Eagle Ford Shale News

Eagle Ford Counties #1 in Oil & Gas

RRC: Karnes and Webb Top Lists for Production
eagle Ford Shale MapLatest stats show Eagle Ford Shale counties still rank first in oil and gas production.

 

 

Average production for oil and gas across Texas is down since this time last year, but Eagle Ford counties remain top producers, according to the latest statistics from the Texas Railroad Commission.

 

The Commission reported that in the last 12 months, total Texas reported production was 995 million barrels of crude oil and 8.1 trillion cubic feet of total gas. Total production for September 2016 is 71,404,018 barrels of crude oil and 561,242,466 mcf of total gas from oil and gas wells. In September 2015, production was 87,680,526 barrels and 724,241,890 mcf of gas.

 

Eagle Ford Production
CRUDE OIL: Five Eagle Ford counties ranked in the top 10 highest producing Texas counties.

#1-Karnes County continues to be the top oil producing county in Texas, pumping 5,095,593 barrels in September

#5- LaSalle produced 3,422,097 barrels

#6- Dewitt produced3,246,232 barrels

#8-McMullen produced 3,021,614

#9-Gonzales produced 2,949,145

NATURAL GAS: Five Eagle Ford counties ranked in the top 10 highest producing Texas counties.

#1 Webb produced 55,387,471 mcf

#3 Dimmit produced 21,963,351 mcf

#4 Karnes produced 19,877,341 mcf

#7 Dewit produced 17,928,345 mcf

#8 LaSalle produced 17,073,641 mcf

These preliminary figures are based on production volumes reported by operators and will be updated as late and corrected production reports are received.

Read more at rrc.tx.gov

 

Halcón Waiting for Crude Prices to Improve

Company Eliminates $1.8 Billion Debt in Bankruptcy
Halcón Resources Q3

Halcón Resources Reports 2016 Q3

Halcón Resources is still waiting for crude prices to improve before increasing Eagle Ford activity.

Related: Penn Virginia & Halcón Files Chapter 11

Halcón Resources announced its financial and operational report for the third quarter 2016. Executives commented that their primary focus for new activity is in the Williston Basin and Eagle Ford, but that they are also seeking other opportunities around the country.

This report comes just a few weeks after the company emerged from bankruptcy, where it was able to eliminate approximately $1.8 billion in debt.

For its Eagle Ford operations, Halcón reported production averaging 6,693 Boe/d. The company did not run any operated rigs in the region and no wells were put online. The company anticipates adding a rig back to the Eagle Ford area when oil prices improve.

“In our East Texas Eagle Ford area, El Halcón we’re not running a rig today. We have recently been conversing and watching what other operators that are running rigs have been doing. There’s a fairly – I won’t say new but there’s a newish application of proven frac technology being used in the area. A higher profit concentrations in the 2,500 to 3,500 pound per linear foot range and slickwater fracs with only 20% or 30% of gel. Some of these results are very promising and we expect to actually change our outlook for this area dramatically in light of what we’re seeing so far.”-CEO, Fred Wilson

Halcón currently has working interests in approximately 80,000 net acres prospective for the Eagle Ford formation in East Texas, approximately 82% of which is HBP.  The Company currently operates 112 El Halcón wells.

Q3 Highlights include:

  • Production averaged 34,185 barrels of oil equivalent per day (Boe/d)
  • Production was comprised of 76% oil, 13% natural gas liquids and 11% natural gas
  • Shut-in approximately 7,000 Boe/d of net production during the third quarter due to low commodity prices.  This production was brought back online in early October 2016.
  • Total revenues of $102.5 million
  • Total operating costs per unit were $24.89 per Boe

Read more at halconresources.com

Eagle Ford Oil Heads to South Korea

Company to Unload 2 Million Barrels by End of Year
Eagle Ford Oil Heads to South Korea

Eagle Ford Oil Heads to South Korea

South Korea purchases Eagle Ford oil for the first time in over 40 years.

Related: More Eagle Ford LNG Headed Abroad

GS Caltex, South Korea’s second-biggest refiner, has announced the purchase of another 1 million barrels of U.S. crude from the Eagle Ford, according to Platt’s global division. The company has already unloaded another 1 million barrels in Yeosu, South Jeolla Province, during November.

Eagle Ford crude is a hot export commodity because it contains less sulfur content than ‘heavier’ crudes. Caltex will use the light sweet crude for blending with their heavier oil.

 “GS Caltex is the first domestic refiner importing crude from the U.S. mainland since the nation lifted its long-standing export ban,” a company spokesman said. “It has become more price-competitive to purchase crude oil from the United States because of low West Texas Intermediate (WTI) prices and falling shipping charges. We will continue to explore opportunities to import more from the United States and further diversify our import countries.”   

In April, the U.S. senate passed the Energy Policy and Modernization Act designed to increase U.S. exports of liquefied natural gas (LNG). This is South Korea’s first purchase of US crude since Washington lifted a 40-year restriction on exports late last year.

Eagle Ford midstream companies are looking to prosper as natural gas exports overtake imports over the next 16 months. The state is currently building a massive LNG export terminal along the Gulf Coast.

