Frigid temperatures could have an impact on operations in the Eagle Ford as the mercury hovers below the freezing mark for most of Friday morning. The wintry mix began hitting the counties covering the Eagle Ford formation late on Thursday night.
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.
Anadarko increased its resource estimate for its Eagle Ford Shale properties to 600 million barrels of oil equivalent (mmboe) at its analyst day. The company also reported having before tax rates of return of more than 100% at as little as $2 natural gas prices, as long as oil is $100 per bbl. The average well across the company’s acreage produces 65% liquids (40% oil & 25% NGLs). [Read more…]
Chesapeake Energy is planning to reduce the company’s natural gas rig count across the U.S. and shut in natural gas production in response to low prices. The operated, dry gas, rig count will decrease by 50 rigs to 24 in 2012 from 75 in 2011. The company is also shutting in production of 0.5 Bcfd. That’s a little less than 1% of U.S. supply, but it’s a good start in helping remedy $2 natural gas prices.
The rigs will be moved to liquids-rich areas that are supported by more valuable oil, condensate, and NGL production. The Eagle Ford is a likely beneficiary. While the change shouldn’t be substantial, don’t discount the value of the play’s liquids production in times of low gas prices. Chesapeake is likely one of many that will make similar moves. [Read more…]
Talisman Energy recently completed an Eagle Ford Shale Acreage Acquisition from SM Energy and now has two in house completion crews that will administer fracking operations across the play. The decision to build the Talisman led hydraulic fracturing crews delayed oil & gas operations earlier in the year, but the company should be able to ramp up activity without the inflation other operators are experiencing. Economic results have been strong and this is another sign that Talisman and the like are planning to be here for the long haul. [Read more…]