Comstock's Best Eagle Ford Wells Came Online in McMullen County in 2013

February 17, 2014 Kirk Eggleston

In 2013, Comstock completed 63 gross (42 net) Eagle Ford Shale wells, including six wells (3.8 net) drilled in 2012. Completed Eagle Ford Shale wells had an average initial production (IP) rate of 780 boe/d.

Best Producing Comstock Wells - McMullen County, TX

Comstock's best wells in the Eagle Ford were drilled in McMullen County, TX. Average boe/d results for the six best wells are listed below:

Gloria Wheeler C #3H - 1,340 boe/d
Gloria Wheeler C #1H - 1,219 boe/d
Gloria Wheeler D #4H - 1,113 boe/d
Gloria Wheeler A #4H 1,066 boe/d
Gloria Wheeler D #3H 1,054 boe/d
Gloria Wheeler C #2H 1,025 boe/d

All six wells produced more than 1,000 boe/d.

Comstock Company-Wide Drilling and Expenditures

During 2013, Comstock spent $343.6 million on its continuing development and exploration activities and $137.0 million on acreage acquisition costs. Comstock drilled a total of 75 horizontal oil wells (51.6 net) and two horizontal natural gas wells (2.0 net) across the company's assets.

Of the $137 million spent on acquisitions, the company spent $66.5 million on 70% of Ursa Resources’ interest in Eagle Ford assets in Burleson and Washington counties. The deal included one well producing 433 boe/d and 32,000 gross (20,000 net) acres.

Comstock had ~6,300 b/d of crude oil production in 2013. That's up 29% from 2012 when production was ~4,900 b/d. Oil and gas sales increased by 7% in 2013 to $422.6 million from $394.6 million in 2012.

Comstock 2013 Highlights

63 gross (42 net) Eagle Ford Shale wells completed
75 horizontal oil wells (51.6 net) and two horizontal natural gas wells (2.0 net) drilled
Average Eagle Ford completed well had an IP rate of 780 boe/d
Highest producing well was drilled in McMullen County - Gloria Wheeler C #3H - 1,340 boe/d
Spent $343.6 million on its continuing development and exploration
Invested $137.0 million on acreage acquisitions
Crude oil sales volume grew to ~6,300 b/d

Chesapeake's Eagle Ford Production Set to Top 100,000 boe/d by Year-end

November 8, 2013 R.T. Dukes

Chesapeake Eagle Ford Acreage - Drilling Map

Chesapeake is on pace to surpass 100,000 boe/d of net Eagle Ford production in the fourth quarter. Average production in the third quarter was 211,000 gross (95,000 net) boe/d from the play.

Add back Eagle Ford assets sold to EXCO that produced over 6,000 boe/d during the quarter and Chesapeake would have already surpassed the 100,000 barrel mark.

Production is up 82% from the third quarter of 2012 and 11% over the second quarter.

“Our oil assets in the Eagle Ford Shale continue to deliver strong results, prompting us to raise our full-year 2013 oil production guidance by 2 million barrels (mmbbls) to 40 – 42 mmbbls.”

— Mr. Lawler

Chesapeake operated 13 rigs and brought 100 gross wells to sales during the quarter. The company is expected to run more like 20 rigs in 2014.

The average Eagle Ford well brought to sales in the third quarter came online at ~930 boe/d.

The company had 788 producing wells and 117 wells awaiting completion or infrastructure at the end of the quarter.

Read the full press release at chk.com

Halcon Resouces' Record Eagle Ford IP Comes From Step Out Well - Nears Acreage Target

November 6, 2013 R.T. Dukes

Halcon Resources set an initial production record from an Eagle Ford well in Brazos County that is a five mile step out from the nearest producing well. The Stasny-Honza 1H came online producing 1,262 boe/d.

Halcon has three rigs working in the area and plans to have four rigs active through 2014. The company spudded 13 wells and brought 19 wells to production in the third quarter. Net production from the area grew to 6,500 boe/d from 31 wells during the quarter. Eight wells are waiting to be completed and three wells are being drilled.

