF light ended up $5.75 at $48.00. A total of 144 rigs are drilling horizontal wells, two rigs are drilling directional wells, and vertical rigs fell to four.  Karnes (24), DeWitt (21), and Webb (19)and LaSalle (17),  have the highest rig counts this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by Count

County Previous Week Current Week County Previous Week Current Week
KARNES 26 24 FAYETTE 1 1
DE WITT 21 21 MADISON 0 1
WEBB 19 19 ROBERTSON 1 1
LA SALLE 17 17 AUSTIN 0 0
DIMMIT 15 14 BEE 0 0
MCMULLEN 12 13 COLORADO 0 0
GONZALES 10 11 GOLIAD 0 0
LIVE OAK 7 6 GRIMES 0 0
ATASCOSA 3 5 LEE 0 0
LAVACA 7 5 LEON 1 0
FRIO 3 4 MAVERICK 1 0
BURLESON 3 3 MILAM 0 0
ZAVALA 3 3 WASHINGTON 0 0
BRAZOS 1 1 WILSON 1 0
DUVAL 1 1 BASTROP 0 0

Eagle Ford Shale News

Chesapeake to Reduce Spending by $500 Million

Enlink Midstream Aquires Pipeline Company

Talisman Energy Cuts Jobs

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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Enlink Midstream Aquires Pipeline Company http://eaglefordshale.com/news/enlink-midstream-aquires-pipeline-company/ http://eaglefordshale.com/news/enlink-midstream-aquires-pipeline-company/#respond Thu, 26 Mar 2015 15:14:33 +0000 http://eaglefordshale.com/?p=7524 Victoria Express Pipeline

Victoria Express Pipeline |Click to Enlarge

Enlink Midstream Partners announced Monday it will acquire Victoria Express Pipeline (VEX) from Devon, giving the new company a “strategic footprint” into the Eagle Ford Shale play.

Read more about the VEX

The deal is estimated to be worth $220 million and includes the following assets:

  • A 56-mile multi-grade crude oil pipeline
  • Facilities at the Port of Victoria with an eight-bay truck unloading terminal and 200,000 barrels of above ground storage
  • Facilities near the origin of the pipeline (under construction) including an eight-bay truck unloading terminal and 160,000 barrels of above-ground storage
  • A condensate pipeline from the Eagle Ford Shale to Victoria

The transaction, expected to close on or about April 1st, is the first of many between Devon and Enlink (formerly Crosstex), who announced a partnership in 2014.

Read more about Devon in the Eagle Ford

Barry E. Davis, EnLink President and Chief Executive Officer. “This transaction marks the first dropdown from Devon to EnLink, and we expect transactions like this to play a significant role in our future growth. These assets will give EnLink a tremendous growth platform in the Eagle Ford Shale. We look forward to providing high-quality midstream services to producers and marketers in the Eagle Ford area.”

Read more at enlink.com

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Eagle Ford Traffic Deaths Increase 13% http://eaglefordshale.com/news/eagle-ford-traffic-deaths-increase-13-percent/ http://eaglefordshale.com/news/eagle-ford-traffic-deaths-increase-13-percent/#respond Wed, 25 Mar 2015 17:48:17 +0000 http://eaglefordshale.com/?p=7520 Gravel Road In The Eagle Ford

Gravel Road In The Eagle Ford

Texas oil regions saw a surge in traffic deaths in 2014 including 272 people who died  in traffic accidents in the Eagle Ford. According to TxDOT, this is an increase of 13 percent over 2013, where 240 people were killed in the 26-county region.

Overall in the Eagle Ford last year, there were 3,658 traffic accidents in which people were killed or seriously injured, up from 3,446 the year before. This is a high percentage of the 8,600 accidents reported statewide.

Related: Another Fatal Crash in the Eagle Ford

Roadways have continued to deteriorate over the past few years as more traffic and heavy trucks damage roads and make for unsafe conditions. Over the years, several several efforts have been put into place to address the road conditions including assembling a task force in 2012 and TxDOT’s Be Safe. Drive Smart. campaign that was launched over the summer.

TxDOT spokeswoman Laura Lopez said that “The number of deaths have increased. We want to remind folks, especially in the energy sector areas, to watch out for those 18-wheelers. And the same message to those in the 18-wheelers, ‘Watch out for vehicles.’ ”

The San Antonio New Express reports that there is a recent surge in road construction across the oil regions to improve conditions and make things safer. Several projects underway in the Eagle Ford include repairs of $5.8 million to Texas 97, FM 1099 and FM 1344 in Wilson and Atascosa counties as well as widening and repair of FM 1916 in Dimmit County at a cost of $999,000.

