Marathon Oil Reduces Budget Again

41% of 2015 Spending Targets Eagle Ford
Marathon Oil

Marathon Oil in the Eagle Ford

Marathon Oil reported last week it is reducing 2015 capital spending another 20 percent from their initial December forecast.

These cuts bring the projected capex to $3.5 billion, which is less than half of 2013 spending and includes exploration spending of $232 million.

Marathon Oil will continue to focus on activity in the Eagle Ford and plans to spend 41% of its 2015 in the Texas region. Of the $1.4 billion earmarked for the Eagle Ford, approximately $1.0 billion is dedicated to drilling and completions. The company will drill 141-152 net wells and bring 176-192 total wells to sale in the new year.

CEO Lee Tillman commented on the tough decision he faces, “We’re also prepared to exercise further flexibility in our spend levels as pricing and the macro environment warrant. Our objective is clear–to deliver long-term shareholder value, regardless of the commodity price cycle, by focusing on those elements of our business which we control.”

Marathon Oil in the Eagle Ford

Marathon Oil has increased its acquisitions in the Eagle Ford over the last several years and now holds approximately 211,000 net acres in the Eagle Ford. has invested strategically to grow its presence in the formation’s highest value oil and condensate core areas. Activity is focused on Atascosa, DeWitt, Gonzales and Karnes counties.

Read more about Marathon in the Eagle Ford


Magnum Hunter Adds Pearsall & Eagle Ford Acreage in Atascosa County

1,885 acres were acquired at a cost of $1,246 per acre
Magnum Hunter Atascosa Pearsall Acreage

Magnum Hunter’s Atascosa Acreage | Click to Enlarge

Magnum Hunter Resources added 1,885 net acres to its holdings in Atascosa County for approximately $2.35 million. The company now has over 7,000 gross (5,000 net) acres in the area with potential for 40 net Pearsall Shale locations.

The Company’s Atascosa core area appears to have an ideal geologic setting for the Pearsall development. Management believes the area to be located within the “wet gas to rich condensate window.” The area is bound by the Charlotte fault trend eight miles to the north and the Karnes fault trend to the south. The Pearsall Shale is located about 2500′ beneath the Eagle Ford Shale and is approximately 500-600′ in thickness. Composed of interbedded organic shale, silica and limestone, the Pearsall Shale is similar in composition to the Eagle Ford Shale.

Read the full press release at

Bakken and Eagle Ford Lease Holders Good Investments?

Eagle Ford acreage is peaking the interest of oil & gas operators. First, Marathon spent over $20,000 per acre and then BHP acquire Petrohawk. The article below details a few reasons why it might be the right time to invest in Eagle Ford Shale operators and the companies who are active in South Texas. The liquids-rich and oil plays of the Eagle Ford and Bakken Shale have become the hottest real estate in the US. [Read more…]