Matador’s Eagle Ford Production Breaks Record in Q2 2014

30% Increase in Portfolio-Wide Production - 15,424 boe/d
Matador Eagle Ford Acreage

Matador Eagle Ford Acreage | Click to Enlarge

Dallas, Texas-based Matador Resources hit record production levels portfolio-wide in the second-quarter of 2014, thanks mostly to its Eagle Ford Shale production. The company recorded a 30% quarter-on-quarter production increase to 15,424 boe/d, and a 46% increase year-over-year.

During the quarter, approximately 54% of the company’s natural gas production was liquids-rich natural gas, primarily from the Eagle Ford Shale. That’s  a jump compared to the year ago quarter when Matador’s liquids-rich natural gas cut for its natural gas production was around 33%.

Matador’s Permian Assets Help Boost Company Production

Matador’s most significant oil producing assets are in the Eagle Ford Shale, but the company is also active in the Permian Basin, in West Texas and Southeastern New Mexico. During the quarter, the oil-rich Permian helped Matador achieve record oil production, representing an increase of 21% quarter-on-quarter to ~8,900 b/d.

Read more: Matador Resources Oil Production Up 76% Company-Wide Due to Eagle Ford

Matador’s CEO Joseph Foran, said, “these record production results are directly attributable not only to the continued execution of our Eagle Ford development program but also to the positive, better-than-expected results from our initial wells in thePermian Basin. Notably, these results were achieved despite having as much as 10 to 15% of our total production capacity shut in or restricted at various times during the second quarter while offsetting wells were drilled and completed and pipeline connections were being made.”

Matador Eagle Ford Position Growing Larger in 2014

Since the beginning of the year, Matador has acquired approximately 3,100 gross (2,900 net) acres in South Texas prospective for the Eagle Ford Shale in La Salle, Karnes and southern Atascosa Counties. According to company officials, the acreage has the potential to add up to 75 additional gross drilling locations to the company’s South Texas development program.

Matador Eagle Ford Q2 2014 Operations Update

Matador had two drilling rigs operating in South Texas during the second quarter of 2014. During the quarter, the company completed and began producing from nine gross (6.2 net) Eagle Ford wells, including six gross (5.4 net) operated and three gross (0.8 net) non-operated Eagle Ford wells. Matador completed three operated Eagle Ford wells on its Northcut lease and two wells on its Martin Ranch lease in La Salle County and one well on its Lyssy lease in southern Wilson County. The three non-operated wells were completed on its Troutt lease in La Salle County.

As of August 6, 2014, Matador had two drilling rigs operating in the Eagle Ford. One of the rigs is on the company’s Lyssy lease in southernWilson County and one is on its Pawelek lease in Karnes County. 


Marathon Turns More Eagle Ford Wells to Sales in Q2 2014

Tillman: Double-Digit Eagle Ford Production Growth Expected Through Remainder of 2014
Marathon Eagle Ford Drilling

Marathon Eagle Ford Drilling | Click to Enlarge

In Marathon Oil’s second quarter report released on Tuesday, higher density pad drilling and improved execution techniques were credited for a 55% quarter-on-quarter increase in gross operated wells turned to sales. The average time to drill an Eagle Ford well in the second quarter of 2014, spud-to-total depth, was 13 days – the company’s goal for the year is 11 days.

Marathon’s average net Eagle Ford production was 102,000 boe/d, representing an increase of 26% year-over-year and 6% quarter-on-quarter. Approximately 66% of net production was crude oil/condensate, 16% was natural gas liquids (NGLs) and 18% was natural gas.

Recently, Marathon sold its Norwegian assets for $2.7 billion to re-focus capital investments in the Eagle Ford Shale and other U.S. domestic assets. At the end of the second-quarter, Marathon had approximately $1.1-billion in E&P capital expenditures across its North American asset portfolio.

Read more: Marathon Oil Sells Norwegian Business to Focus on U.S. Assets

Marathon Eagle Ford Enhanced Completion Design

According to company officials, enhanced Eagle Ford completion design is delivering strong preliminary results. Wells with 180-day cumulative production are yielding on average 25%  improvement relative to modeled type curves.

Marathon CEO Lee Tillman said, “we have high confidence in Eagle Ford volumes growth as our well results continue to outperform modeled type curves and deliver strong economics. This quarter we brought 76 gross operated Eagle Ford wells to sales. We expect that momentum to carry forward, generating double-digit production growth quarter-on-quarter in the Eagle Ford for the remainder of 2014.”

Marathon Austin Chalk/Upper Eagle Ford Update

Marathon Oil continued its successful delineation of the Austin Chalk/Upper Eagle Ford for co-development with an initial 15,500 net acres now delineated. During the second quarter, the company brought online three Austin Chalk/Upper Eagle Ford wells, including two in the condensate window: the Children Weston 4H and the Franke well, which had a 30-day initial production (IP) rate of approximately 1,650 boe/d (73% liquids). The third well with a 30-day IP rate of 600 boed (90% liquids) was the first in the black oil window. Nine additional Austin Chalk/Upper Eagle Ford wells are currently being drilled, completed or awaiting first production.