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Chesapeake to Reduce Spending by $500 Million http://eaglefordshale.com/news/chesapeake-to-reduce-spending-by-500-million/ http://eaglefordshale.com/news/chesapeake-to-reduce-spending-by-500-million/#respond Tue, 24 Mar 2015 14:47:21 +0000 http://eaglefordshale.com/?p=7514 Chesapeake Cuts Budget for 2015

Chesapeake Cuts Budget for 2015

Chesapeake Energy announced on Monday it plans further cuts to its 2015 capital spending. The company will reduce spending, cut rigs and slow production in order to navigate the current low crude pricing environment.

For 2015, Chesapeake will spend $3.5 billion to $4 billion, a $500 million reduction from its last update in February.

Other important spending updates include:

  • Plans to spud and connect to sales approximately 520 and 650 gross operated wells, respectively, in 2015 (a decrease from 1,175 and 1,150 wells in 2014) 
  • Connect to sales approximately 650 gross operated wells, respectively, in 2015 (a decrease from 1,175 and 1,150 wells in 2014).
  • Lowering its targeted 2015 production to 231 236 million barrels of oil equivalent, or average daily production of 635 645 thousand barrels of oil equivalent, which represents 1 3% production growth over the prior year after adjusting for 2014 asset sales.
Doug Lawler, Chesapeake’s Chief Executive Officer, said, “We entered 2015 with a strong liquidity position and we intend to manage it prudently. In response to continued weak commodity prices, we are further reducing capital expenditures and associated drilling activity. As a result, we now forecast ending 2015 with approximately $6 billion in combined cash and borrowing capacity under our credit facility. With this budget revision we anticipate being free cash flow neutral by the end of 2015.”

Legal trouble continues to plague Chesapeake. In January, the company agreed to pay $119 million to settle a class action suite from 2013 that included thousands of royalty owners involving possibly 10,000 wells. And, most recently, a group of landowners in  Bradford County, PA filed a suit alleging that Chesapeake and Williams Partners violated antitrust laws by conspired to restrain trade in the market for gas gathering services. Read more here.

Chesapeake Energy is active all across the Eagle Ford including Atascosa County, Dimmit County, Duval County, Frio County, Goliad County, LaSalle County, McMullen County, Washington County, Webb County and Zavala County.

Photo: © Larryhw | Budget Cuts / Inflation Photo

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Talisman Energy Cuts Jobs http://eaglefordshale.com/news/talisman-energy-cuts-jobs/ http://eaglefordshale.com/news/talisman-energy-cuts-jobs/#respond Mon, 23 Mar 2015 16:33:17 +0000 http://eaglefordshale.com/?p=7507 Talisman Cuts Jobs

Talisman Cuts Jobs

Talisman Energy Inc., with extensive holdings in the Eagle Ford shale play, announced this week that it is cutting its workforce due to the continuing drop in crude prices.

Related: Energy Giants Announce Layoffs

Layoffs will affect between 150-200 employees and contractors from Talisman’s head office in Calgary. These cuts coincide with the company’s plans to trim its 2015 capital program to $2.1 billion, a 30 percent drop from 2014. So far, the company has not announced any job cuts in its Texas operations.

Talisman spokesperson, Brent Anderson, commented to Bloomberg that “Our decision to reduce our workforce numbers is based on the decline in global commodity prices, which has meant a reduced capital spending program for us this year. The impacts of the reductions are hitting all functions supporting all parts of the organization.”

Oil prices have fluctuated since the first of the year. After a short move upwards, the price has hovered around the mid forties for the past two weeks.

In February, Talisman Energy shareholders finalized the sale of the company to Repsol and expected to close in the second quarter of 2015. The company announced that job cuts are unrelated to this acquisition.

Read more: Repsol to Aquire Talisman Energy

Talisman’s interests in the Eagle Ford shale play are located in southeast Texas, where the Company now holds approximately 59,000 net acres of land in the following counties:

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Eagle Ford Rig Count Down 10 http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-down-10/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-down-10/#respond Fri, 20 Mar 2015 20:45:29 +0000 http://eaglefordshale.com/?p=7505 Mineral Owners May be Losing Money

Mineral Owners May be Losing Money

The Eagle Ford Shale rig count decreased by 10 to 153 rigs running across our coverage by midday Friday.

In recent Eagle Ford news, mineral owners are finding they must be extra vigilant to make sure their interests are protected. A four year statute of limitations to correct royalty payment errors has many mineral owners scrambling to make sure they are being treated fairly. 

Read more: Mineral Owners Race the Clock in Texas

The U.S. rig count fell another 56 to 1069 rigs running as of today. A total of 242 rigs were targeting natural gas (down 15 from the previous week) and 825 were targeting oil in the U.S. (41 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)  465 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 near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas rigs declined by one to 16 rigs by midday Friday. Natural gas prices increased $.06 from the previous week at $2.79/mmbtu on Friday afternoon.

