Comstock Resources Focused on the Eagle Ford in 2014 – Almost $400 Million Planned

Zero Natural Gas Wells Will be Drilled by Comstock in 2014
Comstock Eagle Ford Drilling Plans 2013

Comstock Eagle Ford Drilling Plans 2013 | Click to Enlarge

Comstock Resources will spend $394 million of the company’s $450 million 2014 budget in the Eagle Ford.

The company will spend $264 million drilling 59 gross (40.2 net) wells in the South Texas Eagle Ford, $80 million completing wells in the South Texas area, and $50 million to drill 10 gross (5.6 net) East Texas Eagle Ford wells (Burleson County) for a total of $394 million.

Read more: Comstock – Ursa Resources Reach Eagle Ford Deal Worth $66.5 Millon [Read more…]

CHK Plans For New Leadership – McClendon Retiring

Chesapeake Eagle Ford Rig Map

Chesapeake Rig Map | Click to Enlarge

Chesapeake’s CEO, Aubrey McClendon, has announced plans to retire as of April 2013. McClendon founded Chesapeake in 1989 and, as a landman, was well suited to oversee the company’s shale land grab over the past decade.

Chesapeake has a market cap of more than $13 billion, with underlying assets that have significant growth potential.

Mr. McClendon was a fairly controversial figure in the investing world as he led the most aggressive leasing strategy ever implemented. The company has leased millions of acres and in turn flipped a portion of the assets to other companies. The deals funded the company’s shale leasing spree.

McClendon came under scrutiny multiple times throughout the past several years as his position magnified. The company’s “founder well incentive”, lucrative pay packages, and disagreements with a new board of directors eventually led to his demise. [Read more…]

TXOGA’s Response to the KENS Story Regarding County Lawsuit Threats

TXOGA has not threatened to sue any county regarding transportation fees

The Texas Oil & Gas Association (TXOGA) issued an official response to a story reported by KENS Channel 5. You can watch the report in the article Eagle Ford Oil Companies Fight Back – State Revenues Should Be Shared. KENS 5 reported that oil companies were threatening counties with lawsuits and the organization released this response:

Texas Oil & Gas Association Memo Explained Current Law on Counties’ Authority and Roads — TXOGA Did Not Threaten Lawsuit and Believes Current Law May Need to Change so Counties Receive Necessary Funding

The following can be attributed to Deb Hastings, executive vice president of the Texas Oil & Gas Association (TXOGA): [Read more…]

Eagle Ford Oil Companies Fight Back – The State Should Share Revenues

Very little of the state's revenue from oil & gas operations is allocated to help maintain infrastructure

Eagle Ford oil companies are fighting back against local impact fees. Operators already pay multiple taxes and permitting fees. The problem is not much of that revenue is shared with the counties and counties don’t have authority to enforce one off fees. As roads continue to deteriorate, we’ll likely see both oil companies and local constituents lobbying to have more money allocated to improvements in South Texas. The video below highlights this debate as it evolves in Karnes County.

Truck Driving Accidents in South Texas – Fatigue

The Oil and Gas Industry has seen a tremendous increase in productivity over the last three years and a subsequent increase in trucking driving hiring and activity. Companies have hired thousands of new employees and have yet to slow down. Truck drivers are keeping highways busy from Laredo and Carrizo Springs all the way to San Antonio, Corpus Christi and Houston. Along with rapid production and workforce growth, there has been an increase in all types of accidents and work injuries, many fatigue-related.

Work Injuries and Accidents in South Texas are often Fatigue Related

As the oil and gas industry gains momentum, there are an increasing number of industrial trucks and 18 wheelers on the highways. Truck drivers suffering from sleep deprivation are a well-known danger on the road and a risk for an increased number of injuries and accidents. According to the Center for Disease Control and Prevention, insufficient sleep is a public health epidemic.

“Sleep is increasingly recognized as important to public health, with sleep insufficiency linked to motor vehicle crashes, industrial disasters, and medical and other occupational errors. Unintentionally falling asleep, nodding off while driving, and having difficulty performing daily tasks because of sleepiness all may contribute to these hazardous outcomes,” states a CDC article entitled Insufficient Sleep Is a Public Health Epidemic. [Read more…]

Eureka Energy’s Board is Rejecting Aurora Oil & Gas’ Offer

Eureka Values Sugarloaf at More Than $87,000 Per Acre

Sugarloaf Map | Click to Enlarge

Eureka Energy is advising shareholders not to accept the US$110 million offer that was made for the company by Aurora Oil & Gas on Monday.

Eureka asserts the offer is lower than their valuation of the company’s flagship asset in the Sugarloaf Field and does not attribute any value to its Pan De Azucar/Black Jack Springs, or Bioche assets.

Eureka owns a 6.25% working interest in 24,743 gross (1,521 net) acres operated by Marathon Oil in Karnes County. In U.S. dollars, the offer is for $0.46 per share and Eureka believes the Sugarloaf field alone is worth US$0.56 per share or US$132.7 million.

If I’m doing the math correctly, that’s $132,700,000/1,521 net acres = a valuation of $87,245.23/acre.

Read the entire recommendation at