Pioneer Taps the Brakes in the Eagle Ford

Pioneer Natural Resources had planned to grow its rig count to 14 in 2012, but 25% of the company’s development was set for dry gas. With natural gas prices below $3/mmbtu, Pioneer is backing off and delaying the two new rigs until 2013. The company still plans to have 19 rigs running by 2015.

Production also made a considerable jump in the fourth quarter. The company produced more than 20,000 boe/d, compared to 14,000 boe/d in the third quarter. Gathering constraints are being eased and more companies are seeing significant production jumps.  [Read more…]

Pioneer Natural Resources Adds Frack Crew – White Sand Completions – Q311 Ops

Pioneer Natural Resources (PXD) reported strong growth from its Eagle Ford Shale assets when the company operates in partnership with Reliance Industries. The company is currently running 12 rigs in the play and has assembled 2 frack crews solely dedicated to the Eagle Ford. The second crew will be active in Q4 2011. Both crews compliment the company’s two-year third party completion agreement.

Wells are producing a 65% liquids cut that includes oil, condensate, and NGLs. Average wells laterals extend 5,500 ft and completions involve 13 frack stages. Wells are being brought on at restricted rates (16/64ths) to protect against reservoir damage at high flow rates. To date, company is seeing improved declines.

The company’s midstream partnership will continue to build out gathering facilities in 2012 and will begin financing construction through outside sources in the next year. Well costs across the play average $7-8 million, but the company is saving as much as $700,000 per well by utilizing white sand in the more shallow portions of the play.

Production grew quarter over quarter from 8,000 boe/d to 14,000 boe/d and is expected to reach as high as 60,000 boe/d in 2014.  [Read more…]

Pioneer Natural Resources Using White Sand in Completions

Pioneer’s Eagle Ford Shale completion costs are lowered by as much $700,000 when the company uses white sand instead of ceramic proppant. That’s an almost 10% savings on wells that costs $7-8 million. The company is testing white sand on 30% of its wells in 2011 and 2012. It will take some time to truly determine is white sand can hold up under the pressure of the Eagle Ford Shale.

Pioneer also lowered its drilled but uncompleted well inventory during the second quarter. The company went from 23 wells to just 11 as central gas processing facilities were brought online.

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