Matador Resources Oil Production Up 76% Company-Wide Due to Eagle Ford

March 14, 2014 Kirk Eggleston

Matador Resources had a 76% increase in oil production across its portfolio in 2013 from 3,317 b/d - 5,843 b/d. The increase was a direct result of the company's drilling operations in the Eagle Ford Shale. In 2013, Eagle Ford production also contributed ~14.9 mmcf/d, which was ~42% of the company's total natural gas production.

Matador continues to have solid results in the Eagle Ford. Look for the company to make some acreage deals in the play this year.

Matador's Eagle Ford budget for 2014 is $318 million.

Matador Eagle Ford Operations in 2013

During 2013, Matador completed and began producing oil and natural gas from 32 gross (27.6 net) Eagle Ford wells, including 25 gross (25.0 net) operated and 7 gross (2.6 net) non-operated wells. In the fourth-quarter, the Company completed and began producing oil and natural gas from 9 gross (9.0 net) operated and 3 gross (1.1 net) non-operated wells.

Drilling and completion costs went down in 2013, and are connected to refinements in the company's fracking treatments.

“Drilling times and overall well costs have continued to improve in the Eagle Ford, and several recent wells on our western acreage in La Salle County in South Texas have been drilled in as few as eight days from spud to total depth with total drilling and completion costs at or below $6 million. The latest generation of our fracture treatment design, whereby we are pumping more fluid and more proppant while using more perforation clusters and tighter fracture spacing, is also resulting in better well performance, as compared to offsetting wells treated with earlier generation fracture treatment designs. Overall, our operations group is continuing to deliver better wells for less money in the Eagle Ford.”

— Matador CEO, Jospeh Foran

Matador is also seeing positive results from downspacing. To date, the company has now drilled seven 40 to 50-acre spaced wells on its central acreage in Karnes County. Two of these wells flowed at approximately 1,100 to 1,200 boe/d (almost 90% oil), making them two of the best wells drilled by Matador in this area.

Halcón Resources Will Spend 40% of its 2014 Budget in the Eagle Ford - ~$380 Million

March 5, 2014 Kirk Eggleston

Halcon Resource's Eagle Ford Acreage Map

Halcón plans on spending ~$380 million in its East Texas Eagle Ford acreage (El Halcón) in 2014. That's approximately 40% of the company's budget.

At the end of February, 2014, there were 45 Eagle Ford wells producing, 10 wells completing or waiting on completion, and 4 wells being drilled.

Halcón currently has working interests in approximately 100,000 net acres tied to prospective drilling in the Eagle Ford formation in East Texas. The Company plans to operate an average of 3 rigs and spud 40 to 50 gross operated wells in 2014.

“Our focus in 2014 is on drilling wells in the sweet spots of our de-risked acreage in the Williston Basin and El Halcón. We will also begin drilling wells on our newly acquired acreage located in what we believe to be the core of theTuscaloosa Marine Shale. We are primed for growth and have a deep drilling inventory. We are committed to maintaining capital discipline and dedicated to improving capital efficiency.”

— Floyd Wilson, CEO

In 2014, the company plans to drill wells with an average lateral length of 7,500 feet, as tests continue to determine the most efficient completion design. In 2013, the company found there was a direct correlation between lateral length to EUR for wells completed with a sufficient volume of proppant.

Halcón's Fourth-Quarter Eagle Ford Production

Halcón operated an average of four rigs in El Halcón during the fourth quarter, spudded 13 wells and put 9 wells online. The company produced an average of 7,138 boe/d in El Halcón during the fourth quarter. That's an increase of 43% over the third-quarter of 2013.

Halcón Eagle Ford Highlights

~$380 million will be spent in Halcón's East Texas Eagle Ford acreage (El Halcón) in 2014
Halcón plans to operate an average of 3 rigs and spud 40 to 50 gross operated wells in 2014 in El Halcón
43% increase in Eagle Ford production to 7,138 boe/d in the fourth-quarter of 2013
At the end of February, 2014, 45 Eagle Ford wells were producing, 10 wells were being completed or waiting on completion and 4 wells were being drilled

Pioneer Hits Record Q4 Eagle Ford Production - 40,000 boe/d

February 13, 2014 Kirk Eggleston

Pioneer set a record for its fourth-quarter 2013 production in the Eagle Ford Shale, averaging 40,000 boe/d. That's up ~14% from 35,000 boe/d in the fourth-quarter of 2012.

Forty-one wells were placed on production during the quarter in the Eagle Ford. Full-year 2013 production averaged 38,000 boe/d. That's an increase of ~35% compared to average production of 28,000 boe/d in 2012.

In the fourth-quarter, the Eagle Ford contributed to Pioneer's net recoverable resource potential, which increased from more than 8 billion boe to more than 10 billion boe.

Pioneer's Eagle Ford Outlook in 2014

Pioneer plans to spend $545 million in the Eagle Ford in 2014. The breakdown includes $480 million for it's horizontal drilling program and $65 million for infrastructure and land acquisitions.