The oil rig count declined by 15 to 137 rigs running by midday. WTI oil prices increased $.91 from the previous week, trading at $45.72/bbl on Friday afternoon and EF light ended up $1.00 at $42.25. A total of 145 rigs are drilling horizontal wells, two rigs are drilling directional wells, and vertical rigs were at six.  Karnes (26), LaSalle, DeWitt (21), and Webb (19) have the highest rig counts this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by Count

County Previous Week Current Week County Previous Week Current Week
KARNES 29 26 FAYETTE 0 1
DE WITT 19 21 LEON 2 1
WEBB 19 19 MAVERICK 1 1
LA SALLE 20 17 ROBERTSON 1 1
DIMMIT 15 15 WILSON 1 1
MCMULLEN 15 12 BASTROP 0 0
GONZALES 10 10 AUSTIN 0 0
LAVACA 7 7 BEE 0 0
LIVE OAK 8 7 COLORADO 1 0
ATASCOSA 3 3 GOLIAD 0 0
BURLESON 3 3 GRIMES 0 0
FRIO 3 3 LEE 0 0
ZAVALA 3 3 MADISON 1 0
BRAZOS 1 1 MILAM 0 0
DUVAL 1 1 WASHINGTON 0 0


Eagle Ford Shale News

Halcón Announces 2014 Earnings

Chesapeake Lawsuit Adds to Legal Trouble

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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Chesapeake Lawsuit Adds to Legal Trouble http://eaglefordshale.com/news/chesapeake-lawsuit-adds-to-legal-trouble/ http://eaglefordshale.com/news/chesapeake-lawsuit-adds-to-legal-trouble/#respond Wed, 18 Mar 2015 13:57:04 +0000 http://eaglefordshale.com/?p=7493
White Tail Deer at Center of Lawsuit

White Tail Deer at Center of Lawsuit

Legal trouble continues to haunt Chesapeake Energy as mineral owners dispute royalty payments and contracts. This week, white tailed deer are at the center of another lawsuit that is now in a San Antonio court.

A recent lawsuit filed in January, claims that a Chesapeake employee hunted, killed and removed the white-tailed deer that roamed the Dimmett County property of James Birkner. Birkner’s lease with Chesapeake dates from 2010 and does not authorize hunting by Chesapeake employees on this land. Once the allegations were made, the company abruptly ended negotiations to renew its lease and vanished from the property. The claims against Chesapeake include negligence, trespass and breach of contract.

The company has other legal trouble. In January, the company agreed to pay $119 million to settle a class action suite from 2013 that included thousands of royalty owners involving possibly 10,000 wells. And, most recently, a group of landowners in  Bradford County, PA filed a suit alleging that Chesapeake and Williams Partners violated antitrust laws by conspired to restrain trade in the market for gas gathering services.

In February, Chesapeake filed a lawsuit against American Energy Partners alleging that ex CEO Aubrey McClendon stole confidential documents including maps of oil and gas prospects before leaving the company in 2013. Read more here

With more and more Texas lease holders scrutinizing their royalty statements the company may have more to worry about. Read more:  Mineral Owners Race the Clock in Texas

Chesapeake is active all across the Eagle Ford including Atascosa County, Dimmit County, Duval County, Frio County, Goliad County, LaSalle County, McMullen County, Washington County, Webb County and Zavala County.

 

© Nicolaselowe | Dreamstime.comWhite-tailed Deer Photo

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Halcón Announces 2014 Earnings http://eaglefordshale.com/news/halcon-announces-2014-earnings/ http://eaglefordshale.com/news/halcon-announces-2014-earnings/#respond Wed, 18 Mar 2015 13:00:12 +0000 http://eaglefordshale.com/?p=7499 Halcon Resource's Eagle Ford Acreage Map

Halcon Resource’s Eagle Ford Acreage Map | Click to Enlarge

Halcón Resources announced its 2014 results that included a net income for of $71.7 million and record production for its Eagle Ford operations.

Related: Halcón Resources Reduces 2015 Budget | Bakken Shale

Halcón operations in the Eagle Ford saw a production growth of 136% year-over-year. The company operated an average of three rigs in El Halcón during the fourth quarter, but currently have only one rig running. For 2015 El Halcón drilling program will focus on capturing leases and holding acreage. Foremost, the company will focus on ways to reduce completed well costs.

