ZaZa Energy Gathers Funds for Eaglebine Development

$7.5 Million Stock Deal
Eagle Ford & Eaglebine Map

Eagle Ford & Eaglebine Map | Click to Enlarge

Eagle Ford-focused ZaZa Energy Corp. entered into a $7.5 stock deal with Los Angeles-based Crede Capital Group LLC, the company said in late July of 2014.

The proceeds will fund additional development and lease acquisitions in ZaZa’s East Texas area, the company said in a prepared release.

Crede purchased a total of $5-million of ZaZa common stock, priced at $0.83 each. The investment will be made in two phases, according to the company. The first phase closed on July 21st. The transaction includes 0.6 warrants for every share of ZaZa common stock with a price of $1.1205 per share.

The second phase, which is expected to close in late October, also includes 0.6 warrants for every share of ZaZa common stock. The price for additional shares will be determined by the closing price on the day of closing.

ZaZa – EOG Resources East Texas Eagle Ford JV

In March of 2013, ZaZa Energy and EOG Resources finalized terms on a joint venture (JV) targeting the Eaglebine in Grimes, Madison, Montgomery, Trinity, and Walker counties.

Read more: EOG – ZaZa Joint Venture in the Eaglebine

The company has re-focused its attention to the Eaglebine, after divesting 10,300 net Eagle Ford acres in July of 2013 to a subsidiary of Sanchez Energy for $28.8 million. Approximately 82% of ZaZa’s first quarter 2014 production came from the Eaglebine.

Read more: ZaZa Continues Laying Groundwork for Eagle Ford Growth


Hawkwood Energy Acquires East Texas Eagle Ford Acreage

Assets Located Primarily in Brazos and Robertson Counties
Brazos County Eagle Ford Shale Map

Brazos County, TX

Denver-based Hawkwood Energy, announced in early July of 2014 its entrance into the Eagle Ford with the acquisition of producing and non-producing assets in East Texas.

The deal includes 50,000 generally contiguous net undeveloped acres and approximately 1,800 b/d of current oil production, according to company officials. Development of the acquired assets has either targeted or will be prospective for the Eagle Ford Shale and Woodbine formations. The assets extend across Brazos, Leon, Madison and Robertson Counties.

Hawkwood acquired the assets in two separate transactions for undisclosed amounts from Crimson Energy Partners III and Encana Oil & Gas (USA) Inc. The deal with Crimson was mostly for acreage in Brazos County, and Encana’s assets included in the transaction were located primarily in Robertson County.

“We are excited about the growing unconventional activity in the Eagle Ford and Woodbine, as well as the other long term multi-pay opportunities the area has to offer,” said Hawkwood Energy CEO Patrick Oenbring.

Encana Divesting East Texas Assets

Encana has historically been a major industry player for natural gas production, but recently began selling many of its non-core assets to focus on liquids-rich shale fields. Some of those non-core assets were in East Texas, and in April of 2014, Encana announced the sale of approximately 90,000 net acres in Leon and Robertson Counties for $530 million. Company officials did not name a buyer for this transaction, and the deal is expected to close in the third quarter.

In June of 2014, Encana closed on its acquisition of 45,500 net acres in the oil window of the Eagle Ford in South Texas from Freeport-McMoran for $3.1 billion. This newly acquired acreage for Encana represents a new core area.

Read more: Encana Purchases Eagle Ford Assets from Freeport-McMoran – $3.1 Billion


Comstock Reveals Results from First East Texas Eagle Ford Well

10 (9.2 net) Burleson County, TX Wells to be Drilled in 2014
Comstock Resources East Texas Eagle Ford Map

Comstock Resources East Texas Eagle Ford Map

Comstock Resources Inc. announced the results of its first well drilled in its East Texas Eagle Ford Shale acreage in Burleson County, TX.

The Henry A #1H test well had a peak 24-hour average production rate of ~1,267 boe/d, with a ~80% oil cut. The well was drilled to a vertical depth of 9,514 feet, and had a 6,841 foot completed lateral which was stimulated with 17 stages and 10.2 million pounds of proppant. Comstock’s second well drilled in Burleson County, the Mach A #1H, recently reached total depth and will be completed in July.

At the end of 2013, Comstock inked a deal with Ursa Resources for 21,000 net East Texas Eagle Ford acres in Burleson and Washington Counties for $66.5 million. In early May of 2014, the company announced it had acquired a 30% working interest in one producing well and approximately 9,000 net acres in Burleson County for $33.9 million from Ursa, and was increasing its capex budget to acquire additional interests in the county. In an official statement from June of 2014, Comstock claimed 30,400 net acres in Burleson County.

Read moreComstock – Ursa Resources Reach Eagle Ford Deal Worth $66.5 Million

“We are very excited about the initial results from the Henry well and look forward to having an active development program on these properties in the future,” said Comstock CEO M. Jay Allison in a company statement. “The initial results of our first East Texas Eagle Ford well combined with successful offset wells of other operators are confirming the potential of our newly acquired acreage.”

Comstock plans to spend approximately $510 million in 2014 on development and exploration projects in its South Texas and East Texas Eagle Ford acreage in 2014. The budget for drilling activity includes $284.0 million to drill sixty-five wells (46.0 net) in the Eagleville field in South Texas, $79.0 million to drill 10 Eagle Ford shale wells (9.2 net) on the Burleson County, Texas acreage. The budget also includes $76.0 million to complete 18 wells (13.3 net) in the Eagleville field that were drilled in 2013 and $38.0 million on facilities and other development activity.


Comstock Resources Focused on the Eagle Ford in 2014 – Almost $400 Million Planned

Zero Natural Gas Wells Will be Drilled by Comstock in 2014
Comstock Eagle Ford Drilling Plans 2013

Comstock Eagle Ford Drilling Plans 2013 | Click to Enlarge

Comstock Resources will spend $394 million of the company’s $450 million 2014 budget in the Eagle Ford.

The company will spend $264 million drilling 59 gross (40.2 net) wells in the South Texas Eagle Ford, $80 million completing wells in the South Texas area, and $50 million to drill 10 gross (5.6 net) East Texas Eagle Ford wells (Burleson County) for a total of $394 million.

Read more: Comstock – Ursa Resources Reach Eagle Ford Deal Worth $66.5 Millon [Read more…]