Murphy Oil’s Eagle Ford Production Hits Milestone

Production Volumes Set to Double From 2012 To 2013
Murphy Oil Eagle Ford Production

Murphy Oil Eagle Ford Production | Click to Enlarge

Murphy Oil surpassed 25,000 boe/d at the end of 2012 and annualized production averaged 15,000 boe/d. With an exit rate above 25,000 boe/d, the company is in a nice position to meet or exceed its production target of 30,000 boe/d in 2013.

Murphy is working 10 rigs and three frack crews around the clock. The company has drilled 216 wells to date and has brought 163 to production. Total time spent to drill and case wells is averaging 11-13 days across the play. [Read more…]

Rosetta Resources Plans Eagle Ford Development at 55-Acre Spacing at Gates Ranch

Development at Gates Ranch in Webb County now includes a total of 428 wells
Rosetta Resources Eagle Ford Shale Activity Map

Rosetta Resources Acreage & Rigs | Click to Enlarge

Rosetta Resources continues to evaluate its well spacing tests across the Eagle Ford, but results to date show no interference from wells tested at 425-565 ft apart or 50-65 acre spacing. Without signs of interference, the company is going forward with development at 55-acres spacing. The lower down-spacing interval will allow the company to drill 428 wells across its Gates Ranch properties; a 29% increase.

Rosetta expects it had approximately 800 net wells to be completed throughout its Eagle Ford position at the end of 2011. Over 30% of those are located in the Gates Ranch area of Webb County where the company has two rigs running continually. The company’s rigs are spread throughout the Briscoe Ranch, Central Dimmit County and the company’s Karnes County acreage.

Read the company’s full press release regarding down spacing results at rosettaresources.com

Marathon’s Eagle Ford Production Grows 50% in Three Months

Spud to spud drilling time down to 23 days from 40+ in 2011
Marathon Eagle Ford Acreage Map - July 2012

MRO Acreage Map | Click to Enlarge

Marathon Oil‘s second quarter production levels in the Eagle Ford grew 50% from the first quarter of the year. 50% quarter over quarter. In the second quarter, Eagle Ford production averaged 21,000 boe/d, with 75% attributable to crude/condensate and 11% attributable to NGLs. By the end of July, production had stretched to more than 31,000 boe/d. Marathon is on pace for 50% quarterly growth again.

2012 will be marked as the year in which the company hit its stride in development of the play. Through the first half of the year, the company has started drilling on 107 wells and brought 72 to production. The company has completed more than 210 miles of gathering lines and five central battery plants, with five more in progress. As of the second quarter, the midstream build out had allowed the company to move 60% of its crude production through pipelines.

Marathon Testing Down Spacing at 40-acres

Marathon Down Spacing Pilot Test

Marathon Down Spacing Test | Click to Enlarge

Marathon is also testing optimal well spacing. The company has ten spacing pilots planned and active. Five of the pilots are producing at 40 to 100-acre spacing and five more are planned at 40 to 80-acre spacing. A few things happen when wells can be drilled at tighter spacing intervals:

  • Recovery rates rise
  • More wells can be drilled from a single pad, lowering total surface disturbance
  • Well costs fall with the efficiencies of more centralized operations

Expect to hear more at the end of the year from Marathon and others in regards to acreage spacing. Also listen for results from other tests involving lateral placement, stimulation design, and toe placement of the well.

Marathon Drilling Times Drop to 23 Days

By our count, the company averaged 18 rigs running in the second quarter and reported drilling 61 gross wells, with 50 brought to production. The company plans to lower its rig count for the remainder of the year, but will still meet its well targets. Marathon can lower the rig count and drill the 230-240 wells planned because the company has lowered its spud to spud drilling time to 23 days from more than 40 days less than a year ago. At the end of July, the company was running 22 rigs, but plans only call for only 18 rigs to run through the remainder of the year.

The company also closed the $750 million acquisition of Paloma Partner’s Eagle Ford Assets on August 1st.

Cabot Oil & Gas 400 ft (55-acre) Spacing Test Yields Best Well To Date

Both wells are performing better than the company's average well to date
Cabot Oil and Gas Eagle Ford Shale Map

Click to View Larger Image

Cabot Oil & Gas reported initial results from its two well 400′ (55-acres) spacing test and plans to drill additional wells. The best of the two wells provided the highest initial IP rate of any of the company’s 33 wells to date. The second well is trending higher than the average of the company’s program to date.

Downspacing across the play is looking more and more viable in the volatile oil and the condensate trends of the play.

Cabot now plans to drill a second set wells utilizing 400 ft spacing to continue its evaluation. I suspect we’ll know more by the end of the third quarter and we’ll know if the company will shift its development program by early 2013. [Read more…]

EOG Resources Ups Liquids Forecast – Testing Further Downspacing

Production Rates on Tighter Spacing Indicate Better Completions

EOG Resources is gaining more confidence in the Eagle Ford and its other liquids plays. The company has increased its liquids growth projections for the entire company from 30% up to 33% in 2012.

Eagle Ford wells continue to exhibit improving recoveries as well flow rates hold up as the company drills at tighter spacing densities. [Read more…]

Cabot Oil & Gas – Eagle Ford Down Spacing Success at 55-Acres

Higher Initial Production from Closely Spaced Wells

Cabot Oil & Gas’ Eagle Ford acreage┬áin the Buckhorn area of Frio and La Salle counties will likely be developed on 55-acre well spacing (or less). Two wells tested at 400 ft spacing between 5,900 ft laterals came on line at 790 boe/d. At lower spacing intervals, Cabot has 550-700 Eagle Ford locations in the Buckhorn area alone.

That compares well to the previous seven development wells drilled in the Eagle Ford that came online at 860 boe/d. When compared to the average of all 30 wells Cabot has drilled, these were better. The company didn’t attribute the improvement to any one factor, but better completion designs developed at the end of last year likely played a role. [Read more…]

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