ZaZa Energy Continues Laying Groundwork for Eagle Ford Growth

ZaZa Energy CEO Takes $1 Dollar Salary for Two Years
Eagle Ford & Eaglebine Map

Eagle Ford & Eaglebine Map | Click to Enlarge

ZaZa’s first quarter 2014 average combined production in the Eagle Ford (South Texas) and Eaglebine (East Texas) was 630 boe/d. The company has re-focused its attention to the Eaglebine, after divesting 10,300 net Eagle Ford acres in July of 2013 to a subsidiary of Sanchez Energy for $28.8 million. Approximately 82% of ZaZa’s first quarter production came from the Eaglebine.

Read more: ZaZa Selling Eagle Ford Assets to Sanchez Energy For $28.8 Million

During the first-quarter, the company continued to position itself for growth across its portfolio. In May of 2014, ZaZa announced that its CEO, Todd Brooks, will be taking a salary of $1 dollar for the next two years. During that time frame, Brooks’ compensation will consist of equity grants or other equity-related compensation.

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Penn Virginia Seeks to Expand Eagle Ford Position

Penn Virginia Acquired 6,400 Net Acres in First Quarter of 2014
Penn Virginia Eagle Ford Operations Update - Dec 2013

Penn Virginia Eagle Ford Operations Update – Dec 2013 | Click to Enlarge

During the first quarter of 2014, Penn Virginia added 6,400 net acres at a cost of $3,000 per acre, and in January, the company sold its Eagle Ford Shale natural gas gathering assets for $100 million in-part for reinvestment in the play.

Penn Virginia currently has 125,300 gross acres (85,900 net) in the Eagle Ford, and anticipates on growing its acreage to a minimum of 100,000 net acres.

CEO H. Baird Whitehead said, in a company statement, “due to continued success in adding to our Eagle Ford Shale acreage position, we are increasing our leasing capital expenditures guidance for the year.”

It can be assumed with great confidence that Penn Virginia will strike a deal for more Eagle Ford acreage in the very near future.

Read MorePenn Virginia Sells Eagle Ford Midstream Assets to ArcLight Capital

Penn Virginia Eagle Ford First Quarter Operations Update

Penn Virginia’s Eagle Ford production was up 15% quarter over quarter, from 13,145 boe/d to 15,152 boe/d at the end of the first quarter of 2014. Eagle Ford production represented ~72% of Penn Virginia’s record breaking total production for the quarter of 21,133 boe/d.

During the quarter, the company saw positive results from two of its Upper Eagle Ford test wells in Lavaca County. One of the wells had an initial production (IP) rate of 2,165 boe/d. Company officials say that the two wells have the highest wellhead flowing pressures they have seen to date in the Eagle Ford, with GORs (gas-oil-ratios) of 5,000 – 6,000 standard cubic feet per barrel.

Whitehead said, “initial testing of our adjacent Upper / Lower Eagle Ford Shale wells commenced in the first quarter and the initial results are strong. We saw initial production in excess of 2,000 BOEPD with a very high flowing pressure. Longer term testing will be necessary in order to fully understand the upside associated with the Upper Eagle Ford Shale, but we are very optimistic about the play.”

Penn Virginia estimates in both the upper and the Lower and the Upper Eagle Ford that approximately 1,510 gross drilling locations remain. Of that figure, 68% of those locations are prospective for the Lower Eagle Ford.

During the quarter, the company completed 16 (12.9 net) operated wells and participated in the completion of two (0.9 net) outside operated wells. At the end of the quarter, the company had a total of 19 (11.1 net) wells completing or waiting on completion and six (3.4 net) wells being drilled.


EOG Resources Boosts Eagle Ford Oil Production 62% Year Over Year

EOG's Net Eagle Ford Production in the First Quarter - 207,000 boe/d
EOG Eagle Ford Acreage Map

EOG Eagle Ford Acreage Map | Click to Enlarge

Eagle Ford Producer EOG Resources increased its crude oil production in the play by 62% in the first quarter of 2014 over the same reporting period last year. Portfolio-wide, company officials said total US crude oil and condensate production increased by 45%, with the Eagle Ford contributing the most to production volumes. As of March 31st, 2014, EOG’s net Eagle Ford production was 207,000 boe/d.

In the first quarter, EOG entered its third and final phase of its joint venture agreement with ZaZa Energy in the Eaglebine. Plans were accelerated in the fourth quarter of 2013 to move into the second phase, which was a strong indication of the company’s confidence from production in the area.

Read more: EOG Resources – ZaZa Energy Move into Third and Final Phase of Joint Venture Agreement

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Aurora Oil & Gas’s Production Increases in the First Quarter of 2014

8 Net Ealge Ford Wells Put Into Production, 15 Net Wells Spud
Aurora Oil & Gas Production Chart

Aurora Oil & Gas Production Chart | Click to Enlarge

Eagle Ford-focused Aurora Oil & Gas, which will soon be absorbed by Baytex Energy, had first quarter estimated gross production of 28,600 (21,100 net) boe/d. That’s a 54% increase over the first quarter of 2013, and a 16% increase over Aurora’s fourth quarter production in the play.

In February of 2014, Baytex Energy agreed to purchase Aurora for $2.6 billion. When the deal closes, it will include 22,000 net contiguous acres in the Sugarkane Field. The acreage is located in what is commonly referred to as the “sweet spot” or oil window of the Eagle Ford Shale.

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Newfield Energy’s Eagle Ford First Quarter Production and Operations Update

Five Eagle Ford Wells Placed Online in Q1 2014
Newfield Energy Eagle Ford Production

Newfield Energy Eagle Ford Production | Click to Enlarge

Newfield Energy’s net production in the Eagle Ford was 11,000 boe/d in the first quarter of 2014. That’s down slightly from the company’s fourth quarter 2013 production when well pads in the company’s West Asherton area first came online.

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Mitsui Eagle Ford Carry of SM Energy Will End in Q2 2014

SM Energy First Quarter 2014 Production Up in Operated and Non-Operated Acreage 17% and 2% Consecutively
SM Energy Eagle Ford Acreage

SM Energy Eagle Ford Acreage | Click to Enlarge

SM Energy saw net production increases in both its’ operated and non-operated acreage of 17% and 2% consecutively. In the second quarter of this year, SM Energy expects the drilling and completion carry provided under its acquisition and development agreement with Mitsui to be exhausted. SM Energy made this announcement in December 2013, when the company released it’s 2014 capital budget.

In 2011, SM Energy entered a joint venture with Mitsui, whereby 39,000 net acres were sold to Mitsui for total commitments of $680 million (>$17,000 per acre).

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