Heard at DUG Eagle Ford 2012

Developing Unconventional Gas Eagle Ford Conference is a hit again in 2012
DUG Eagle Ford 2012 Exhibit Floor Photo

DUG Eagle Ford Exhibit Floor | Click to Enlarge

DUG Eagle Ford 2012 looks to be the success it was just a year ago. In the first day of hte conference, operators touted the play’s ultimate potential and detailed just how well their assets are performing.

Here are a few highlights from the presentations:

  • The Eagle Ford was a gas play until 2011, but as natural gas prices fell, operators shifted to oil and condensate
  • For Marathon Oil’s water needs, only 3% is potable water. Polymer gels lower the amount of water needed
  • Marathon plans to sell 96,000 acres of its 300,000 acre position. The company will focus on a core area of 200,000 acres
  • Eagle Ford royalty rates peaked at a rate of 22% and have come back down to 20%
  • Drilling Info says estimated EURs across the Eagle Ford point to 500,000 boe
  • The number of frac stages used in the Eagle Ford is up 20% in 2012, costs are down 25% = net gain for the industry
  • Pioneer said petrochemical plants are paying WTI plus for oil and refineries are paying WTI minus
  • EP Energy spends $8-8.4 million on each Eagle Ford well and expects to recover 500,000-600,000 boe
  • 4,000 plus wells have been drilled in the play to date
  • Pioneer is using white sand in completions everywhere it can. 50% + of its wells in 2012.
  • Pioneer’s restricted choke program (12/64ths) is proving successful. Wells profiles are outperforming after six months
  • Real time micro-seismic is the Holy Grail for the industry right now. It would allow operators to quickly judge the effectiveness of a frack stage.
  • Operators are drilling between 15 and 20 wells per rig per year

If you like news updates in real time, you can Follow EagleFordShale.com on Twitter


The following two tabs change content below.
R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

Add a Comment