Until recently, drilling activity in Lee County, TX has paled in comparison to other counties in the oil maturity window of the play, but now activity may begin picking up.
Austin-based Venado Oil & Gas has ramped up its operations in the county, and is seeing positive results. Other major companies with skin in the game in Lee County include EnerVest/EV Energy Partners, Apache and Clayton Williams. Depending on how well Venado does in the area may translate into increased activity from other players.
Eagle Ford Geology in Lee County
The geology of the Eagle Ford formation in Lee County has historically been less conducive to production when compared to Fayette, Gonzales, and DeWitt counties. In general, the formation is thinner and has a higher clay content than the more active areas of the play.
Venado's Lee County Eagle Ford Operations
In early April of 2014, Venado revealed new and improved fracture stimulation designs were yielding estimates of ultimate recovery (EUR) of more than 400,000 barrels of oil per well in the company's "Horseshoe Project" in Lee County. The company also completed in April the first “simulfracture” stimulation for the East Eagle Ford trend, whereby parallel horizontal wells were fracture stimulated simultaneously compared to single horizontal well completions.
“We are now hitting our stride in our East Eagle Ford project. We will be adding a second rig to the project this month to accelerate and capitalize upon our technical and operational improvements,” We are now hitting our stride in our East Eagle Ford project. We will be adding a second rig to the project this month to accelerate and capitalize upon our technical and operational improvements.”
Based on its Eagle Ford operations in the southern part of the trend, Venado believes simulfractured wells will provide a 15 percent to 25 percent increase to base case single well EURs. The locations of Venado's wells in Lee County are in and around Lincoln, TX.
Read more at vogllc.com