Eagle Ford Shale News

Eagle Ford Study Shows Significant Increase in Pollution Through 2018

Volatile Organic Compounds (VOCs) Could Rise as Much as 281% over 2012 levels - AACOG
Eagle Ford Satellite Image

Eagle Ford Satellite Image|Click to Enlarge

The Eagle Ford Shale’s economic impact has been felt across the state, particularly in South Texas, but a recent study shows that it may be at a cost to the environment.

In early April 2014, the Alamo Area Council of Governments (AACOG), released data correlating rising Eagle Ford production with an increase in air pollutants.

By 2018, AACOG predicts that unhealthy levels of ozone could have an impact on South Texas as volatile organic compounds (VOCs) rise as much as 281% over 2012 levels. Nitrogen Oxide (NOx) levels are also expected to rise by 2018, but not as drastically. Ground level ozone (i.e. smog) is produced when VOCs and NOx react to sunlight, especially during the summer.

The majority of NOemissions in 2012 were emitted by drilling rigs and well hydraulic pump engines (47%). By 2018, these sources are expected to account for only 9% of these emissions as engines are replaced with models that meet Tier 4 standards*. Compressors and mid-stream sources accounted for 39% of NOx emissions in 2012, but this number is expected to rise through 2018.

According to the EPA (Environmental Protection Agency), “the health effects associated with ozone exposure include respiratory health problems ranging from decreased lung function and aggravated asthma to increased emergency department visits, hospital admissions and premature death. The environmental effects associated with seasonal exposure to ground-level ozone include adverse effects on sensitive vegetation, forests, and ecosystems.”

The report mentioned the San Antonio area, which is the largest city in the Eagle Ford’s wake, has recorded ozone violations since August 2012 in excess of the EPA’s 2008 ozone standard. That puts the region on the brink of a potential non-attainment designation, which could result in federally mandated Clean Air Act sanctions. Beyond the San Antonio area, the study looked at 25-core Eagle Ford counties, including Karnes, Webb, DeWitt and Dimmit Counties. According to the report, all 25 Eagle Ford counties are currently in attainment of all air quality regulatory standards.

Read the full report 

*Tier 4 is comprised of two significant stages for different engine horsepower ratings. The first stage is a significant reduction of particulate matter (PM) and NO, and the second stage is a further but substantial reduction of NOx only emissions.

ConocoPhillips Raises Eagle Ford Reserve Estimates By 39% to 2.5 Billion BOE

250,000 boe/d in Eagle Ford Production Estimated by 2017
ConocoPhillips' Eagle Ford Geologic Map

ConocoPhillips’ Eagle Ford Geologic Map

ConocoPhillips increased its Eagle Ford reserve estimates in early April 2014 by 39% from 1.8 billion to 2.5 billion bbls of oil in place. Company officials say production is expected to exceed 250,000 boe/d in the Eagle Ford by 2017. That’s nearly 100,000 more BOE than the company’s target goal at the end of 2013.

Read more: Conoco Phillips’ Eagle Ford Production Up 58% to 141,000 boe/d in Q4 2013

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Eagle Ford Rig Count – 267 – Horizon Energy Signs Lease Option in Webb County, TX

Eagle Ford Rig Count Decreased by One Last Week
Webb County Eagle Ford Shale

Webb County, TX

The Eagle Ford Shale rig count decreased by one to 267 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, Horizon Energy Corporation announced in early April that it signed an option agreement for an oil and gas lease in Webb County, TX. The land consists of 1,340 acres located close to Mirando City.

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Houston Engineering Firm Opens Eagle Ford Branch Office in Webb County

Eagle Ford County Governments Are A Top Target for S&B Infrastructure, Ltd.'s Business Development Efforts
S&B Infrastructure Projects

S&B Infrastructure Projects|Click to Enlarge

Houston-based engineering firm S&B Infrastructure, Ltd. (S&BI) has opened a new branch office in Laredo, TX (Webb County) to serve the Eagle Ford Shale. The company plans on expanding engineering and construction phase management services throughout the play, focusing on infrastructure improvements for Eagle Ford counties. According to S&BI officials, county governments are a primary focus for business development.

 

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U.S. Energy Corp. Provides Operations Update For Buda Limestone Wells

U.S. Energy Corp. Has Non-Operated Interests in Dimmit and Zavala County Acreage
U.S. Energy Corp. Oil & Gas Project Area Map

U.S. Energy Corp. Oil & Gas Project Area Map | Click to Enlarge

This week, U.S Energy Corp. provided its operations update for several of it’s Zavala and Dimmit County wells targeting the Buda Limestone formation, which lies just underneath the Eagle Ford Shale. The Beeler #6H well, located in the company’s Booth-Tortuga acreage block, was completed in March 2014, and had a peak early 24-hour flow back rate of 1,185 boe/d, with a 91% oil yield. The company has a 30% working interest and a 22.5% net revenue interest in 12,457 acres of the Booth-Tortuga acreage block. Contango Oil & Gas Company is the operator.

