Shell entered the Eagle Ford in a big way over the past two years. The company has built a 250,000 acre Eagle Ford Shale position in South Texas. Representatives are also quoted as saying the company spent a little over $1 billion ($4,000 per acre) to put the position together. The largest lease Shell operates includes the Harrison Ranch where Shell was rumored to have spent close to $10,000 per acre for the over 100,000 acre ranch in Dimmit County, TX.
The latest quote saying Shell spent a little over $1 billion for the 250,000 acres means the $10,000 per acre for Harrison Ranch was just a rumor or that Shell acquired the other 150,000 acres at a price low enough to round down to $1 billion. Either way, the company has put together a respectable position to build on its other unconventional gas positions in the US Lower 48. The company has operated a tight gas position in the Pinedale Field of Sublette County, Wyoming and Marcellus Shale gas assets acquired when the company completed the Shell – East Resources acquisition mid-year 2010. [Read more…]