In June, the U.S. Department of Energy authorized Flint Hills Resources to export liquefied natural gas (LNG) to countries that do not hold a free trade agreement (non-FTA) with the U.S. The order allows Flint to export LNG 3.62 billion cubic feet of natural gas per year over the next 20 years.

Read more at platts.com

 

Swift Shifts Assets to be Bigger Eagle Ford Player

Company Gains $40 Million from Sale of Louisiana Property
Swift Energy  Eagle Ford

Swift Energy Focuses on Eagle Ford

Swift Energy Company plans to sell key operations to focus on the Eagle Ford.

Related: Swift Energy Files Chapter 11

Swift Energy has announced it has entered into an agreement to sell its Lake Washington field in South East Louisiana. The company wants to become a more focused Eagle Ford player and has identified over 400 high-quality drilling locations in the region.

Sale details include:

  • Closing expected in early December 2016
  • Cash consideration of $40.0 million upon closing
  • Approximately 14,000 net acres in Plaquemines Parish, includes 23 producing wells
  • Net sales of approximately 1,160 barrels of oil equivalent per day (97% oil)
“Swift has made several strategic moves this year to actively manage our portfolio and transform the company into a premier Eagle Ford producer, and today’s announcement is consistent with that strategy. We’ve had a tremendous amount of success with the development of our assets in South Texas, and this transaction allows us to focus exclusively on our very best rate of return projects.” -Interim Chief Executive Officer Bob Banks

In Apirl, Swift emerged from bankruptcy and then announced the retirement of the company’s CEO and CFO in September.

Read more at swiftenergy.com

Earthstone Q3: Six New Eagle Ford Wells

Company Pushes to Complete 12 Eagle Ford Wells
Earthstone's Eagle Ford activity

Earthstone Energy Reports 2016 Q3

Earthstone Energy announces third quarter results including initiating the completion of its 12-well Eagle Ford inventory.

Related: Earthstone Energy Looks to Resume Eagle Ford Activity

In May, Earthstone Energy allotted $4.0 million to spend on the Eagle Ford. Over the last three months, the company utilized that capitol to initiate the completion of 12 (5.3 net) Eagle Ford wells, which should be complete by the end of 2016. The company also brought four wells on-line in Karnes County and two wells within Fayette County.

Earthstone executives commented that they plan to re-establish our Eagle Ford drilling program early next year in southwestern Gonzales County that has the potential for 30 gross wells.

Frank A. Lodzinski, President and Chief Executive Officer said “Our accomplishments in the first half of 2016 have positioned us nicely to continue our growth in the second half of 2016. We are completing our 12-well Eagle Ford inventory and participating in a Wolfcamp well in Howard County which will lead to production growth in the fourth quarter of 2016 and first quarter of 2017. In addition, pending commodity prices, we anticipate resuming our operated Eagle Ford drilling program in the first quarter of 2017 in southwestern Gonzales County.”

Third Quarter 2016 Summary

  • Average daily production of 3,979 Boepd
  • Total revenue of $11.1 million, which includes the effects of realized hedges
  • Net loss of $3.9 million
  • Adjusted EBITDAX(1) of $2.8 million

Read more at earthstoneenergy.com

Devon Resumes Eagle Ford Completions

Company Has Four Frac Crews and Lowered DUC Inventory
Devon Energy Q3

Devon Energy Reports 2016 Q3

Devon Energy resumes Eagle Ford completion activity during third quarter 2016.

Related: Eagle Ford Brings Highest Margins

Devon Energy reported third quarter results earlier this month, highlighting outstanding performance for their operations and financial picture. The company’s development programs generated the best quarterly drill-bit results in Devon’s 45 year history.

Eagle Ford Operations

The company’s Eagle Ford operations has a net production of 61,000 Boe per day in the third quarter, with liquids accounting for 77% of Eagle Ford volumes. Completion activity in the Eagle Ford resumed in Q3 and 7 new wells were tied-in, with 30-day rates averaging a quarterly record of 2,700 Boe per day per well. Devon’s Eagle Ford operations continued to achieve significant cost savings during the quarter. LOE totaled $27 million in Q3, an improvement of >50% compared to peak costs in 2015.

Dave Hager, president and CEO commented, “we’re real pleased with where we are in the Eagle Ford. And if you go back and look at the pace of our activity, it’s greatly slowed down in 2016 versus 2014 and early 2015. In fact, we were bringing on about 70 to 75 wells per quarter in that timeframe. In Q1 of this year, we were down to 22 wells brought on in the quarter. Second quarter there was only five, third quarter was only five. So we’ve seen the rate drop off there, but it is now stabilized, and we have four frac crews in the field that are lowering our DUC inventory down.”

Other Q2 highlights include:

  • Decreased lease operating expenses 37 percent from peak rates
  • Expected cost savings to reach $1 billion in 2016
  • Completed $3.2 billion asset divestiture program
  • Repurchased $1.2 billion of debt
  • Raising Meramec and Woodford type curves
  • Increased STACK production 38 percent year over year
  • Accelerating Delaware Basin rig activity
  • Wolfcamp drilling to ramp up in 2017
  • Jackfish complex production exceeds nameplate capacity
  • Total production averaged 577,000 oil-equivalent barrels (Boe) per day

Read more at devonenergy.com

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