Marathon Oil Reduces Budget Again

41% of 2015 Spending Targets Eagle Ford
Marathon Oil

Marathon Oil in the Eagle Ford

Marathon Oil reported last week it is reducing 2015 capital spending another 20 percent from their initial December forecast.

These cuts bring the projected capex to $3.5 billion, which is less than half of 2013 spending and includes exploration spending of $232 million.

Marathon Oil will continue to focus on activity in the Eagle Ford and plans to spend 41% of its 2015 in the Texas region. Of the $1.4 billion earmarked for the Eagle Ford, approximately $1.0 billion is dedicated to drilling and completions. The company will drill 141-152 net wells and bring 176-192 total wells to sale in the new year.

CEO Lee Tillman commented on the tough decision he faces, “We’re also prepared to exercise further flexibility in our spend levels as pricing and the macro environment warrant. Our objective is clear–to deliver long-term shareholder value, regardless of the commodity price cycle, by focusing on those elements of our business which we control.”

Marathon Oil in the Eagle Ford

Marathon Oil has increased its acquisitions in the Eagle Ford over the last several years and now holds approximately 211,000 net acres in the Eagle Ford. has invested strategically to grow its presence in the formation’s highest value oil and condensate core areas. Activity is focused on Atascosa, DeWitt, Gonzales and Karnes counties.

Read more about Marathon in the Eagle Ford


Atlas Resource Partners Enters Eagle Ford – $225 Million Deal

Deal Includes 22 Producing Wells in Atascosa County, TX
Atascosa County Eagle Ford Shale Map

Atascosa County, TX

Pittsburgh-based Atlas Resource Partners (ARP) is entering the Eagle Ford in a $225-million deal. ARP will acquire 22 producing wells and 19 undeveloped locations containing estimated net reserves of 12-million BOE, according to company officials. The seller was not disclosed.

The producing wells are all located in Atascosa County, TX, which is the heart of the Eagle Ford oil window. The oil cut from these wells is 87%, with 7% NGLs and 6% natural gas. ARP officials did not indicate the exact county or counties for the undeveloped drilling locations.

The transaction, which has an effective date of July 1, 2014,  is expected to close some time in the fourth-quarter. The company will pay $200-million of the purchase price at closing.

ARP CEO Edward E. Cohen, said, “we expect this transaction to immediately enhance ARP’s cash flow, distribution coverage and credit metrics, providing additional visibility and growth.”

In connection with the acquisition, Atlas Energy, L.P.’s (ATLS) E&P development subsidiary will purchase eight wells that have already been drilled, but are uncompleted, in the play. The $115-million purchase also includes 53 undeveloped Eagle Ford locations.

ARP is an exploration & production master limited partnership which owns an interest in over 14,000 producing natural gas and oil wells, located primarily in Appalachia, the Barnett Shale (TX), the Mississippi Lime (OK), the Raton Basin (NM), Black Warrior Basin (AL) and the oil-rich Rangely Field (CO).