Eagle Ford Shale News

Cabot’s Eagle Ford Production Up 76% Year Over Year

10 Wells Placed on Production in Q2
Cabot Eagle Ford & Pearsall Shale Map

Cabot Eagle Ford & Pearsall Shale Map | Click to Enlarge

Cabot Oil & Gas Corp. net production in the Eagle Ford during the second quarter of 2014 was 10,308 boe/d, an increase of 76% year over year. This included 9,784 bbl of liquids per day, an increase of 83% compared to the same time frame.

Read more: Cabot Oil & Gas to Expand Eagle Ford Drilling Program

During the second quarter of 2014, Cabot placed 10 wells on production that have produced for at least 30 days. These wells had an average 30-day production rate of 840 boe/d per well, with a 92% oil cut from an average lateral length of 6,729 feet. Currently, Cabot has a two-rig program in the Eagle Ford.

Cabot’s Q2 Portfolio Wide Production

Across the company’s portfolio, which includes ~200,000 net acres in the Marcellus Shale, equivalent production in the second quarter of 2014 was 127.6 Bcfe, consisting of 121.8 billion cubic feet (Bcf) of natural gas and 961,000 bbl of liquids.

“Our total liquids volumes increased 40 percent sequentially—with crude oil and condensate volumes increasing 44 percent—due to strong well performance from new Eagle Ford wells that were placed on production during the quarter,” said Cabot CEO Dan Dinges.
 

Cabot’s Eagle Ford Position Remains the Same in Q2

In its first quarter update, Cabot indicated that it was actively pursuing additional acreage to increase its position in the play, but no acquisitions were confirmed in the company’s second quarter update.

During the first quarter, Cabot secured ~4,000 additional net acres, and currently has ~66,000 net acre across the play, with properties principally located in Atascosa, Frio, La Salle and Zavala Counties, Texas. We’ll keep you posted if Cabot confirms any additional Eagle Ford acreage acquisitions in the coming months.

Read more at cabotog.com

New Campaign to Curb Eagle Ford Traffic Accidents

TxDOT: 3,450 Serious Traffic Accidents Recorded in 2013
Tanker Truck on the Highway

Click to Enlarge

The Eagle Ford Shale has brought many good things to South Texas, but an increase in serious and sometimes fatal traffic accidents hasn’t been one of them.

Last year, the Texas Department of Transportation (TxDOT) recorded 3,450 serious traffic crashes in the Eagle Ford Shale region, which was a 7% increase over 2012. 238 deaths resulted from these accidents. According to law enforcement, the leading causes of crashes in the region were failure to control speed and driver inattention.

TxDOT’s Answer to the Problem

In an effort to save lives and minimize the number of crashes, TxDOT will place over-sized traffic safety signs in the Eagle Ford and other energy producing areas throughout the state over the course of the year.

“oil and gas activity has created unprecedented volumes of traffic in many parts of our state,” said TxDOT Executive Director Joe Weber. “It’s more important than ever for drivers to give their full attention to the road. They should also obey traffic laws and slow down when traveling through energy-producing communities.”

TxDOT’s $1.2-million campaign is called “Be Safe. Drive Smart.”  According to TxDOT, 30 large outdoor signs will be placed around the Eagle Ford Shale region for a at least one month in the summer and one month in the winter.  Here’s a look at what some of the signs will say:

  • Give Trucks Space
  • Drive Now
  • Text Later
  • Buckle Up Every Ride
  • Really, Stop Means Stop
  • Drive Friendly
  • Pass with Care
  • Not So Fast
  • Drink, Drive, Go to Jail
  • Give Us a Brake

In late July, TxDOT will install 9 giant oversized road signs in Karnes County, with similar messages. Signs will also be present at gas stations in the Eagle Ford region.

What Else is Being Done?

In addition to signs, TxDOT says it conducts training and safety activities throughout the industry. TxDOT and the Department of Transportation and Public Safety are also working with oil & gas companies to provide motorists and employees with driving tips and other important safety information, a TxDOT spokesman notes.

Read more at txdot.gov

ZaZa Energy Gathers Funds for Eaglebine Development

$7.5 Million Stock Deal
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

TPA: Pipeline Industry Has Positive Economic Impact on Texas

Eagle Ford Midstream Activity Going Strong in 2014
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:

Eagle Ford Shale Rig Count Decreases by Six to 265

Penn Virginia Corp. Acquires Eagle Ford Acreage for $45-Million
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.

Swift Energy – PT Saka Energi Close Eagle Ford JV Deal

Saka Paid Swift $147-Million at Closing
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

Riches from the Eagle Ford Boom – Video

Who's Benefiting from Oil Production and What You Can Do to Cash In

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.

Cardinal Energy Group Acquires 2,800 Net Eagle Ford Acres

Acreage Located in Gonzales and Wilson Counties
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

Penn Virginia Acquires Eagle Ford Acreage – $45 Million

Company Position Increases to 101,800 EFS Acres
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

Eagle Ford Shale Rig Count Decreases by One to 271

Bloomberg: Talisman - Statoil JV Sale Falls Through
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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