The company plans on drilling 110 wells in the Eagle Ford Shale. Most of these wells will be drilled utilizing three-well and four-well pads. Full-year 2014 production is forecasted to range from 45,000 boe/d to 49,000 boe/d, an estimated increase of 18% - 29% compared to full-year 2013.

Of the 110 Eagle Ford wells planned, 45 will be targeting the Upper Eagle Ford as part of the downspacing program in the play. Pioneer's first test well in the Upper Eagle Ford continues to perform in-line with offset Lower Eagle Ford wells.

“Our main objective is to translate the resource growth we delivered in 2013 to strong production growth. To accomplish this, we are increasing our horizontal rig count in the northern Spraberry/Wolfcamp from five rigs at the end of 2013 to 16 rigs by the end of the first quarter. We will also continue an active drilling program in the southern Wolfcamp joint venture area and the Eagle Ford Shale. As a result, we expect a 14% to 19% increase in production in 2014 compared to 2013.”

— Scott Sheffield, CEO

For the first quarter, Pioneer expects to place approximately 26 horizontal wells on production in the Eagle Ford, predominately in the second half of the quarter. Production from these wells is anticipated in the second quarter.

Pioneer's Eagle Ford Highlights

Q4 2013 record production - Up 14% quarter to quarter to 40,000 b0e/d
2013 average production of 38,000 boe/d
$545 million capital budget slated for Eagle Ford in 2014
2014 production forecasted between 45,000 boe/d - 49,000 boe/d
110 wells to be drilled with 45 wells slated for the Upper Eagle Ford
Eagle Ford contributed to Pioneer's net recoverable resource potential - 8 billion boe to 10 billion boe

Chesapeake Eagle Ford Spending $1.82 Billion in 2014

February 7, 2014 Kirk Eggleston

Chesapeake has set its 2014 capital budget at $5.2 billion - $5.6 billion. That's down ~20% from the midpoint of the company's 2013 capital budget.

Approximately 35% of the budget will go to the Eagle Ford in 2014.

Low end estimates put that figure at about $1.82 billion. The company plans to run 15 - 18 operated rigs in the Eagle Ford throughout the year.

Chesapeake Plans on Divesting Acreage in 2014 and Increasing Production

In 2014, Chesapeake plans to reduce its capital expenditures, and continue divesting noncore assets. In July 2013, the company sold 55,000 net Eagle Ford acres to EXCO Resources for $680 million.

“While our guidance today does not reflect the impact of potential divestitures, we continue to pursue opportunities to high-grade our portfolio through asset sales. We believe these transactions will be value accretive and enable us to further reduce financial complexity and improve overall leverage. Over the last eight months, we have conducted an extensive review of Chesapeake’s portfolio. Due to the size and quality of the asset base, I am confident that by remaining focused on our strategic priorities we can deliver long-term production growth per debt-adjusted share of 5 – 9% annually, while maintaining a disciplined capital spending profile.”

— Doug Lawler, Chesapeake's CEO

Average daily production estimates for 2014 are 680,000 - 695,000 boe/d company-wide, with an estimated 1,300 gross operated wells to coming online in 2014, or approximately 115 fewer wells than in 2013.

Chesapeake December 2013 Production and 2013 Well Inventory

For the month of December, net production of an Eagle Ford well was 90,000 boe/d.

At the end of 2013, 109 gross operated wells had been drilled in the Eagle Ford, but were awaiting completion. That figure represents the third highest total of un-completed wells at the end of 2013 in Chesepeake's play interests, with the Utica Shale and Marcellus Shale ranking at 195 and 112 respectively.

Chesapeake at a Glance

2014 Capital Budget in Eagle Ford is $1.82 billion
Chesapeake plans on divesting more noncore assets in 2014
Net production of an Eagle Ford well in December 2013 was 90,000 boe/d
109 gross operated wells awaiting completion in Eagle Ford at the end of the year
680,000 - 695,000 boe/d company-wide, with approximately 1,300 gross operated wells to sales in 2014

Sanchez Energy Expects Eagle Ford Development Spending to Near $600 Million

January 15, 2014 R.T. Dukes

Sanchez Energy has set its capital budget for 2014 at $650-700 million.

Approximately 95% ($617-665 million) will be spent on drilling and completing wells and 90% of that ($556-599 million) will be spent in the Eagle Ford.

Sanchez expects to double production in 2014 and average 21,000-23,000 boe/d.

“All of our core Eagle Ford positions are performing at or above our expectations and are in full scale development mode. We made tremendous strides last year strategically and operationally.”

— Tony Sanchez III, President and Chief Executive Officer

Sanchez acquired Tuscaloosa Marine Shale (TMS) acreage in 2013, but the play is not expected to materially contribute to the company's bottom line in 2014. Sanchez will spend approximately $65 million drilling exploration wells in the TMS this year.

Read the full press release at sanchezenergycorp.com