Eagle Ford Shale News

Earthstone Energy Looks to Resume Eagle Ford Activity

Executives Express Optimism as Crude Prices Increase
Earthstone Energy Earnings Report

Earthstone Energy First Quarter Earnings

Earthstone Energy executives express optimism that they can increase their Eagle Ford activity this summer as crude prices continue to move higher.

Related: Earthstone Reports ‘Decent’ Q4

The Woodlands-based company announced a challenging first quarter that included a 7% decrease in production. The company made crucial due to decisions to defer certain capital expenditures throughout the quarter due to weaknesses brought on by crude prices.

Robert Anderson – Executive Vice President, commented, “This decrease was due to lack of completion activity on the 12 Eagle Ford wells that we have drilled, but are waiting on completion along with natural declines on well drilled in 2015 and the fact that we chose to allow flowing wells to continue to produce at lower rates as a result of postponing the capital expenditures for installing artificial lift on those flowing wells.”

2016 Q1 highlights:

  • Average daily production of 3,576 Boepd
  • Total revenue of $8.9 million, which includes the effects of realized hedges
  • Lease operating expense decreased 30% relative to the first quarter of 2015
  • Adjusted EBITDAX(1) of $1.9 million

Read more about Earthstone in the Eagle Ford

Eagle Ford Operations

Approximately 60% of Earthstone’s operated Eagle Ford acreage is held by production. The Company has 12 gross Eagle Ford locations waiting on completion from four units.

For the rest of 2016, the company has allotted $4.0 million to spend on the Eagle Ford.

“With price improvement, we believe we can ramp up production with our frac inventory while re-establishing drilling activities. We will likely complete our four-well Boggs Unit in Karnes County this summer.”

Last week, Earthstone announced it had completed their acquisition of Lynden Energy Corp anticipating production of approximately 4,900 barrels of oil equivalent per day.

Read more at EarthstoneEnergy.com

Penn Virginia Corp. Files Chapter 11

Eagle Ford Operator Looking to Shed $1 Billion Debt
Penn Virginia Files for Chapter 11

Penn Virginia Files for Chapter 11

Eagle Ford producer, Penn Virginia Corporation has filed for chapter 11 protection.

Related: More Oil & Gas Bankruptcies Likely

On May 12th, Penn Virginia Corporation announced that it had filed voluntary petitions for relief under chapter 11 in order to reduce the Company’s long-term debt by more than $1 billion. As part of the filing, the company asked the Court to allow them to continue its ongoing employee compensation and benefit programs.

“Like many other exploration and production companies, Penn Virginia has been significantly affected by the recent and continued dramatic decline in oil and natural gas prices.  We believe using the chapter 11 process is the most efficient way to achieve our financial objectives and deleverage the Company’s balance sheet,” said CEO, Mr. Cloues.

Eagle Ford Operations

Penn Virginia’s primary focus is on its operations in the Eagle Ford Shale holding approximately 100,000 net acres in Gonzales and Lavaca Counties. The company did not release a 2015 Q4 statement, but their website states that they planned to utilize one operated drilling rig in the Eagle Ford Shale for the remainder of 2016.

Join the Discussion: How Will Oil Company Bankruptcy Affect Me As A Royalty Owner

In January, Penn Virginia suspended trading on the NYSE and began delisting procedures.

Oil and gas bankruptcies continue to rise as the fallout of low crude prices takes its toll. Halcón Resources Corp. announced today that they have reached an agreement with stakeholders to restructure its balance sheet and eliminating approximately $1.8 billion of debt. Other companies to file bankruptcy this year include Linn Energy, Goodrich Petroleum and Sabine Oil & Gas.

Read more at PennVirginia.com


Oilfield Helping Hands Serving Eagle Ford

Financial Assistance for South Texas Families
Help for Eagle Ford Families

Help for Eagle Ford Families

A national non-profit that helps oilfield families in critical need of financial assistance has opened a new chapter that will serve families in the Eagle Ford.

Related: Texas Economic Index Declines

Oilfield Helping Hands was established in 2003 and has chapters serving the Rocky Mountain region, Oklahoma, Louisiana, Houston, the Permian and now, South Texas. The group has raised approximately $3.4 million in to assist individuals and families in the oilfield community who are in financial crisis,

“As the president of the new South Texas Chapter it is with pride that my team and I get to join this amazing organization,” said President Stephanie Blankenship. “During this economic downturn we feel privileged at the prospect of being able to give back to a community that supports many of our lives and families.”

The South Texas chapter of OHH serves the following Eagle Ford counties: Karnes, DeWitt, Zavala, La Salle, Atascosa, McMullen, Dimmit, Bee, Frio, Goliad, Webb, Wilson, Lavaca, Gonzales, Maverick, Live Oak and Duval

The serviecs the OHH provide are crucial during the downtuen, where around 72,000 Texas workers have lost jobs in 2015. It is estimated that another 40,000 could lose jobs this year.

