Goodrich Petroleum's Eagle Ford Capital Budget Increases for 2014

Goodrich Petroleum Eagle Ford Acreage
Goodrich Petroleum Eagle Ford Acreage

Goodrich Petroleum Corporation plans to spend more in the Eagle Ford Shale in 2014 than previous estimates indicated. The company's total capital budget remains $375 million for the year; however, the capital budget allotted for the Eagle Ford Shale has been bumped up to $40-million. In October 2013, Goodrich's capital spending in the Eagle Ford was set closer to $30-million.

Goodrich Petroleum plans to drill 9 gross (6 net) wells in the Eagle Ford this year.

Read more: Goodrich Increases 2014 Budget by 50% & Is Shifting to the Tuscaloosa Marine Shale

Goodrich's Eagle Ford Fourth-Quarter 2013 Operations Update

In the fourth-quarter of 2013, the company conducted drilling operations on 4 gross (3 net) wells, of which 1 gross (0.67 net) was in the Eagle Ford.  A total of 7 gross (4.7 net) wells were added to production during the quarter, of which 4 gross (2.7 net) were in the Eagle Ford Shale.

At the end of 2013, Goodrich had 1 rig running in the Eagle Ford. To date, the company has 63 gross (43 net) Eagle Ford wells producting.

Goodrich's Year End Operations Snap Shot

For the year, Goodrich conducted drilling operations on 25 gross (16 net) wells and added 43 gross (24 net) wells to production across it's portfolio, which includes assets in the Tuscaloosa Marine Shale (TMS) and Haynesville Shale.  The wells added to production during the year consisted of 23 gross (15 net) in theEagle Ford Shale.

At the end of 2013, the Eagle Ford represented 16% of the company's proved reserves, while the TMS and Haynesville Shales were 6% and 46% respectively. Look for Goodrich to move aggressively on it's TMS assets in 2014. The company estimates its TMS assets represent 52% of 3P resource potential across the portfolio or 4,460 bcfe (744 mmboe).

Total production was down for the year across the company's portfolio from 85,832 mcfe/d to 76,124 mcfe/d.

Read more at GoodrichPetroleum.com

Forest Oil Eagle Ford Drilling Shifting Gears in 2014 Due to Faulting

Forest Oil Eagle Ford Acreage Map Year-end 2013
Forest Oil Eagle Ford Acreage Map Year-end 2013

Forest Oil is shifting gears in the Eagle Ford, after three gross (1.5 net) wells hit a fault line in the company's southern acreage during the fourth-quarter.

In 2013, Forest reported results on 44 gross (22 net) wells, with a 30-day average gross production rate of 408 boe/d. By contrast, 17 gross (8.5 net) wells drilled during the fourth-quarter had a 30-day average gross production of 304 boe/d. That's about ~25% less for the fourth-quarter, compared to the full year. Both gross production rates included the results from three gross (1.5 net) wells impacted by faulting.

The company had plans for 2014 to more than double its oil production in the Eagle Ford; however, due to faulting's negative impact on production in the fourth-quarter, the company is pulling back the reins.

77% of the company's $290-310 million capital budget was slated for the Eagle Ford, but new estimates have been set at 36%. Forest is re-allocating its budget to liquids-rich opportunities in the Ark-La-Tex, where it has a high degree of confidence in the geology.

Read moreForest Oil Will Double Oil Production in 2014 - Securing Eagle Ford Acreage

We are electing to defer Eagle Ford drilling activity as we complete the reprocessing and interpretation of 3D seismic data and also evaluate the success of recent well completion designs. Importantly, we maintain a balanced portfolio of projects that provides attractive risk-adjusted rate-of-return opportunities. This will enable us to reallocate capital to our liquids-rich opportunities in the Ark-La-Tex to maintain a consistent level of drilling activity in 2014. This decision will result in lower oil growth for 2014; however, we believe this is a prudent capital allocation decision

Forest Oil Eagle Ford Outlook 2014

While seismic is being reprocessed and optimal well design is being evaluated, Forest will reduce the pace of drilling in the Eagle Ford. The company plans to drill 48 gross (24 net) wells, and expects that the net capital allocated to the Eagle Ford for drilling and completion activities in 2014 will total $95 million.

Forest Oil Eagle Ford Highlights

  • Faulting in southern Eagle Ford acreage impacts Forest Oil's allocation of 2014 capital budget and production plans
  • Eagle Ford capital budget slashed from ~$220 million to $95 million in 2014
  • 48 gross (24 net) wells to be drilled in the Eagle Ford in 2014
  • Forest shifting focus in 2014 from Eagle Ford to Ark-La-Tex
  • 25% less 30-day average gross production in Q4 compared to full year 2013
  • Net sales volumes in Q4 2013 of 2,950 boe/d

Read more at ForestOil.com

Matador Eagle Ford Capital Budget to be $318 Million in 2014

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Click to Enlarge

Matador estimates approximately $318 million or 72% of its $440 million 2014 capital budget will be directed to the Eagle Ford Shale in South Texas.

Development of the company assets in the formation is expected to be the primary focus this year.

Matador Drilling and Operating Plans for 2014

The company anticipates completing 49 gross (46.0 net) Eagle Ford wells and has plans to turn 43 gross (40 net) wells to sales in 2014.

The company also plans one exploration well testing the Buda formation.

Matador plans to operate two contracted drilling rigs in the Eagle Ford in 2014.

Matador Acreage Asset Acquisition in Eagle Ford in 2013

Matador expanded in the Eagle Ford in 2013 through the acquisition of 1,720 gross (1,660 net) acres.

Pad & Batch Drilling in the Eagle Ford

In 2013, the company yielded strong production numbers, despite having up to 20% of its production capacity shut in during the fourth quarter of 2013. Matador stopped production on some of its Eagle Ford wells to frack off-setting wells.

The practice referred to as "pad and batch drilling" has been used widely by Matador in the Eagle Ford.

Matador in the Eagle Ford at a Glance for 2014

  • $318 million slated for development in the play
  • 43 gross (40 net) wells turned into sales
  • 1,660 net acres acquired in Eagle Ford in 2013
  • Pad and batch drilling being utilized across the play

Read more: Matador.com