Most Read Eagle Ford Stories in 2012

Eagle Ford Shale Well Map
Eagle Ford Shale Well Map

As we reviewed 2012, we compiled a list of the most popular stories. We thought you might enjoy them as well:

We wish everyone a happy and prosperous 2013. In the past year, we watch the EagleFordShale.com reach expand to almost half a million readers. If you are looking to grow your business in South Texas, make sure to visit our Eagle Ford Advertising page.

 

Chesapeake's Operating Plan | Natural Gas Loss = Eagle Ford Gain

Chesapeake Energy is planning to reduce the company's natural gas rig count across the U.S. and shut in natural gas production in response to low prices. The operated, dry gas, rig count will decrease by 50 rigs to 24 in 2012 from 75 in 2011. The company is also shutting in production of 0.5 Bcfd. That's a little less than 1% of U.S. supply, but it's a good start in helping remedy $2 natural gas prices. The rigs will be moved to liquids-rich areas that are supported by more valuable oil, condensate, and NGL production. The Eagle Ford is a likely beneficiary. While the change shouldn't be substantial, don't discount the value of the play's liquids production in times of low gas prices. Chesapeake is likely one of many that will make similar moves.

This reallocation will result in increased expenditures in certain of Chesapeake’s liquids-rich plays, including the Eagle Ford Shale, Utica Shale, Mississippi Lime, Granite Wash, Cleveland, Tonkawa, Niobrara, Bone Spring, Avalon, Wolfcamp, and Wolfberry. The company estimates that approximately 85% of its 2012 total net operated drilling capital expenditures will be invested in its liquids-rich plays.

The Barnett Shale and the Haynesville Shale are the two plays that will be affected the most by the changes. Chesapeake will only run six rigs in the Haynesville and six in the Barnett. The company will keep 12 rigs active in the dry gas portion of the Marcellus Shale

Read the entire news release at chk.com

GeoResources Sells Atascosa Acres - Focusing in Fayette and Gonzales

GeoResource sold 1,800 acres in Atascosa County in late 2011 and plans to focus its efforts in southwest Fayette County and northeast Gonzales County. The company has drilled seven wells to date and has two rigs that will continue Eagle Ford drilling. A recent well in Gonzales County reached a total measured depth of 14,700 ft in 24 days. The company's current well costs run $8.5-9 million and batch completions will be used to help drive costs down further.  

GeoResources is also completing a seismic survey that will help the company identify drilling locations int the Austin Chalk, Buda, Edwards, Eagle Ford, and Georgetown formations.

Operated Eagle Ford Area Highlights

  • 4 gross wells spud in fourth quarter 2011
  • 4 gross wells currently waiting on completion
  • 2 wells currently drilling (1 spud in late December 2011 and 1 in early January 2012)
  • 3 gross wells currently producing
  • All 3 completed in second and third quarters of 2011
  • 48% average working interest
  • Average first 30 day production rate of 409 boe/d
  • 20 to 25 gross wells planned to spud in 2012

 

Goodrich Petroleum Plans Eagle Ford Growth in 2012

Goodrich Petroleum's Eagle Ford assets will be the beneficiary of $155 million in capital spend on 29 gross (19 net) wells in 2012. The company's assets are centered in Frio and La Salle counties.

Oil directed activity will be concentrated in the Eagle Ford Shale trend with $155 million allocated to 29 gross (19 net) wells (which assumes a combination of 6,000 to 9,000 foot laterals), and the Tuscaloosa Marine Shale trend, with $20 – $45 million allocated to 4 gross (2 net) to 6 gross (4 net) wells.

 

The Company estimates oil volumes to grow by 130 – 160% in 2012 versus 2011, which will drive very strong cash flow growth.  Natural gas volumes are expected to be flat to slightly down, while overall production on a Mcfe basis is expected to increase by 10 – 15% over 2011.  Oil volumes are estimated to grow to approximately 5,000 barrels per day as the Company exits 2012.

Read the entire press release at goodrichpetroleum.com

Forest Oil Dropping to 1 Rig in 2012

Forest Oil will develop its Eagle Ford assets utilizing 1 rig in 2012. That's down from two running in past months. The company plas to spend a total of $550-600 million next year, with most of its budget allocated to the Granite Wash and other properties in the Texas Panhandle.

For the year ended December 31, 2012, Forest intends to invest between $550 million and $600 million for capital activities (excluding capitalized interest, capitalized stock-based compensation, and asset retirement obligations incurred) as detailed below. The exploration and development capital budget is expected to include five to six operated rigs in the Texas Panhandle, two operated rigs in East Texas / North Louisiana, one operated rig in the Eagle Ford Shale Play, and one operated rig in the Permian Basin.

Read more at forestoil.com