EP Energy Expands Operations

Company Reports Strong Q1 in Eagle Ford
EP Energy Expands in Texas

EP Energy Expands in Texas

Houston -based EP Energy plans to expand its presence in the Eagle Ford by adding new training, office and warehouse space to its operations in Dilley.

Related: Penn Virginia Invests in the Eagle Ford

EP Energy currently holds over 91,000 acres in the Eagle Ford with activity in La Salle and Atascosa counties. In addition to adding 8,300 square feet of work, the $1.3 million construction project will likely add new jobs to the area.

The company reported strong first quarter results for its Eagle Ford operations and touted improved well performance and significantly lowering well costs. Additionally, about two-thirds of the Q1 capital was allocated to the Eagle Ford program.

Clay Carrell – COO, said “We also continue to see execution improvements. We have reduced our average drilling cycle times from 10 days to 9 days and this is in an asset that we have been drilling in for over five years. Our 40-acre development is driving cost efficiencies, due to the use of three and four well pads. Importantly this development is improving our reserve recoveries per section which results in improved returns from our capital program.”

Q1 Highlights for Eagle Ford:

  • Completed 38 wells across its Eagle Ford program
  • Grew oil production to 38.0 MBbls/d, a 20 percent increase compared with the same period in 2014
  • Total equivalent production was 54.7 MBoe/d, an 18 percent increase compared with the same period in 2014
  • Reducing the midpoint of our per unit cost ranges by over 5%
  • Reduced the average drilling cycle times from 10 days to 9 days

Eagle Ford Shale Drives Carrizo’s Q1

30% Production Growth over 2014
Carrizo Oil 2015 Q1

Carrizo Oil 2015 Q1

Carrizo Oil announced its first quarter earnings and reveal a production growth driven by activity in the Eagle Ford

Related: Carrizo Acquires Eagle Ford Working Interest

Eagle Ford Highlights

Carrizo’s first quarter activity in the Eagle Ford includes 23 gross operated wells waiting on completion. These wells equate to potential crude oil production of more than 7,500 barrels per day. For the same period, the company drilled 14 gross (12.2 net) operated wells during the first quarter, and completed 16 gross (14.5 net) wells. Crude oil production from the play was approximately 18,700 Bbls/d for the quarter.

S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented on the results, “We remain focused on cost savings in the current environment, and continue to make good progress on this front. Currently, we have achieved drilling cost reductions of more than 10% and completion cost reductions of nearly 25% from late 2014 levels, putting us ahead of the forecast we provided in January.”

Q1 Highlights:

  • Oil Production of 21,373 Bbls/d, 42% above the first quarter of 2014
  • Total Production of 34,595 Boe/d, 30% above the first quarter of 2014
  • Loss From Continuing Operations of $21.5 million, or ($0.46) per diluted share, and Adjusted Net Income of $6.4 million, or $0.14 per diluted share
  • Adjusted EBITDA of $101.8 million
  • Raising 2015 crude oil production growth target to 18%

Carrizo currently has 81,000 net acres with mineral leases and leasing activities located primarily in La Salle County with smaller positions in Atascosa, Frio, and McMullen Counties.

Read more at carrizo.com

Repsol Moves into the Eagle Ford

Acquisition of Talisman Complete
Repsol Acquires Talisman

Repsol Acquires Talisman

Repsol completed its acquisition of Talisman Energy last month and became one of the largest companies in the energy sector worldwide.

Related: Talisman Energy Cuts Jobs

The deal brings Repsol into the Eagle Ford and allows them to gain 59,000 net acres of south Texas land. It is still unclear how this merger will affect those Eagle Ford shale operations. In a conference call on May 10th, Repsol said that Talisman’s assets had been consolidated into its upstream division, but they were not ready to reveal further details about their plans.

The announcement comes days after Talisman released strong first quarter results.

‘Talisman delivered solid operational and financial results in the first quarter of 2015 against a backdrop of significantly lower commodity prices and our strategic decision to cut capital investment,’ said Hal Kvisle, President and CEO. ‘Production from ongoing operations averaged 360,000 boe/d in the quarter, up slightly from the first quarter of 2014, and cash flow(1) was $605 million for the quarter, supported in large part by hedging settlements.’

First Quarter Highlights:

  • Production averaged 360,000 boe/d in the first quarter of 2015, up 2% from the first quarter of 2014.
  • Cash flow was $605 million, up 19% from the previous quarter
  • Capital spending was $436 million, down 48% from last quarter and 43% from the first quarter of 2014
  • Operating cost was $439 million, down 17% from the previous quarter and 15% from the first quarter of 2014.

Read more at repsol.com

Penn Virginia Invests in the Eagle Ford

96% of 2015 Spending Targets South Texas
Penn Virginia 2015 Q1

Penn Virginia 2015 Q1

Penn Virginia Corp. released its first quarter update last week, showing its Eagle Ford operations the big star.

