Eagle Ford Well Record for Natural Gas – Escondido Resources II

Escondido Produces 16 mmcfd from Eagle Ford gas well. Pushes forward in the Olmos and Escondido formations
Petrohawk Eagle Ford Shale Map

Hawkville Seen Here Extends into Webb County | Click to Enlarge

An Eagle Ford well record was recently set by Escondido Resources in the Hawkville Field in Webb County. The company completed the Spohn Ranch 1H well with a 6,975 ft lateral and 25 fracture stages. The well came online at more than 16 mmcfd and produced 0.4 Bcf in the first 30 days online. Escondido now has plans for additional development in the area.

Escondido is also pushing forward developing other horizons in South Texas. The company just completed its first horizontal “Escondido” well. Let’s hope for the company’s namesake this turns out to be a good investment. The first well indicates it will and the company plans seven follow up wells

The Storey 4H well is located in LaSalle County, Texas. in the Tres Encanto Field, an area also referred to as the White Kitchen Field. In its first 30 days of production, the Storey 4H averaged nearly 400 barrels of crude oil production per day along with 1.2 Mmcf of associated gas per day. The well was completed with eight frac stages over a 4,475-foot lateral. [Read more…]

BHP – Petrohawk Deal Brings Australia to the Eagle Ford

Petrohawk’s Eagle Ford position is paying off in a big way.  The company has received a bid to be acquired by BHP Billiton for a 65% premium over the prior days stock price. Petrohawk’s leading position in the Eagle Ford is likely a primary driver behind the acquisition. The company is strategically positioned in two of the hottest areas of the Eagle Ford with its Black Hawk and Hawkville field positions. The company also has a sizeable oil position at the Red Hawk Field in the Eagle Ford Shale Oil window that has not provided the economic results needed to compete for capital with Petrohawks other assets. Expect the Red Hawk Field to get more attention now that the operator has much deeper pockets.

Overall, drilling rates across Petrohawks asset base will likely increase as BHP looks to accelerate value from its newly acquired assets.

That’s a hefty price but BHP needs the people and the assets. After several failed bids to consolidate in the mining industry, the company turned to investing in oil & gas exploration and production.

The Petrohawk acquisition follows BHP’s $4.75 billion acquisition of Chesapeake’s Fayetteville Shale assets. BHP only got the assets in the Chesapeake deal, so over the next year the company was tasked with building a large US E&P business. The Petrohawk acquisition gives them the human capital and just happens to be a company that was a leader in the Fayetteville Shale before divesting assets to focus in the Haynesville Shale and Eagle Ford Shale.

BHP gets Petrohawk with its three core positions which include 225,000 acres in the Haynesville Shale, 120,000 net acres in the Lower Bossier Shale, 332,000 acres in the Eagle Ford Shale, and 325,000 acres in the Midland/Delaware basins, which is prospective for the Avalon Shale, Bone Springs, and Wolfcampian formation.

Combined with the Chesapeake deal, BHP will become one of the top ten natural gas producers in the US. The company’s onshore US operations will include almost 1,500,000 net acres that produce over 1.3 Bcf per day. [Read more…]

Eagle Ford Shale Region Experiencing a Record Drought

South Texas is experiencing one of the worst three droughts on record.  Producers are coming up with creative ways to conserve resources and tap water resources that have gone unused for many years. [Read more…]

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