Comstock Resources Focused on the Eagle Ford in 2014 - Almost $400 Million Planned

December 18, 2013 R.T. Dukes

Comstock Resources will spend $394 million of the company's $450 million 2014 budget in the Eagle Ford.

The company will spend $264 million drilling 59 gross (40.2 net) wells in the South Texas Eagle Ford, $80 million completing wells in the South Texas area, and $50 million to drill 10 gross (5.6 net) East Texas Eagle Ford wells (Burleson County) for a total of $394 million.

Comstock Resources East Texas Eagle Ford Map

The East Texas Eagle Ford acreage located in Burleson County was acquired from Ursa Resources in late November 2013.

Outside of the company's drilling budget in the Eagle Ford, Comstock will spend $27 million in the Tuscaloosa Marine Shale and $29 million on facilities, recompletions, other capital projects.

As a result of budget allocations, oil production is expected to grow to 11,200-12,600 b/d and natural gas production is expected to fall to ~115 mmcfd.

Read the company's full press release at comstockresources.com

Goodrich Increases 2014 Budget by 50% & Is Shifting to the Tuscaloosa Marine Shale

October 16, 2013 R.T. Dukes

Goodrich Petroleum Eagle Ford and Pearsall Activity Map

Goodrich Petroleum will spend 44% or $100 million of the company's $255 million budget in 2013 in the Eagle Ford. That will change in 2014 when the company will spend just $30 million in the play.

The company plans to spend almost 50% more on development in 2014, but almost 75% or $300 million of the company's $375 million budget will be spent in the Tuscaloosa Marine Shale (TMS).

The Eagle Ford has helped drive an increase in oil production, but Goodrich only controls 45,000 gross (32,000 net) acres in the play. In the TMS, Goodrich controls more than 300,000 net acres across Louisiana and Mississippi. The shear size of the company's position makes the potential much greater.

Read the company's full release regarding its 2014 budget at goodrichpetroleum.com

Swift Energy Will Fund Accelerated Eagle Ford Development With Louisiana Sale

August 9, 2013 R.T. Dukes

Swift Energy Eagle Ford Production Chart

Swift Energy has abandoned plans to find a joint venture partner in the Eagle Ford in favor of selling assets in Central Louisiana. Executives note the lack of premium placed on their Eagle Ford assets in the market. They view the Eagle ford as the best assets in the company and prices simply aren't what they were the past few years.

Instead, the company will sell assets in Louisiana. As a result, the capital budget in the Eagle Ford was increased by $50 million and Swift plans to maintain a two rig program through the rest of 2013.

Company-wide production was down slightly in the quarter and Eagle Ford production was down to flat. There were gas gathering constraints in Webb County during the quarter, but Eagle Ford production had rebounded to grow 10% in July.

“Our performance in the prolific Eagle Ford shale trend in South Texas continues to improve according to our plans. When compared to 2012, our 2013 South Texas well results have delivered higher initial production rates, larger estimated ultimate recoveries (“EURs”) and lower costs. Additionally, during July our average daily production rate in our South Texas core area was approximately 10% higher than our second quarter 2013 average production rate.”

— Terry Swift, CEO

During the second quarter, Swift drilled 14 operated wells targeting the Eagle Ford. A total of six wells were drilled in La Salle County, four in McMullen County, and two in Webb County. As for completions, the company brought 15 Eagle Ford wells and one Olmos well online during the quarter.

Production fell slightly in the second quarter, but had rebounded to increase 10% to almost 18,000 boe/d in July.

Watch for additional improvements in costs and initial production rates. Swift has lowered costs by 13-16% in the Artesia and N. AWP areas while improving initial production by 15-18%. That's a win-win.

Now that the company has turned its focus to developing the Eagle Ford and not simply seeking a JV partner, don't be surprised to see significant growth in the coming quarters. The company already expects 15-20% production growth in the area in 2014.

Louisiana Eagle Ford Well Result Promising

December 19, 2011 R.T. Dukes

Indigo's recent well results indicate the commercial extent of the Eagle Ford could extend into Louisiana. Indigo recently completed a successful well in Rapides Parish, La, that flowed over 500 boe/d over a 24 hour period. The company plans to sell an operated interest in its assets in early 2012 and then begin development of the play. For reference, here's a simplified cross section of the Eagle Ford from Texas to Louisiana.

The company's first horizontal well targeting the Louisiana Eagle Ford Shale (“LA Eagle Ford”) formation has been tested resulting in a new oil discovery in Central Louisiana. The Bentley Lumber 34H #1 located in Rapides Parish, LA originally spud back in late July 2011 and recently flowed at a rate of 543 barrels oil equivalent (80% oil) during a 24 hour test period. This first LA Eagle Ford horizontal well in the region was successfully drilled without the need for an intermediate casing string through the shale interval and involved a 15-stage fracture stimulation of the target interval. The hydrocarbon mix is light, sweet 45 API gravity oil, with liquids rich natural gas (1520 Btu and 11 GPM natural gas liquids). The oil is currently being trucked to sales and the gas is temporarily being flared with state approval.
Indigo II has assembled nearly 260,000 net acres in the LA Eagle Ford play and has identified several locations to drill additional horizontal wells in 2012. Prior to doing so, it intends to secure a joint venture operating partner sometime in early 2012 to bring horizontal oil expertise and capital to this large, oil shale development project. Indigo will also be closely following new developments by Encana, Devon and others to the east of its acreage position. Both operators have successfully drilled and completed horizontal wells in the same formation and have announced additional new drilling permits. It is anticipated that 5 to 7 rigs could be operating in this emerging oil play during the 1st quarter of 2012.