The chapter is based in San Antonio and is just starting to organize its 2016 meetings and fundraising events. For information about joining and/or supporting the OHH South Texas Chapter, contact Blankenship at SouthTexasOHH@Outlook.com

Learn more at oilfieldhelpinghands.org

Carrizo to Increase Eagle Ford Activity

9% Production Growth Target Planned
Carrizo Earnings Report

Carrizo Oil & Gas: First Quarter Earnings

Carrizo credited the company’s Eagle Ford Shale assets for their strong first quarter performance and announces plans to increase activity in the region.

Related: Carrizo Focuses on Eagle Ford

In a press release last week, Carrizo Oil & Gas executives reported 2016 first quarter results that included an adjusted net income of $9.2 million. The company also reported record production of 42,025 Boe/d, 21% above the first quarter of 2015.

Sylvester P. Johnson, CEO, commented “We remain on track to achieve (our) goals. Our 2016 drilling and completion capital expenditure guidance of $270 million to $290 million is unchanged, but due to further efficiencies and cost savings, we’ve been able to increase our planned activity levels in the Eagle Ford and Delaware Basin during the year.”

Eagle Ford Operations

Carrizo spent approximately 85% of its budget in the Eagle Ford and acquired 4,000 net acres in the region. For the remainder of 2016, the company plans to increase crude oil production growth target to 9%.

“Our focus on cost reductions and efficiency gains continued to bear fruit during the quarter, as we were able to lower our expected well costs in the Eagle Ford to $4.1 million from $4.6 million per well,” said Johnson.

Other first quarter Eagle Ford highlights:

  • Expects to drill approximately 57 gross (53 net) operated wells and complete 55 gross (52 net) operated wells in the play during 2016
  • Drilled 18 gross (17.0 net) operated wells
  • Completed 14 gross (12.5 net) wells
  • Crude oil production from the play rose to approximately 22,800 Bbls/d for the quarter, up 2% versus the prior quarter
  • 33 gross (31.8 net) operated Eagle Ford wells waiting on completion
  • Operating two rigs
  • Reduction of well costs for a 6,100 ft. lateral well are currently expected to average approximately $4.1 million, down from $4.6 million previously.

Read more at Carrizo.com

Baytex Energy: Big Results in Eagle Ford

Q1 Production up 2%
Baytex Energy Earnings Report

Baytex Energy’s First Quarter Earnings

Baytex Energy reports strong first quarter thanks to their Eagle Ford operations.

Related: Baytex Energy to Focus on Eagle Ford in 2016

During a first quarter earnings call last week, Baytex Energy announced they have done well in the middle of the current challenges brought on by this low oil price environment.

Baytex focused its Q1 operations on their Eagle Ford operations, spending 96% of its exploration and development budget in the South Texas region. Our operating results in the Eagle Ford were strong during the quarter with production up 2% over Q4/2015 and well costs continuing to decline.

James Bowzer, President and CEO, commented:  “To generate the highest netback and rate of return, we focused our capital expenditures on the Eagle Ford. (…) Importantly, we continue to direct the vast majority of our exploration and development dollars to the Eagle Ford which generates the highest rates return and the highest netbacks from our portfolio.

Eagle Ford highlights include:

  • Production averaging 41,067 boe/d (77% liquids), a 2% increase from Q4/2015
  • Capital expenditures totaled $76.8 million, 96% of total E&D budget
  • Approximately six drilling rigs and one frac crew working
  • Drilling of 44 (12.5 net) wells and commenced production from 34 (10.2 net) wells. Of the 34 wells that commenced production during the first quarter, 19 wells have been producing for more than 30 days and have established an average 30-day initial production rate of approximately 1,300 boe/d.
  • Achieved an approximate 32% reduction in well costs with wells now being drilled, completed and equipped for approximately US$5.6 million, compared to US$8.2 million in 2014.
  • As of March 31, 2016, there were 36 (10.7 net) wells waiting on completion

Read more at Baytex Energy.com

Eagle Ford Rig Count Dips Again

181 Rigs Running Across Texas
Eagle Ford Rig Counts

Eagle Ford Rigs Counts Drop

The Eagle Ford Shale rig count fell again this week, ending with 34 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Encana announced first quarter results that highlighted dramatic cost reductions, operational innovation and Eagle Ford flexibility.

Read more:Encana’s Reports Strong First Quarter

A total of 405 oil and gas rigs were running across the United States this week, down nine from last week. 87 were targeting natural gas (one more than the previous week) and 318 were targeting oil in the U.S. (10 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 181 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 in the Eagle Ford remained at six this week as natural gas prices remaining flat at $2.10/mmbtu.

The Eagle Ford rigs targeting oil fell this week to 29 with WTI oil prices settling in at $46.21, a $1.59 increase this week. A total of 31 rigs are drilling horizontal wells, zero are drilling directional wells, and three are vertical rigs.

Karnes County leads development in the region with 10 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
FRIO 2 2 LEE 0 0

Eagle Ford Shale News

Encana’s Reports Strong First Quarter

Noble Energy Reports Solid First Quarter

Sanchez Reports First Quarter Production Increase

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