Penn Virginia Seeks to Expand Eagle Ford Position

Penn Virginia Acquired 6,400 Net Acres in First Quarter of 2014
Penn Virginia Eagle Ford Operations Update - Dec 2013

Penn Virginia Eagle Ford Operations Update – Dec 2013 | Click to Enlarge

During the first quarter of 2014, Penn Virginia added 6,400 net acres at a cost of $3,000 per acre, and in January, the company sold its Eagle Ford Shale natural gas gathering assets for $100 million in-part for reinvestment in the play.

Penn Virginia currently has 125,300 gross acres (85,900 net) in the Eagle Ford, and anticipates on growing its acreage to a minimum of 100,000 net acres.

CEO H. Baird Whitehead said, in a company statement, “due to continued success in adding to our Eagle Ford Shale acreage position, we are increasing our leasing capital expenditures guidance for the year.”

It can be assumed with great confidence that Penn Virginia will strike a deal for more Eagle Ford acreage in the very near future.

Read MorePenn Virginia Sells Eagle Ford Midstream Assets to ArcLight Capital

Penn Virginia Eagle Ford First Quarter Operations Update

Penn Virginia’s Eagle Ford production was up 15% quarter over quarter, from 13,145 boe/d to 15,152 boe/d at the end of the first quarter of 2014. Eagle Ford production represented ~72% of Penn Virginia’s record breaking total production for the quarter of 21,133 boe/d.

During the quarter, the company saw positive results from two of its Upper Eagle Ford test wells in Lavaca County. One of the wells had an initial production (IP) rate of 2,165 boe/d. Company officials say that the two wells have the highest wellhead flowing pressures they have seen to date in the Eagle Ford, with GORs (gas-oil-ratios) of 5,000 – 6,000 standard cubic feet per barrel.

Whitehead said, “initial testing of our adjacent Upper / Lower Eagle Ford Shale wells commenced in the first quarter and the initial results are strong. We saw initial production in excess of 2,000 BOEPD with a very high flowing pressure. Longer term testing will be necessary in order to fully understand the upside associated with the Upper Eagle Ford Shale, but we are very optimistic about the play.”

Penn Virginia estimates in both the upper and the Lower and the Upper Eagle Ford that approximately 1,510 gross drilling locations remain. Of that figure, 68% of those locations are prospective for the Lower Eagle Ford.

During the quarter, the company completed 16 (12.9 net) operated wells and participated in the completion of two (0.9 net) outside operated wells. At the end of the quarter, the company had a total of 19 (11.1 net) wells completing or waiting on completion and six (3.4 net) wells being drilled.


Comstock’s Best Eagle Ford Wells Came Online in McMullen County in 2013

Comstock spent $137 million on acreage acquisitions in 2013
Comstock Eagle Ford Wells

Comstock Eagle Ford Wells | Click to Enlarge

In 2013, Comstock completed 63 gross (42 net) Eagle Ford Shale wells, including six wells (3.8 net) drilled in 2012. Completed Eagle Ford Shale wells had an average initial production (IP) rate of 780 boe/d.

Read moreMcMullen County, TX and the Eagle Ford Shale

Best Producing Comstock Wells – McMullen County, TX

Comstock’s best wells in the Eagle Ford were drilled in McMullen County, TX. Average boe/d results for the six best wells are listed below:

  • Gloria Wheeler C #3H – 1,340 boe/d
  • Gloria Wheeler C #1H – 1,219 boe/d
  • Gloria Wheeler D #4H – 1,113 boe/d
  • Gloria Wheeler A #4H 1,066 boe/d
  • Gloria Wheeler D #3H 1,054 boe/d
  • Gloria Wheeler C #2H 1,025 boe/d

All six wells produced more than 1,000 boe/d.

Comstock Company-Wide Drilling and Expenditures

During 2013, Comstock spent $343.6 million on its continuing development and exploration activities and $137.0 million on acreage acquisition costs. Comstock drilled a total of 75 horizontal oil wells (51.6 net) and two horizontal natural gas wells (2.0 net) across the company’s assets.

Of the $137 million spent on acquisitions, the company spent $66.5 million on 70% of Ursa Resources’ interest in Eagle Ford assets in Burleson and Washington counties. The deal included one well producing 433 boe/d and 32,000 gross (20,000 net) acres.

Read more: Comstock-Ursa Resources Reach Eagle Ford Deal Worth $66.5 Million

Comstock had ~6,300 b/d of crude oil production in 2013. That’s up 29% from 2012 when production was ~4,900 b/d. Oil and gas sales increased by 7% in 2013 to $422.6 million from $394.6 million in 2012. 

Comstock 2013 Highlights

  • 63 gross (42 net) Eagle Ford Shale wells completed
  • 75 horizontal oil wells (51.6 net) and two horizontal natural gas wells (2.0 net) drilled
  • Average Eagle Ford completed well had an IP rate of 780 boe/d
  • Highest producing well was drilled in McMullen County – Gloria Wheeler C #3H – 1,340 boe/d
  • Spent $343.6 million on its continuing development and exploration
  • Invested $137.0 million on acreage acquisitions
  • Crude oil sales volume grew to ~6,300 b/d


Forest Oil Targets the Eagle Ford’s Upper Interval

Recent Wells Produce 100% More Than Initial Wells

Forest Oil Eagle Ford Acreage

Forest Eagle Ford Map | Click to Enlarge

Forest Oil has doubled 30-day initial production rates by targeting the upper interval of the Eagle Ford and completing wells with smaller frack stages. Production from recent wells has yielded 30-day IP rates of more than than 465 boe/d. That’s up from a little more than 200 boe/d from initial development wells. [Read more…]

Chesapeake Shifts One-Third of Capital to the Eagle Ford – Production Hits 75,000 boe/d

Planning a VPP in the Eagle Ford and Setting Weekly Production Records

Chesapeake Energy’s Eagle Ford assets will receive 30% of the company’s capital budget in 2012 and 40% in 2013. The company is shifting capital from natural gas developments to oil in areas like the Eagle Ford and the Utica.

Low natural gas prices are driving the shift to oil for many operators. Natural gas focused companies like Chesapeake are literally evolving before our eyes. The company grew crude oil production in the Eagle Ford from 25,000 b/d at the end of the year to over 55,000 b/d at the end of April. Bringing 30,000 b/d of crude onto the market in just a few short months is no small feat. [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 in 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…]

ConocoPhillips Revenue Down in Q1 – Eagle Ford Activity Up

$37/bbl WTI Breakeven on Average Eagle Ford Wells
ConocoPhillips Eagle Ford Production

ConocoPhillips Eagle Ford Production - Click to Enlarge

ConocoPhillips (COP) is in the process of spinning off its crude oil refining business into a new company named Phillips 66. The company reported lower revenues than expected in the first quarter of 2012. I’m sure the details of the split are distracting corporate executives, but there isn’t any sign of letting up in the Eagle Ford. Conoco ran an average of more than 16 rigs targeting the Eagle Ford during the first quarter of 2012. That’s up two rigs from 14 during the fourth quarter of 2011.

The company is on pace to grow production to more than 60,000 boe/d in 2012 and to almost 120,000 boe/d in 2013. [Read more…]