Marathon Increases Its Eagle Ford Resource Estimate to 1 Billion Barrels

Co-development of the Austin Chalk and Eagle Ford Planned
Marathon Eagle Ford and Austin Chalk Development Plan

Marathon Eagle Ford & Austin Chalk Development Plan

Marathon Oil has increased its total resource estimate for the Eagle Ford from 469 million barrels initially to ~1 billion boe today.

The company will run 18 rigs throughout 2014 in the the Eagle Ford.

In addition, Marathon will pursue developing both the Austin Chalk and Eagle Ford in the area. [Read more...]

Marathon Oil Expects to Exit 2013 Producing 100,000 boe/d from the Eagle Ford

Drilling & Completion Costs Are Down More Than 20% Since Q3 2012
Marathon Oil Eagle Ford Acreage Map & Improving Well Performance

Marathon Oil Eagle Ford Acreage Map & Improving Well Performance | Click to Enlarge

Marathon Oil’s Eagle Ford production averaged more than 90,000 boe/d at the end of October and is on pace to eclipse more than 100,000 boe/d by year-end 2013. Another important note is that more than 70% of oil production is now being transported by pipelines. [Read more...]

Marathon Oil’s Eagle Ford Acquisition Includes 4,800 Acres – $97 Million

Marathon Oil Eagle Ford Acreage Map & Improving Well Performance

Marathon Oil Eagle Ford Acreage Map & Improving Well Performance | Click to Enlarge

Marathon Oil announced three significant items on September 10th. The company plans to repurchase $1 billion in common stock, sell an interest in Angola for $590 million, and complete an acquisition of 4,800 acres in the Eagle Ford for $97 million. [Read more...]

Magnum Hunter Resources Completes Sale To PVA – Still Targeting Eagle Ford & Pearsall

Pearsall Well Produces Almost 600 Boe/d
Magnum Hunter Resources Acreage Map

Magnum Hunter Resources Acreage Map | Click to Enlarge

Magnum Hunter Resources (MHR) completed the sale of 19,000 net acres in the Eagle Ford to Penn Virginia for approximately $400 million in the second quarter. The deal was for the majority of the company’s Eagle Ford holdings.

Magnum Hunter retained approximately 7,000 net acres prospective for the Eagle Ford and Pearsall Shale formations in Atascosa, Fayette, and Lee counties. Two wells were completed and the company plans to explore and develop its acreage further. [Read more...]

Marathon Oil Writes Down Eagle Ford Acreage, But Grows Production 22%

Eagle Ford Properties Realize A $340 Million Impairment
Marathon Oil Core Eagle Ford Acreage

Marathon Oil Core Acreage | Click to Enlarge

Marathon Oil is writing down $340 million in unproven acreage in Bee, DeWitt, Lavaca, and Wilson counties.

The acreage isn’t necessarily bad, but it either doesn’t compete with the rest of Marathon’s acreage or lease expirations are simply coming quicker than the company can deploy rigs (capital).

After making several acquisitions over the past few years, it really comes as no surprise. [Read more...]

Typical Eagle Ford Well Start to Finish Video – Marathon Oil

Watch As 100s of Contractors and Employees Move On and Off Location

This is a great time lapse video of a typical Eagle Ford well captured from start to finish by Marathon Oil. The video was shot over a period of a few months.

[Read more...]

Marathon Oil’s Capital Budget Favors the Eagle Ford in 2013

South Texas Gets 40% of Marathon's 2013 Capital Budget
Marathon Oil Core Eagle Ford Acreage

Marathon Oil Core Acreage | Click to Enlarge

M arathon Oil’s Eagle Ford assets will be the beneficiary of $1.9 billion in spending in 2013. Marathon released plans to spend $5.2 billion in 2013, with almost 40% of the total earmarked for South Texas.

Approximately 65% of the company’s budget is allocated to “Growth” assets and you guessed it. The Eagle Ford is a “Growth” asset for the company. That’s why $1.9 billion is allocated toward the Eagle Ford. Current plans call for the drilling of 275-320 gross (215-250 net) operated wells in 2013. [Read more...]

Marathon Oil Brings on Record Well – Drilling 255 Eagle Ford Wells in 2012

Burrow 2-H in Gonzales County produced at a peak 24-hour rate of 6,275 boe/d
Marathon Eagle Ford Acreage Map - July 2012

MRO Eagle Ford Acreage Map | Click to Enlarge

Marathon Oil reported earnings today and impressive Eagle Ford results accompanied the news. Marathon has driven Eagle Ford drilling times down to 24 days across its acreage and has increased the number of wells it expects to drill by 20 to 250-260 in 2012.

“Our investment in the Eagle Ford shale a little more than a year ago, and our bolt-on acquisitions since then, continue to deliver value beyond original expectations. Not only have we improved the speed and efficiency of our drilling and completions there, we also continue to optimize well spacing which could significantly increase drillable locations and recoverable reserves. [Read more...]

Marathon’s Eagle Ford High-Grading Means Buy Here, Sell There

The company spent more than $50,000 per acre in its latest deal
Marathon Eagle Ford Acreage Map - July 2012

MRO Acreage Map | Click to Enlarge

Marathon Oil announced just two weeks ago that it plans to sell almost 100,000 non-core acres in the Eagle Ford Shale, but this past week the company announced it has spent $227 million on 4,300 net acres in its core area. Associated production wasn’t released, but this will easily go down as the highest multiple the company has paid for any sizable tract of acreage. $227 million for just over 4,000 acres works out to be more than $50,000 per acre.

Don’t let the assets sale fool you. The latest acquisition is the perfect example how committed Marathon is to the area. [Read more...]

Marathon Oil Selling Eagle Ford Acreage in Wilson, Karnes, and Bee Counties

The company plans to divest 97,000 net acres to focus on a core area of 200,000 acres
Marathon Eagle Ford Acreage Map - July 2012

MRO Acreage Map | Click to Enlarge

Marathon Oil is selling almost one-third of its Eagle Ford acreage in South Texas. The company is selling acreage it doesn’t consider essential to its exploration plans and production growth targets are not expected to be adjusted after the sale.

The company currently has approximately 325,000 net acres in the Eagle Ford and plans to focus future development on a core area of 200,000 net acres. The 97,000 net acres being marketed are predominately located in Wilson County, with some acreage and Bee and Karnes counties as well. [Read more...]

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