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
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