Rosetta Resources Hits Record Production and Proved Reserves in 2013

February 4, 2014 Kirk Eggleston

Rosetta Resources had a record setting year in 2013, increasing total annual production from ~37,000 boe/d in 2012 to 50,000 boe/d. That's an increase of 34%.

The company also increased its total reservesby 39% to 279 million boe.

Approximately 30% or 84 mmboe of the total added reserves came from Rosetta's successful development of the Eagle Ford.

“In 2013, we continued to deliver competitive growth in production and reserves while expanding our operations into a new basin. We remain focused on developing our Eagle Ford assets and committed to fully advancing our Permian Basin operations.”

— Jim Craddock. Rosetta's CEO

Rosetta Resources Eagle Ford Drilling and Completion Initiatives

In total, Rosetta spent ~67% of it's development budget in the Eagle Ford in 2013. $600 million was spent on drilling and completion activity in the Eagle Ford shale, with Rosetta drilling 111 wells and completing 79.

As of late 2013, Rosetta still had a lot of running room in the Eagle Ford. Approximately 23% of the wells the company has drilled in the Eagle Ford were sitting idle and waiting to be completed.

According to the company, well costs improved in the Eagle Ford and have fallen to $6.5 - $7 million for average wells.

Rosetta Resources Expanding in Delaware Basin

Rosetta is also expanding into other areas, including the Delaware Basin. On December 3o, 2013, the company entered an agreement to acquire assets in the basin for $85 million. The purchase covers 5,078 net acres (14,985 gross) in Reeves County.

Rosetta at a Glance in 2013

Total annual production up ~34% to 50,000 boe/d
Eagle Ford added 30% or 84 mmboe to company's reserves
$600 million spent on drilling and completion in Eagle Ford
Eagle Ford wells drilled - 111
Eagle Ford completed wells - 79
Purchase of 5,078 net acres for $85 million in Delaware Basin

Marathon Oil Expects to Exit 2013 Producing 100,000 boe/d from the Eagle Ford

November 5, 2013 R.T. Dukes

Marathon Oil Eagle Ford Acreage Map & Improving Well Performance

Marathon Oil's Eagle Ford production averaged more than 90,000 boe/d at the end of October and is on pace to eclipse more than 100,000 boe/d by year-end 2013. Another important note is that more than 70% of oil production is now being transported by pipelines.

The company's production in the third quarter was roughly double that of the same period in 2012 at more than 81,000 boe/d. Production growth since the second quarter wasn't quite as impressive (up 1,200 boe/d or 3%), but the numbers were tempered by drilling to hold acreage in areas where the company has a lower working interest. A little less than 2/3rds of Marathon's production is considered oil and condensate, with the remainder split between NGLs and natural gas.

Marathon's average spud-to-total depth time averaged 12 days in the third quarter. That's 20% better than the more than 15 days the company spent in the third quarter of 2012. The company has also decreased its drilling and completion costs by more than 20% in the past year. One reason costs are down is 97% of wells in Q3 were drilled from pads. The average number of wells drilled per pad is up as well to 3.3 from 3.1 in the second quarter.

Marathon hit total depth on 70 gross wells and brought 71 gross wells to production during the third quarter. 85% of wells this year have been drilled on 60-acre spacing or less.

Read the full earnings press release at marathonoil.com

Swift Energy's Eagle Ford Well Costs Are Down & IP Rates Are Up

October 9, 2013 R.T. Dukes

Swift Energy Eagle Ford Drilling Savings

Swift Energy has seen its well costs fall and its initial production (IP) rates rise in 2013. Across two areas in South Texas, the company's IP rates are up 15% or more and drilling and completion costs are down 13% or more.

That's exactly what operators want to see and its why several companies are selling assets to fund accelerated development programs in the Eagle Ford.

Swift is selling assets in Louisiana and just last week Forest Oil sold assets in the Panhandle to fund its Eagle Ford operations.

Eagle Ford Drilling & Completion Costs Down

Swift Energy Eagle Ford Completion Costs

In the past year, Swift has driven drilling costs down from more than $4 million to a little more than $3 million. Simultaneously, completion costs have been falling. Since early 2011, completion costs have fallen from $5.3 million to $3.6 million.

Together, those two metrics equate to a savings of 13% or more from last year at this time for the average Eagle Ford well Swift drills and completes.

Watch For More Activity In 2014 From Eagle Ford Operators

Most companies have not released their plans for 2014, but we're starting to hear several major operators will be increasing activity next year. Stories like this one from Swift and $100 oil make the Eagle Ford more attractive than ever.

Pioneer Cuts Back Eagle Ford Dry Gas Drilling Again

August 14, 2012 R.T. Dukes

Pioneer Natural Resources is cutting back its dry-gas development plans in the Eagle Ford from 15% to just 10% of its budgeted activity. Gas drilling is only going forward at this level to secure leases for when gas prices improve.

The company reported earnings for the second quarter at the end of July and is right on target to meet expectations for the year in South Texas. Highlights from the quarter include:

Drilled 34 wells and brought 37 to production
Added three central gathering plants to reach a total of 11 in operation
Lowered dry-gas activity from 15% to 10% of wells budgeted. Gas drilling is only being utilized to hold acreage by production
Expanding the use of White Sand into gas well completions ($700,000 savings)

Pioneer produced approximately 23,000 boe/d in the first quarter, 24,000 boe/d in the second quarter and has provided guidance of 25,000-29,000 boe/d for 2012. Expect the company to realize its biggest production increases in the second half of the year.

Read more about the company's position at our Pioneer Eagle Ford page.

Newfield Q3 2011 Operations Update - Well Results and Costs

October 20, 2011 Kenny DuBose

Newfield Exploration announced its third quarter earnings along with an update on its Eagle Ford operations. The company has a 335,000 acre position in the Maverick Basin across Dimmit, Maverick, and Zavala counties. Drilling is currently focused in the southern portion of the company's acreage where infrastructure is accessible. The company also has a pilot program active in the West Asherton area in Dimmit County. The company has completed 16 wells that have produced 650 barrels of oil equivalent in the first 24 hours. The wells have expected EUR's of 300,000 barrels. Wells have been drilled in as little as 7 days at average costs of $6.6 million for drilling and completion.

The Eagle Ford is the primary drilling target for the company, but Newfield has completed 6 wells targeting the Georgetown formation and 2 wells targeting the Pearsall Shale. The company currently produces more than 7,000 barrels of oil equivalent per day from the area.

Read more at our Newfield Exploration Eagle Ford Profile