Realated: Penn Virginia Upper Eagle Ford Production Taking Off

Since moving into the Eagle Ford in 2010, Penn Virginia has focused a great deal of its resources on the area. For the first quarter of 2015, the Eagle Ford accounted for 87% of the company’s production (21,390 BOEPD of 24,721 BOEPD). Looking ahead, 96% of 2015 spending will go towards Eagle Ford development.

Q1 Highlights

  • Total production increased 17% over the first quarter of 2014
  • 25% Decrease in Average Eagle Ford Well Cost Since Early Fourth Quarter 2014
  • Decrease for unit production costs: $10.68 per BOE from $11.52 per BOE.
  • Over the past 12 months, 23 Upper Eagle Ford wells have been brought on line
“While continuing to increase production, our primary focus has been on cutting well costs and improving our operational execution,” said H. Baird Whitehead, President and Chief Executive Officer of Penn Virginia, in a conference call following the release. “With 23 wells completed over the past 12 months, we feel that we have successfully de-risked the Upper Eagle Ford across much of our acreage and have achieved excellent average results.”

As of October 2014, Penn Virginia had approximately 145,500 gross acres in the Eagle Ford Shale play in Gonzales and Lavaca Counties, Texas.  Read more about Penn Virginia in the Eagle Ford

Read full press erlease at pennvirginia.com

Matador Still Keen on the Eagle Ford

Company Hopes to Resume Activity in 2016
Matador Released 2015 Q1

Matador Released 2015 Q1

Matador Resources announced first quarter earnings and set hopes for further Eagle Ford activity.

Related: Matador Reduces Eagle Ford Rigs in 2015

In an earnings call on May 7th, Matador executives discussed the company’s $50.2 million loss for the first quarter of 2015, a drastic change from the $16.4 million profit reported one year ago.

Low oil prices have taken a toll on the company’s earnings and caused them to temporarily suspend operations in the Eagle Ford Shale.

Responding to questions about Matador’s intentions for the Eagle Ford, Joe Foran – CEO responded that “we are looking, hopefully that circumstances will suggest to be acting again in the Eagle Ford in 2016. We are very open to acquiring and are in the process of acquiring some additional acreage there (EFS) to build up our inventory. We feel we’ve got 250 or so wells to drill over there with welcome deals if some people have expiring acreage that they would like for us to be interested in. We’ve got a lot of good locations left there and we are really high on the Eagle Ford still.”

Q1 Highlights:

  • Company growth: Up from 400 barrels of oil per day to over 11,000 barrels a day
  • Reduced operating costs 30% to 40%  through vendor adjustments and reducing number of days on wells and complete them better and then our gas lift system on production.
  • Production continues to meet  & exceed our expectations and for the first time in our history, we produce more than 2 million BOEs in a single quarter, recording production of 2.1
  • Completed the merger with HEYCO that included 29 new employees in Roswell, New Mexico.


Sanchez Energy Reports Strong Q1

60% Production from Eagle Ford's Catarina
Sanchez Energy Released 2015 Q1

Sanchez Energy Released 2015 Q1

Sanchez Energy announced a strong start to 2015 during it’s conference call last week, reporting they have reached new milestones for production and cost structures.

For the first quarter of 2015, Sanchez saw record production averaging 45,217 barrels of oil equivalent per day during the quarter and reported they are currently producing approximately 50,000 barrels per day. Completed well costs in all of regions of the company’s Eagle Ford operations (Catarina, Marquis and Cotulla/Wycross) are below $5.0 million, and are anywhere from 30% to 40% below costs from Q4’14.

A huge factor in Sanchez growth and success in the Eagle Ford is due to their acquisition of 106,000 acres in Catarina, TX from Dutch Shell last year. Catarina accounted for 60% of the company’s production in Q1’15.

Read more: Sanchez Nearly Doubles Eagle Ford Acreage in $639 Million Deal

Christopher D. Heinson – Chief Operating Officer and Senior Vice President talks about their success: “At the time of our IPO in December of 2011, we had production of approximately 600 barrels of oil equivalent per day. Since that time, through a combination of organic growth and strategic acquisitions, we have now grown production to approximately 50,000 barrels of oil equivalent per day and at our current pace, have well over a decade of high return drilling opportunities in our inventory.”

Q1 Eagle Ford Highlights

  • Record production averaging approximately 45,217 BOE/D
  • Executed and closed the sale of escalating working interests in 59 producing wellbores in the non-operated Palmetto Field for aggregate consideration of approximately $85 million
  • Catarina: Exceeded our first annual 50 well drilling commitment, by drilling 54 wells.
  • Catarina: successfully appraised three distinct and productive benches
  • Well costs trending down across assets, and we are now drilling and completing wells at Catarina,Cotulla, and Marquis at a cost that is approximately 30 to 40% below well costs realized in the fourth quarter 2014, with drilling and completion costs at Catarina now trending below $4.5 million.

Read more at sanchezenergycorp.com