Eagle Ford Regional Rig Count at 267 - Nov 30, 2012

Chesapeake Eagle Ford Rig Map
Chesapeake Eagle Ford Rig Map

Eagle Ford Shale drilling dropped one rig to settle at 267 units running in the region. La Salle County was the biggest mover during the week. Five rigs moved in to make it the most active county in the play with 41 rigs.

During the week, we highlighted Chesapeake's improving wells. In the third quarter of 2012, the company brought 124 wells to production, with 115 of those reaching peak production rates greater than 500 boe/d. The company had 43 wells produce more than 1,000 boe/d. In the first quarter of 2012, only 8 of 60 wells produced more than 1,000 boe/d. That's a significant improvement in just six months. The better news is Chesapeake won't be alone. Companies will continue to improve well and completion designs.

Eagle Ford Oil & Gas Rigs

The natural gas rig count fell two rigs to 53. Natural gas prices reached a 2012 high last week, but fell to less than $3.60 on Friday. Natural gas storage numbers surprised the market on Thursday. An injection was reported when most expected withdrawal season to continue. Heating season is here, so injections are uncommon. Prices responded by falling almost $0.30.

The oil rig count gained one rig to reach 214 running in the area. WTI crude futures were almost unchanged for the fifth week in a row. Oil was trading at just over $88 per barrel on Friday. Eagle Ford crude priced at $100.50/bbl on the 30th of November. Light crude and condensate in the area traded at $85.50 and $84.50, respectively.

There are 254 horizontal rigs running in the region. La Salle County leads development with 41 rigs running. Karnes with 35 rigs, McMullen (28), Gonzales (23), Webb (23), Dimmit (21),  DeWitt (20), Live Oak (12), Fayette (9) and Lavaca (8) round out the top Eagle Ford counties.

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Eagle Ford Rig Count by Operator

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by SmithBits and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count and/or Smith Service Co's (Schlumberger) Smith Rig Count.

Eagle Ford Shale Drilling by County