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…]

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