Eagle Ford Well Record for Natural Gas - Escondido Resources II

Petrohawk Eagle Ford Shale Map
Petrohawk Eagle Ford Shale Map

An Eagle Ford well record was recently set by Escondido Resources in the Hawkville Field in Webb County. The company completed the Spohn Ranch 1H well with a 6,975 ft lateral and 25 fracture stages. The well came online at more than 16 mmcfd and produced 0.4 Bcf in the first 30 days online. Escondido now has plans for additional development in the area.

Escondido is also pushing forward developing other horizons in South Texas. The company just completed its first horizontal "Escondido" well. Let's hope for the company's namesake this turns out to be a good investment. The first well indicates it will and the company plans seven follow up wells

The Storey 4H well is located in LaSalle County, Texas. in the Tres Encanto Field, an area also referred to as the White Kitchen Field. In its first 30 days of production, the Storey 4H averaged nearly 400 barrels of crude oil production per day along with 1.2 Mmcf of associated gas per day. The well was completed with eight frac stages over a 4,475-foot lateral.

A McMullen County Olmos formation well was also completed.

In its first 30 days, production from the Nichols 3H averaged more than 300 barrels per day and 1.1 Mmcf of associated gas per day. The well is the third successful horizontal oil well the company has drilled in the prolific AWP Field. The well was completed with 13 frac stages over a 6,667-foot lateral. The company is currently drilling three additional wells in the AWP Field.

Escondido currently produces more than 74 mmcfed from the Eagle Ford, Escondido, and Olmos formations across Webb, LaSalle, and McMullen counties. The company owns approximately 60,000 net acres, with Eagle Ford rights on approximately half that amount.

Read the full press release escondidoresources.com

GE - Howard Energy Deal Sets Up Acquisition of Meritage Midstream Services

GE Financial Services has acquired a 30.6% stake in South Texas midstream operator Howard Energy Partners. The amount paid was not disclosed, but we do know what the company is doing with the proceeds. Howard Energy will use the money to partially fund the acquisition of Meritage Midstream Services.  Howard Energy owns more than 280 miles of natural gas pipelines in South Texas.  Meritage Midstream owns 185 miles of pipe, including the Eagle Ford's Escondido Gathering System and the Cuervo Creek Gathering System that transports wet-gas.

When the transaction closes, the new Howard Energy Partners will own more than 450 miles of natural gas gathering pipelines in Dimmit, Frio, Maverick, Webb, and Zavala counties. The system currently gathers 175 mmcfd, but that amount will increase as more wells come online in the coming year.

The company plans to improve facilities to handle production from the Austin Chalk, Eagle Ford Shale, Escondido, Olmos, and San Miguel formations.

Escondido Resources Horizontal Eagle Ford Drilling Results - 2011

Escondido Resources II announced well results from the company's 2011 drilling program in South Texas.  Escondido drilled 17 wells in 2011 with an average IP rate of 7 mmcfd. That is not just Eagle Ford wells. The company has drilled a total of 29 wells since 2009, with 18 in the Escondido formation, 7 targeting the Olmos, and 5 targeting the Eagle Ford Shale. All 17 wells in 2011 were horizontal.  The company primarily operates in Northern Webb County targeting the Escondido and Olmos formations, but also operates acreage in La Salle and McMullen counties.  The company owns the deeper Eagle Ford rights on over half its 60,000 net acres in the area.

The jewel of the Eagle Ford wells came online at 10 mmcfd of wet gas in late 2011 and another well that had good log shows is set to be completed in March.

Read the full press release at escondido-resources.com