U.S. Energy Corp. also participates with U.S. Enercorp in approximately 4,243 gross (636 net) acres in the Big Wells acreage block in Dimmit County, TX. The leasehold is contiguous to the southwestern portion of the Booth-Tortuga acreage block.

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Abraxas Petroleum Operations Update Reveals Strong Initial Production (IP) Rate for McMullen County Well

In its' First 30-days, the Dutch 2H Had Average Production of 1,093 boe/d
Abraxas Petroleum, Cave Prospect Map

Abraxas Petroleum, Cave Prospect Map | Click to Enlarge

San Antonio-based Abraxas Petroleum Corp. had good initial production on one of its’ Cave Prospect wells, located in McMullen County, in the first-quarter of the year. In its’ first 30-days, the Dutch 2H had average production of 1,093 boe/d.

According to company officials, Abraxas will shut-in the well for 60-days to drill an off-set well, when drilling is completed on its’ Eagle Eyes 1H well, located in the company’s Jourdanton prospect, in Atascosa County.

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Horizon Energy Corporation Signs Lease Option Agreement for Eagle Ford Acreage

Land Consists of 1,340 Acres in Webb County
Webb County Eagle Ford Shale

Webb County, TX

Horizon Energy Corporation announced in early April that it signed an option agreement for an oil and gas lease in Webb County, TX. The land consists of 1,340 acres located close to Mirando City.

Webb County is in the dry gas window of the Eagle Ford Shale, and also produces oil and gas from the Lobo and Wilcox formations. Horizon, formerly Solar America Corp., did not divulge any of the agreement’s terms.

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Eagle Ford Rig Count – 268 – Warwick Energy Buys R/C Sugarkane

Eagle Ford Rig Count Stays Flat This Week at 268
ConocoPhillips Eagle Ford Map

ConocoPhillips Eagle Ford Map | Click to Enlarge

The Eagle Ford Shale rig count remained flat at 268 rigs running across our coverage area at the end of last week.

In recent Eagle Ford news, Oklahoma City-based Warwick Energy entered an agreement in early April to acquire R/C Sugarkane LLC, an Eagle Ford upstream oil and gas company. Warwick is buying R/C Sugarkane from Riverstone Holdings, LLC, a New York-based private equity firm, for an undisclosed amount. The deal includes RC Sugarkane’s non-operated working interests in 6,000 net Eagle Ford acres, with 3,000 boe/d in net production.

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The Lesser Praire Chicken’s Impact on Texas Oil

More Than One-Hundred Species in Texas Are Proposed for Listing in The Next Three Years - Craddick
Lesser Praire Chicken

Lesser Praire Chicken | Click to Enlarge

In late March 2014, the U.S. Fish & Wildlife Service (USFW) listed the lesser praire chicken as threatened under the endangered species act (ESA), much to the dismay of the oil and gas industry. In Texas, the species is concentrated in the western portion of the state and in the Panhandle.

The lesser praire chicken’s new designation will impact a five-state area, and according to USFW, 3-million acres of land have already been enrolled in targeted conservation plans. Although the species’ new designation doesn’t take control out of the states’ hands completely, it does shift the balance of power to the federal government. Under special Rule 4(d) of the ESA, states’ will be allowed to continue managing conservation efforts for the species and avoid further regulation of activities such as oil and gas development and utility line maintenance.

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Devon Energy Sells Canadian Assets to Pay Down Eagle Ford Debt

Officials Say Devon Will Divest Non-Core US Assets by The End of the Year
Devon Energy Core & Emerging Asset Map

Devon Energy Core & Emerging Asset Map

Devon Energy completed the sale of its Canadian conventional assets to Canadian Natural Resources for $2.7 billion after taxes.

The company will use the money to pay down debt acquired from a $6 billion purchase of GeoSouthern’s Eagle Ford assets, which was completed on February 28th.

Read more: Devon Acquires Eagle Ford Assets from GeoSouthern for $6 Billion

Devon considers its’ Eagle Ford Shale acreage as core to its portfolio, and plans on divesting its non-core US assets by the end of the year. Devon’s other US core areas are in the Barnett Shale, Anadarko Basin and Permian Basin. The Mississippian-Woodford and the Powder River and Wind River Basins in the Rockies are emerging assets in the company’s portfolio.

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