Karnes County Explosion Proves Costly

Chesapeake Released 2015 Q1
Encan Corp Q1

Almost one month after a fiery oil rig explosion in Karnes county, Encana Corp released final figures to state regulators.

Encana Corp. reported that the accident released over 760,000 pounds of crude oil and possibly tens of thousands of pounds of gas and into the air. The company estimates that the crude was worth more than $197,000.

The county sheriff called the May 19th accident the ‘worst environmental disaster in more than 20 years’, leaving trees, fields, roads and houses covered in oil and displacing numerous families.

Related: Karnes County Accident Worst in 20 Years

The clean up has been a massive effort and has included subcontractors to control runoff, pump out nearby stock tanks, evaluate livestock, take soil samples, evaluate vegetation, clean homes and repair nearly half a mile of roadway on FM 792.

First quarter results for Encana show improved production and lower costs for its Eagle Ford operations. Highlights include:

  • Drilled its fastest three wells to date and reduced normalized drilling costs by 15%
  • Reduced drilling and completion costs by $1 million per well
  • Promising early results from new wells in an area known as the Graben
  • Base optimization efforts reduced decline rates by 50%
  • 27 net wells were drilled
  • Liquids production averaged 36,000 bbls/d

Read more at encana.com