Eagle Ford Well Record for Natural Gas - Escondido Resources II

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

Updated Texas Railroad Commission Map of the Eagle Ford Shale

Eagle Ford Shale Well Map

The Railroad Commission released an updated well map in May. Since the March 15, 2012 version, the number of gas wells on schedule has only grown by 25, but the number of oil wells on schedule has surged by 422 to 1,376.

We're close to having 2,000 producing wells on record. Take into account the delays in reporting and we're likely well past 2,000.

The number of permits issued in the play jumped 381 to more than 4,000 over the past two months as well.

We're running at a blistering pace. 400+ oil wells in two short months is a substantial feat and with ~250 rigs running, we'll likely replicate the growth of the past two months many times over.

The increased pace of drilling and permitting is exactly why we're seeing higher future production estimates almost weekly.

Eagle Ford Shale Well Map - 3,700 Permits - 1,500 Producing - March 2012

Eagle Ford Shale Well Map

As of March 15, 2012, the Texas Railroad Commission reported almost 3,700 permits had been submitted, with 954 oil wells and 578 gas wells on schedule. That's up from ~1,900 permits, with 194 oil wells and 249 gas wells on schedule in June of 2011. That means the industry brought on almost 1,100 wells in 9 months. Add in the many gathering delays in 2011 and that number could have been even higher. In 2012, don't be surprised if as many as 2,500 wells are brought to production.

Also, note the difference in the proportion of oil vs. gas wells. In June of 2011, 56% of producing wells were considered "gas" wells, but in March of 2012 that number had fallen to just 38%. That's a direct reflection of the commodity markets. Natural gas is at multi-decade lows, while oil has held strong above $100 per barrel.

Do you think 2,500 Eagle Ford wells will be drilled this year? Use the comments below to share your thoughts.