Updated Texas Railroad Commission Map of the Eagle Ford Shale

Eagle Ford Shale Well Map

May 2012 Well Map - Click to Enlarge

The Railroad Commission released an updated well map in May. Since the March 15, 2012 version, the number of gas wells on schedule has only grown by 25, but the number of oil wells on schedule has surged by 422 to 1,376.

We’re close to having 2,000 producing wells on record. Take into account the delays in reporting and we’re likely well past 2,000.

The number of permits issued in the play jumped 381 to more than 4,000 over the past two months as well.

We’re running at a blistering pace. 400+ oil wells in two short months is a substantial feat and with ~250 rigs running, we’ll likely replicate the growth of the past two months many times over. [Read more…]

Eagle Ford Shale Well Map – 3,700 Permits – 1,500 Producing – March 2012

Will More Than 2,500 Wells Be Drilled In 2012?
Eagle Ford Shale Well Map

Eagle Ford Well Map - Click to Enlarge

As of March 15, 2012, the Texas Railroad Commission reported almost 3,700 permits had been submitted, with 954 oil wells and 578 gas wells on schedule. That’s up from ~1,900 permits, with 194 oil wells and 249 gas wells on schedule in June of 2011. That means the industry brought on almost 1,100 wells in 9 months. Add in the many gathering delays in 2011 and that number could have been even higher. In 2012, don’t be surprised if as many as 2,500 wells are brought to production.

Also, note the difference in the proportion of oil vs. gas wells. In June of 2011, 56% of producing wells were considered “gas” wells, but in March of 2012 that number had fallen to just 38%. That’s a direct reflection of the commodity markets. Natural gas is at multi-decade lows, while oil has held strong above $100 per barrel. [Read more…]

Goodrich Petroleum Buda Lime Well Results Impress

In Goodrich Petroleum’s operations update from the second quarter, the company announced impressive well results from a horizontal Buda Lime well. The well came on at almost 1,400 barrels of oil per day and 1.5 mmcfd. The well averaged 1,000 barrels of oil equivalent per day over the first 30 days. At $75 oil that $2.25 million in first month. Subtract royalties and operating costs and your looking at a pretty quick payout. Possibly, 3-4 months. That’s a good well!   [Read more…]

Lufkin Industries Gets Eagle Ford Revenue Boost

Eagle Ford Shale oil and liquids production is adding to the bottom line for Lufkin Industries. The company’s oilfield division provides pumping units that help with the artificial lift of fluids to the surface. Oil wells have pumping units installed within months and sometimes days of being completed. As drilling ramps up in South Texas, you can expect Lufkin has a lot of work ahead. [Read more…]