“Third quarter results were defined by continued expansion of our activities in the Williston Basin, El Halcón and other areas.”

— Floyd C. Wilson, Chairman and Chief Executive Officer

The company continues to work toward and optimal drilling and completion combination. The average time from spud-to-total depth decreased to 14.4 days during the quarter and the average drilling cost per foot decreased 19%. A company record was set by drilling a well with an 8,000 ft lateral in 7.3 days.

Halcon is closing in on its target of leasing 100,000 net acres in the area. The company has secured leases or commitments on 90,000 plus acres to date.

Company-wide more than 40% production growth is expected in 2014. Read the full release at halconresources.com

EOG's Burrow Unit 5H Well Better Than First Reported

August 7, 2013 R.T. Dukes

EOG Eagle Ford Oil Well Record Production

We published details from the Texas RRC completion report related to EOG's record Eagle Ford well, but the company's second quarter operations update proved the well was better than first reported.

EOG reported the well came online at more than 9,200 boe/d. That compares favorably to the 8,600 boe/d that was reported to the commission. Better yet, the well was still producing more than 4,200 barrels of oil per day after 30 days. The well is easily the best in the Eagle Ford to date.

The well easily produced more than 150,000 barrels of oil in its first month online!

Eagle Ford Growth Leads To Company-wide Increase In Guidance

As a result of performance in the company's liquids plays (i.e. Bakken & Eagle Ford), EOG is increasing annual crude oil production guidance from 28% to 35%.

“We have the confidence to raise the bar on EOG’s performance expectations because our outstanding assets perform better and better, quarter after quarter,” said CEO William R. “Bill” Thomas. “EOG expects to achieve these higher goals within our previously stated capex estimate.”

t the end of the second quarter, EOG was producing 173,000 boe/d from the Eagle Ford and had more than doubled initial production rates across much of the play.

The company highlighted several wells across La Salle, McMullen, and Gonzales counties that produced ~1,500 barrels of oil per day or more. The record Burrow 5H well was part of a unit that had two other wells come online at ~3,000 b/d of oil. It's easy to see why the company is increasing its production guidance.

“With wells in our western drilling program following the same trend as those in the east, results from the EOG’s Eagle Ford activity continue to outpace our expectations.”

— Papa

Rosetta Resources Acquires Additional Eagle Ford Interest At Gates Ranch

August 6, 2013 R.T. Dukes

Rosetta Resources Tom Hanks Eagle Ford Lease Map

Rosetta Resources completed 18 Eagle Ford wells in the second quarter and extended its streak of growing production from the play to 14 quarters (3.5 years). The growth didn't come without obstacles. Rosetta's Eagle Ford production was impacted by facilities constraints at Gates Ranch that are expected to last through August and wells that were shut-in for adjacent completions.

Rosetta added to its inventory of development with successful wells in both Live Oak and La Salle Counties. The first well in the 505 acre Lopez Unit in Live Oak County had a seven-day IP of almost 2,000 boe/d (46% oil). The first Eagle Ford well on the 3,500-acre Tom Hanks lease in La Salle County yielded more than 650 boe/d over the first seven days (91% oil). The two areas add 7 and 44 net locations to the company's drilling inventory, respectively. Rosetta also tested a Pearsall Shale well on the Tom Hanks lease that produced 5 mmcfd.

“Rosetta has core asset positions in two of the premier unconventional resource basins in the U.S. which will allow us to further expand our project inventory and efficiently execute our development plans to generate favorable growth and returns in 2013 and beyond.”

— Jim Craddock, CEO

Increased Gates Ranch Working Interest

Rosetta Eagle Ford Asset Map - June 2013

During the second quarter, Rosetta acquired an additional 10% working interest in Gates Ranch for $126 million. The deal increases the company's drilling inventory in the area by 17 net locations and added associated production of 1,800 boe/d. Rosetta now has over 29,000 net acres and a 100% interest in Gates Ranch.

The company also closed the previously announced acquisition of properties in the Permian Basin.