Clayton Williams: No Eagle Ford Drilling at $50

Clayton Williams 2016 Q2

Clayton Williams 2016 Q2

Clayton Williams Energy, Inc (CWEI) won’t be drilling in the Eagle Ford Shale Play until crude prices move considerably higher than $50.

Related: Clayton Williams Stops Eagle Ford Drilling | Eagle Ford Shale Play

In a second quarter earnings call, CWEI executives reported a net loss of $80.9 million while production costs dropped to $19.2 million, versus $23.1 million in 2015.

For their Eagle Ford operations, the company announced they wouldn’t  be drilling in the Eagle Ford as long as prices stay around the $50 mark. For the second quarter, average daily production in the Eagle Ford was 1,661 Bbls for oil compared to 3,238 Bbls in Q2/2015 and average daily production for natural gas was 308 Mcf and 566  for 2015

The past 18 or 19 months which, frankly, feels like about 10 years for me and most of us here. The actions we took early on to cut overhead, to cut operating expenses in the field and eventually to also suspend capital spending pretty much to preserve liquidity we feel like paid off over time. During the year, we drilled a couple of other wells in the Eagle Ford, but most of the year we were pretty much idle when it came to capital spending and we were exploring options for the Company.
— President Mel Riggs