Wolfberry — Eagle Ford Shale News — Eagle Ford Shale Play

Clayton Williams production, revenues and operating costs for the first-quarter of 2014 were down compared to the first-quarter of 2013, after two significant divestitures over the course of the last year. Overall production was 250 boe/d below analyst estimates for the first-quarter of 2014 according to company officials.

In March 2014, Clayton Williams sold all of its interests in certain non-core Austin Chalk and Eagle Ford assets. Due to the divestiture, production for the sold assets in the first-quarter of 2014 went down 47% compared to the first-quarter of 2013. Daily production for the sold assetsin the first-quarter of 2014 was 385 boe/d.

Across the company's portfolio, production costs decreased 16% to $26.4 million in the first-quarter, compared to the first-quarter of last year. Company officials attributed this decrease primarily to another acreage asset divestiture in the company's Andrews County Wolfberry Play in April 2013.

In Reeves and Burleson Counties in Texas, two wells experienced drilling and completion complications, which company officials say accounted for production delays of 400 boe/d.

After giving affect to asset sales, Clayton Williams saw a total production increase per BOE of 25% across its' portfolio in the first-quarter of 2014 compared to the first-quarter of 2013. Oil and NGL production increased to 2,756 b/d and 378 b/d consecutively. Gas production decreased 455 Mcf/d.

Clayton Williams Eagle Ford Operations Update

Clayton Williams continues to see consistent results from its horizontal Eagle Ford Shale play in the northern portion of its legacy Austin Chalk acreage block in Robertson, Burleson and Lee Counties, Texas. The Company has nine horizontal Eagle Ford wells in this area that have been on production for 30 or more days. The peak 30-day production rate for these wells has averaged 574 BOE per day (96% oil).

Clayton Williams' First Quarter Highlights

Overall Q1 production down 250 boe/d from analyst estimates
47% production decrease in divested Austin Chalk and Eagle Ford assets in Q1 2014 compared to Q1 2013
Q1 drilling and completion complications in Reeves and Burleson Counties in Texas accounted for production delays of 400 boe/d
Oil and NGL production increased to 2,756 b/d and 378 b/d consecutively across portfolio in Q1 2014
Gas production decreased 455 Mcf/d in Q1 2014

Read more at claytonwilliams.com

U.S. crude oil production has risen over 10% in the past two years. We expect this growth will continue with booming oil plays like the Eagle Ford Shale in Texas and the Bakken Shale in North Dakota. Add the Niobrara Shale, the Avalon Shale, Wolfberry, and Bone Spring in West Texas, with the Mississippian oil Play and Oklahoma and we're set to see domestic crude coming to market.

"Between 2008 and the end of 2010, domestic crude oil production rose more than 11% and production of natural gas liquids (NGLs) grew by more than 12%. The increase in US production made up for about half of the decline in petroleum imports (1.7 million barrels per day) over this time period. Of this production, about 94% was delivered not by Big Oil, but by many independent oil and gas producers (such as Energen, Linn Energy, NGAS Resources, and Questar)."

"In 2010 domestically produced oil and NGLs hit 7.5 million barrels per day, the highest output in eight years. The increase in production led to a reduction of net imports of crude oil and NGLs to 9.4 million barrels per day, the lowest figure in 13 years."

"A report by Credit Suisse analysts in March forecasted that the US will be producing an additional 2.5 million barrels per day by 2016, based on the development of new onshore fields (such as the Bakken shale in North Dakota and the Eagle Ford shale in Texas) and deepwater projects in the Gulf of Mexico."

Read the full news release at bizmology.com