Sun Resources Acquires 5,014 Net Eagle Ford Acres

Ursa Acreage Map
Ursa Acreage Map

Australian-based Sun Resources announced in late May of 2014 that it is buying a 50% non-operated working interest in 10,028 gross (5,014 net) Eagle Ford acres in Bastrop County's Badger Oil Project area. Company officials said the acreage was acquired from the project's operator, Houston-based Ursa New Ventures LLC, who will retain a 50% working interest in the acreage. The companies did not disclose the purchase price, but Sun said in a company statement that it will use existing cash to fund the transaction.

This acquisition comes on the heels of another Australian-based company, Sundance Energy, announcing this week a $33-million deal to acquire 11,000 net Eagle Ford acres in Dimmit and Maverick counties. That deal increased Sundance's acreage position in the play to 19,500 net Eagle Ford acres covering 295 gross (196 net) drilling locations.

Read more: Sundance Energy Acquires 11,000 Net Eagle Ford Acres for $33-Million

Sun and Ursa Development Plans

The Badger Oil Project area is located offset to the Giddings oil field, a prolific Austin Chalk oil field, that has produced over 1-billion bbls of oil. Sun and Ursa are planning to spud the first horizontal test well before the end of November 2014, prospective for the Eagle Ford and the Austin Chalk formations, to determine the commercial oil potential. The first well in the Badger Oil Project is projected to be a 5,500 foot lateral drilled within the Eagle Ford section.


Penn Virginia Seeks to Expand Eagle Ford Position

Penn Virginia Eagle Ford Operations Update - Dec 2013
Penn Virginia Eagle Ford Operations Update - Dec 2013

During the first quarter of 2014, Penn Virginia added 6,400 net acres at a cost of $3,000 per acre, and in January, the company sold its Eagle Ford Shale natural gas gathering assets for $100 million in-part for reinvestment in the play.

Penn Virginia currently has 125,300 gross acres (85,900 net) in the Eagle Ford, and anticipates on growing its acreage to a minimum of 100,000 net acres.

Due to continued success in adding to our Eagle Ford Shale acreage position, we are increasing our leasing capital expenditures guidance for the year.
— CEO, H. Baird Whitehead

It can be assumed with great confidence that Penn Virginia will strike a deal for more Eagle Ford acreage in the very near future.

Read MorePenn Virginia Sells Eagle Ford Midstream Assets to ArcLight Capital

Penn Virginia Eagle Ford First Quarter Operations Update

Penn Virginia's Eagle Ford production was up 15% quarter over quarter, from 13,145 boe/d to 15,152 boe/d at the end of the first quarter of 2014. Eagle Ford production represented ~72% of Penn Virginia's record breaking total production for the quarter of 21,133 boe/d.

During the quarter, the company saw positive results from two of its Upper Eagle Ford test wells in Lavaca County. One of the wells had an initial production (IP) rate of 2,165 boe/d. Company officials say that the two wells have the highest wellhead flowing pressures they have seen to date in the Eagle Ford, with GORs (gas-oil-ratios) of 5,000 - 6,000 standard cubic feet per barrel.

Initial testing of our adjacent Upper / Lower Eagle Ford Shale wells commenced in the first quarter and the initial results are strong. We saw initial production in excess of 2,000 BOEPD with a very high flowing pressure. Longer term testing will be necessary in order to fully understand the upside associated with the Upper Eagle Ford Shale, but we are very optimistic about the play.
— Whitehead

Penn Virginia estimates in both the upper and the Lower and the Upper Eagle Ford that approximately 1,510 gross drilling locations remain. Of that figure, 68% of those locations are prospective for the Lower Eagle Ford.

During the quarter, the company completed 16 (12.9 net) operated wells and participated in the completion of two (0.9 net) outside operated wells. At the end of the quarter, the company had a total of 19 (11.1 net) wells completing or waiting on completion and six (3.4 net) wells being drilled.


Aurora Oil & Gas's Production Increases in the First Quarter of 2014

Aurora Oil & Gas Production Chart
Aurora Oil & Gas Production Chart

Eagle Ford-focused Aurora Oil & Gas, which will soon be absorbed by Baytex Energy, had first quarter estimated gross production of 28,600 (21,100 net) boe/d. That's a 54% increase over the first quarter of 2013, and a 16% increase over Aurora's fourth quarter production in the play.

In February of 2014, Baytex Energy agreed to purchase Aurora for $2.6 billion. When the deal closes, it will include 22,000 net contiguous acres in the Sugarkane Field. The acreage is located in what is commonly referred to as the "sweet spot" or oil window of the Eagle Ford Shale.

Read more: Baytex Energy - Aurora Deal for Eagle Ford Assets - $2.6 Billion

Aurora Oil & Gas Eagle Ford Q1 2014 Operations Update

During the first quarter, 32 gross new Eagle Ford wells (8.6 net) were put into production for a total of 419 gross producing wells (111.7 net). A total of 57 gross new wells (15 net) were spudded during the first quarter of 2014, and at the end of the quarter, drilling operations continued on 10 wells, while 29 wells were awaiting fracture stimulation.

Aurora's net acreage covers Karnes, Live Oak and Atascosa counties. Revenue from oil and gas sales in the first quarter was $182 million.

Aurora Oil & Gas Eagle Ford Q1 Highlights

  • 54% increase over Q1 2013 to 28,600 (21,100 net) boe/d
  • 16% increase Q4 production
  • Baytex Energy agreed to purchase Aurora for $2.6 billion
  • 32 gross new Eagle Ford wells (8.6 net) were put into production
  • 57 gross new wells (15 net) were spudded
  • Revenue from oil and gas sales in the first quarter was $182 million