Magnum Hunter Signs Option To Sell Pearsall & Eagle Ford Assets ~$25 Million

MHR Turns Focus to the Marcellus and Utica Shales
Magnum Hunter Resources Acreage Map

Magnum Hunter Resources Acreage Map | Click to Enlarge

Magnum Hunter (MHR) has granted New Standard Energy, an Australian company, the option to acquire Pearsall Shale and Eagle Ford Shale assets in Atascosa County.

New Standard paid $75,000 for the option and will pay an additional $15 million in cash and $9.5 million in equity.

In total, Magnum Hunter will receive a little less than $25 million for ~5,200 net acres and 300 boe/d of production from five wells. New Standard has until January 21, 2014, to exercise the option. [Read more…]

Marathon Oil’s Eagle Ford Production Jumps 11% – Other Plays Look Promising

Eagle Ford Spud To Total Depth Drilling Time Falls To 12 Days
Marathon Oil Core Eagle Ford Acreage

Marathon Oil Core Acreage | Click to Enlarge

Marathon Oil’s Eagle Ford production jumped 11% to 80,000 boe/d during the second quarter.

Marathon drilled 82 gross Eagle Ford wells and brought 70 wells to production over the three month period. Marathon averaged more than three wells per Eagle Ford pad and 85% of its wells were drilled from pads in the second quarter. The company’s spud to total depth drilling time as fallen to 12 days and spud-to-spud time averaged 18 days. [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…]

Goodrich Petroleum’s Eagle Ford Drilling Time Down To 10 Days

Thick Pay Zone Allows GDP To Drill Horizontal Lateral Faster
Goodrich Petroleum Eagle Ford and Pearsall Activity Map

Goodrich Petroleum Eagle Ford & Pearsall Activity Map | Click To Enlarge

Goodrich Petroleum has driven its drilling time down to ten days for wells with 6,000 ft laterals. That equates to 13 days from spud to rig release and 20 days spud-to-spud.

That’s almost 60% less than what Goodrich was doing two short years ago. Faster drilling has led to a larger number of drilled, but uncompleted wells. Goodrich now has 9 gross (6 net) wells waiting to be completed. [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…]

Penn Virginia & Magnum Hunter Eagle Ford Deal Worth $401 Million

Penn Virginia Pays Approximately $12,000 Per Acre
Penn Virginia Eagle Ford Map

PVA – MHR Eagle Ford Map April 2013 | Click to Enlarge

Penn Virginia (PVA) has reached an agreement with Magnum Hunter Resources to acquire the company’s Eagle Ford properties in Gonzales and Lavaca counties for $401 million. Magnum Hunter will retain 7,000 net acres in Atascosa, Fayette, and Lee counties. [Read more…]

Sanchez – Hess Reach Eagle Ford Deal For $265 Million

Deal Looks Attractive For Sanchez At ~$6,000 Per Acre
Sanchez Energy Maverick Area Map

Sanchez Energy Maverick Area Map | Click to Enlarge

Sanchez and Hess have reached a $265 million agreement for 43,000 net acres in Dimmit, Frio, La Salle, and Zavala counties in the gas condensate and oil window of the Eagle Ford. Sanchez also mentioned potential in the Austin Chalk, Buda Limestone, and Pearsall Shale. [Read more…]

Cabot Oil & Gas More Confident in the Eagle Ford & Pearsall

Eagle Ford Downspacing Results Positive - Pearsall Lateral Location Being Evaluated
Cabot Eagle Ford & Pearsall Shale Map

Cabot Eagle Ford & Pearsall Shale Map | Click to Enlarge

Cabot Oil & Gas exited 2012 with more confidence in the Eagle Ford at 400 ft well spacing and more knowledge about the Pearsall Shale. [Read more…]

Murphy Oil’s Eagle Ford Production Hits Milestone

Production Volumes Set to Double From 2012 To 2013
Murphy Oil Eagle Ford Production

Murphy Oil Eagle Ford Production | Click to Enlarge

Murphy Oil surpassed 25,000 boe/d at the end of 2012 and annualized production averaged 15,000 boe/d. With an exit rate above 25,000 boe/d, the company is in a nice position to meet or exceed its production target of 30,000 boe/d in 2013.

Murphy is working 10 rigs and three frack crews around the clock. The company has drilled 216 wells to date and has brought 163 to production. Total time spent to drill and case wells is averaging 11-13 days across the play. [Read more…]

Carrizo Plans Pearsall Shale Test – Added 2,000 Acres in Q3

CRZO has Pearsall Shale potential across 30,000 net acres in South Texas
Carrizo Eagle Ford and Pearsall Map

Carrizo South Texas Eagle Ford Map | Click to Enlarge

Carrizo Oil & Gas will test a Pearsall Shale well in late 2012. The Eagle Ford Shale is the company’s primary focus in Frio, La Salle, McMullen, and Atascosa counties, but the Pearsall could add additional resource to the company’s portfolio. The first test will spud in late November 2012 in Frio County. Just a couple of weeks ago, Cabot Reported Pearsall Shale Well Results that looked promising. Carrizo is following suit.

Carizzo also added 2,000 acres in La Salle County during the third quarter of 2012. The company now has more than 48,000 net acres prospective for the Eagle Ford. That acreage is predominately located in La Salle County, but stretches across three neighboring counties as well. The Pearsall is prospective on 30,000+ acres of the company’s position, but it will take several exploration wells before the company knows where the play has liquids potential. Dry gas wells aren’t going to be the target if natural gas prices stay low. [Read more…]