Other 2014 highlights include:

  • Q4 revenues of $239.5 million
  • Revenues for the full year 2014 totaled $1,148.3 million, an increase of 15% compared to the full year 2013
  • Q4 production was 46,076 barrels of oil equivalent per day (Boe/d) and 42,107 Boe/d, respectively
  • Production was comprised of 81% oil, 9% natural gas liquids (NGLs) and 10% natural gas for the quarter and 83% oil, 7% NGLs and 10% natural gas for the year.
  • Q4 operating costs per unit decreased by 23% compared to the same period of 2013
  • Total operating costs per unit for the full year were $24.14 per Boe, representing a decrease of 17%
Floyd C. Wilson, Chairman & CEO stated “We’ve reduced our 2015 drilling completion budget several times over the past few months. Service costs have come down significantly and continue to come down since the beginning of the year. Companywide, we currently have 26 operated wells being completed or waiting on completion. We’re operating three rigs, two in the Williston and one at El Halcón in East Texas.”

Halcón expects that completed well costs will decline by an additional 10% to 20% by midyear. In addition to across-the-board service cost reductions, they also plan to bring certain tasks in-house in order to reduce middlemen cost.

Read more at halconresources.com

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Mineral Owners Race the Clock in Texas http://eaglefordshale.com/news/mineral-owners-race-the-clock-in-texas/ http://eaglefordshale.com/news/mineral-owners-race-the-clock-in-texas/#respond Tue, 17 Mar 2015 14:51:02 +0000 http://eaglefordshale.com/?p=7488 Mineral Owners May be Losing Money

Mineral Owners May be Losing Money

The oil and gas boom has made many Texans rich since 2008, but some mineral owners may not be getting what they deserve. A four year statute of limitations to correct payments errors has many owners scrambling to make sure they are being treated fairly.

Read more about mineral rights in Texas

Texas has a provision that allows mineral owners to request an audit if they have a dispute with an operators, which might involve royalty payment discrepancies, lease issues, drilling provisions or surface obligations. During an audit, production information, check stubs and other data is scrutinized to make sure operators have held up to their commitments in the lease.

If an owner suspects a problem, they have a four year time limit (from the time of infraction) to request an audit. This may seem like plenty of time, but it is not always clear what operators are doing and sometimes a problem isn’t obvious until it is too late.

Texas case law 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.

“Readily accessible and publicly available information could have led the Rosses to discover that Shell was underpaying royalty before the limitations period expired,” the Texas Supreme Court ruled. “We hold that evidence conclusively established that Shell’s alleged fraud could have been discovered by the Rosses through the exercise of reasonable diligence.”

This increased responsibility for mineral owners can be overwhelming and, in some cases, impossible if they don’t have access to the proper information. Owners must be extra vigilant about all parts of the process, especially making sure they have a good lease that gives them the authority to inspect an operator’s books, accounts, reports or other accounting records.  

Connect with other mineral owners at MineralRightsForum.com

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Anadarko Reduces 2015 Spending by 30% http://eaglefordshale.com/news/anadarko-reduces-2015-spending-by-30/ http://eaglefordshale.com/news/anadarko-reduces-2015-spending-by-30/#respond Mon, 16 Mar 2015 16:02:06 +0000 http://eaglefordshale.com/?p=7483 Anadarko Eagle Ford Shale Map

Click to View Larger Version

Anadarko released its initial capital expectations for 2015 that includes a 30% spending cut from last year and plans to reduce its Eagle Ford rig count.

Read more about Anadarko in the Eagle Ford

During 2014, Anadarko increased total sales volumes by 16%, generated $150 million in free cash flow, grew its production base by 11%, and posted a reserve replacement ratio of 161%. The company also reported average sales volumes increased by more than 90,000 BOEs per day over 2013.

CEO, R.A. Walker commented, “Our operational performance in 2014 was outstanding and Anadarko’s employees delivered a tremendous year across the board. Our U.S. onshore operations were nothing short of incredible, led by the Wattenberg field and the Eagle Ford shale resulting in full year volumes growth of 16%.”

As Anadarko moves into 2015, they are making strategic and crucial decisions to remain strong. “In the current market,” said Walker, “we believe it is prudent to reduce capital investments and position the company for the future, rather than to pursue year-over-year growth.”

  • Anticipates approximately 5% oil sales-volume growth
  • Improved 2015 liquids product mix of approximately 50%
  • Net resources of more than 1 billion BOE in the Wolfcamp Shale
  • More than $700 million of asset monetizations to date in 2015
  • Reduce our short-cycle U.S. onshore rig activity by 40 percent
  • Defer approximately 125 onshore well completions.

Anadarko considers the Eagle Ford to be one of the strongest parts of its portfolio and reported making more than 20 percent rates of return in this activity in 2014. The company expects production to continue to rise in the Eagle Ford even exceeding the 250,000 BOE per day in 2014. Due to low oil prices, they will reduce running rigs by half. The company plans to drill another 200 wells but will defer the completion on many until prices stabilize.

Read more at anadarko.com

 

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