Eagle Ford Flaring Impact on South Texas – Video

SA Express: La Salle County Flared 1/5 of Natural Gas Production Between 2009 - 12

Since the Eagle Ford oil boom began in 2009, the prolific development of the liquids-rich shale formation has put Texas in an enviable position on the world-stage as a top oil producer. As with any boom, there have been positives and negatives associated with development. This week, the San Antonio Express News published an investigative report highlighting one of the negatives – the flaring of natural gas.

As companies have aggressively developed the Eagle Ford Shale to benefit from the current high price of oil, natural gas, a lower priced commodity, has been flared in the process. A lack of natural gas pipeline infrastructure in some areas has also contributed to flaring. Federal rules implemented in 2011 that require greenhouse gas permits for things like compressor stations and processing plants have likely tied up pipeline projects that would’ve otherwise been implemented. Still, pipeline companies, which generally conduct an open season prior to beginning construction on a project, have had trouble getting enough commitments for natural gas pipelines in other oily plays like the Bakken Shale in North Dakota, which is the second most significant U.S. domestic shale play to the Eagle Ford. The Bakken Shale currently flares nearly 30% of its natural gas.

Read more: MDU Resources’ Natural Gas “Dakota Pipeline” Update – March 2014

According to the paper, oil producers flared and vented 32.7 billion cubic feet (Bcf) of casinghead gas from 2009 to 2012. That’s nearly 8% of all casinghead gas produced in the region, and 10 times higher than the flaring rate in the rest of Texas. During the same time frame, La Salle County, a top producer in the play, flared or vented about a fifth of its production — more than 10 million cubic feet (MMcf). At oil wells in Atascosa and Frio Counties, energy firms flared a quarter of the 17 Bcf of casinghead gas they produced. Companies operating in Wilson County produced nearly 1.4 Bcf of gas from oil wells, but flared or vented more than a third of it.

The question is could flaring be affecting health and quality of life. For some South Texas residents, there’s no question – Yes! The paper revealed that an estimated 15,000 tons of volatile organic compounds and other contaminants were released into the air in 2012 from flaring.

Watch the video below for first-hand accounts about the impact of flaring on South Texas:


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.

[Read more…]

New Standard Energy Completes Drilling Operations on its First Eagle Ford Wells

Production Slated to Begin in April or Early May
Magnum Hunter Resources Eagle Ford Acreage Map

Magnum Hunter Resources Eagle Ford Acreage Map

Australia-based New Standard Energy completed drilling operations on its second Eagle Ford well (Peeler Ranch 6-H) in late March 2014. The first well (Peeler Ranch-5H) was completed at the end of February 2014. New Standard entered the Eagle Ford in December 2013 when the company acquired Magnum Hunter Resources’ Eagle Ford assets in Atascosa County, TX.

The wells are operated on the company’s behalf by Magnum Hunter. New Standard has a 98.4375 % working interest and a 72.4125 % net royalty interest in the two wells.

[Read more…]

Magnum Hunter Signs Option To Sell Pearsall & Eagle Ford Assets ~$25 Million

MHR Turns Focus to the Marcellus and Utica Shales
Magnum Hunter Resources Acreage Map

Magnum Hunter Resources Acreage Map | Click to Enlarge

Magnum Hunter (MHR) has granted New Standard Energy, an Australian company, the option to acquire Pearsall Shale and Eagle Ford Shale assets in Atascosa County.

New Standard paid $75,000 for the option and will pay an additional $15 million in cash and $9.5 million in equity.

In total, Magnum Hunter will receive a little less than $25 million for ~5,200 net acres and 300 boe/d of production from five wells. New Standard has until January 21, 2014, to exercise the option. [Read more…]