Encana announced strong second quarter performance along with plans to expand Eagle Ford operations.
In a press release last week, Encana Corp reported that the second quarter of 2015 marked seven consecutive quarterly increases. Total company production averaged 389,000 (BOE/d) with Encana’s four strategic assets contributing approximately 223,000 BOE/d (57%).
“Following our successful portfolio transformation in 2014, we continue to lower costs, improve well performance and increase well inventory in our four most strategic assets,” said Doug Suttles, Encana President & CEO. “We exited the second quarter with significant operational momentum and we expect to accelerate liquids growth through the second half of the year.”
Encana is relatively new to the Eagle Ford and purchased 45,500 acres in a $3.1 billion deal in May of 2014. Suttles said that though adverse weather and flooding in Texas impacted the quarter, Eagle Ford inventory has almost doubled and the company plans to expand even more. Eagle Ford highlights include:
- Reducing D&C costs by almost 30%
- Averaged $6.2 million well cost
- Significant improvements to our artificial lift systems
- Expect our total Eagle Ford production will be exceeding 50,000 Boe a day shortly. This represents a 15% increase from Q3 2014.
- Undrilled well inventory stands at over 600 locations- a 70% increase since we acquired the asset
- Ramping up production in the Permian and Eagle Ford where we expect to bring on approximately 40 wells in July and an additional 36 wells over the balance of the third quarter
Encana’s recent announcement that they will layoff over 200 employees will be would not affect the Eagle Ford operations.
Read more at encanacorp.com