Pioneer’s Eagle Ford Growth Back Weighted – Drilling 2-6 Well Pads

Savings From Utilizing White Sand In Completions Balloons To $1.1. Million Per Well
Pioneer Eagle Ford Production Chart

Pioneer Eagle Ford Production Chart | Click to Enlarge

Pioneer Natural Resources brought on 58 Eagle Ford wells in the first half of the year and expects to bring on 78 wells in the second half. Production growth will be weighted to fourth quarter due to a shift from single-well to multiple-well pad drilling.

Only 45% of wells drilled in 2012 were drilled from pads, but that will grow to 80% in 2013. Wells drilled from pads take longer to bring to production, so the shift has delayed production growth. It takes Pioneer 100-120 days from the time of first spud to production from a three well pad. [Read more…]

Pioneer Natural Resources Expanding Use of Pad Drilling in 2013

Horizontal Wells Will Have Laterals Extending 6,200 ft, From 5,700 ft in 2012
Pioneer Eagle Ford Update Map

Pioneer Update | Click to Enlarge

Pioneer Natural Resources’ (PXD) Eagle Ford drilling will come from centralized pads 80% of the time in 2013. That’s up from 45% of the time in 2012 and will allow the company to drill 130 wells with just 10 rigs. Pioneer saves $600,00-700,000 per well when utilizing pads. Approximately 130 wells were drilled in 2012 with an average of 12 rigs running. [Read more…]

Pioneer Cuts Back Eagle Ford Dry Gas Drilling Again

White sand completions, that save $700,000 per well, are being tested in dry-gas areas of the play
Pioneer Eagle Ford Update Map

Pioneer Update | Click to Enlarge

Pioneer Natural Resources is cutting back its dry-gas development plans in the Eagle Ford from 15% to just 10% of its budgeted activity. Gas drilling is only going forward at this level to secure leases for when gas prices improve.

The company reported earnings for the second quarter at the end of July and is right on target to meet expectations for the year in South Texas. Highlights from the quarter include:

  • Drilled 34 wells and brought 37 to production
  • Added three central gathering plants to reach a total of 11 in operation
  • Lowered dry-gas activity from 15% to 10% of wells budgeted. Gas drilling is only being utilized to hold acreage by production
  • Expanding the use of White Sand into gas well completions ($700,000 savings)

Pioneer produced approximately 23,000 boe/d in the first quarter, 24,000 boe/d in the second quarter and has provided guidance of 25,000-29,000 boe/d for 2012. Expect the company to realize its biggest production increases in the second half of the year.

Read more about the company’s position at our Pioneer Eagle Ford page.

Pioneer Natural Resources (PXD) Grows Eagle Ford Production 15% in Q1

White Sand Completions Continue to Look Promising - Similar Production with $700,000 in Savings

Pioneer Natural Resources continues its focus on lower costs and further improving its Eagle Ford assets.  Along the way, the company grew Eagle Ford production 15% quarter over quarter from 20,000 boe/d to 23,000 boe/d.  Current expectations are for more than 50,000 boe/d in 2014.

Pioneer reported that results continue to hold up on the 45 wells where white sand was used instead of ceramic proppant in completions. The company tested white sand in more shallow areas of the play and has recognized a cost savings of $700,000 per well. If production results hold up, we might see a more significant shift to the use of white sand.

The company has 10 wells waiting to be completed and plans to bring online 125 wells this year. With 26 brought online in the first quarter, we’ll see an increase to more than 30 wells per quarter over the remainder of the year.

You can read more quarterly commentary at our Pioneer Eagle Ford page.

Pioneer Taps the Brakes in the Eagle Ford

Pioneer Natural Resources had planned to grow its rig count to 14 in 2012, but 25% of the company’s development was set for dry gas. With natural gas prices below $3/mmbtu, Pioneer is backing off and delaying the two new rigs until 2013. The company still plans to have 19 rigs running by 2015.

Production also made a considerable jump in the fourth quarter. The company produced more than 20,000 boe/d, compared to 14,000 boe/d in the third quarter. Gathering constraints are being eased and more companies are seeing significant production jumps.  [Read more…]

Pioneer Natural Resources Adds Frack Crew – White Sand Completions – Q311 Ops

Pioneer Natural Resources (PXD) reported strong growth from its Eagle Ford Shale assets when the company operates in partnership with Reliance Industries. The company is currently running 12 rigs in the play and has assembled 2 frack crews solely dedicated to the Eagle Ford. The second crew will be active in Q4 2011. Both crews compliment the company’s two-year third party completion agreement.

Wells are producing a 65% liquids cut that includes oil, condensate, and NGLs. Average wells laterals extend 5,500 ft and completions involve 13 frack stages. Wells are being brought on at restricted rates (16/64ths) to protect against reservoir damage at high flow rates. To date, company is seeing improved declines.

The company’s midstream partnership will continue to build out gathering facilities in 2012 and will begin financing construction through outside sources in the next year. Well costs across the play average $7-8 million, but the company is saving as much as $700,000 per well by utilizing white sand in the more shallow portions of the play.

Production grew quarter over quarter from 8,000 boe/d to 14,000 boe/d and is expected to reach as high as 60,000 boe/d in 2014.  [Read more…]