Murphy Oil's Eagle Ford Production Hits Milestone

Murphy Oil Eagle Ford Production
Murphy Oil Eagle Ford Production

Murphy Oil surpassed 25,000 boe/d at the end of 2012 and annualized production averaged 15,000 boe/d. With an exit rate above 25,000 boe/d, the company is in a nice position to meet or exceed its production target of 30,000 boe/d in 2013.

Murphy is working 10 rigs and three frack crews around the clock. The company has drilled 216 wells to date and has brought 163 to production. Total time spent to drill and case wells is averaging 11-13 days across the play.

Most of the crude the company produces is moved by truck (86%) -

Roger Jenkins, COO stated "There's many places to unload the trucks, many depots, many options. We're doing very well with our crude. Murphy's land situation is not a condensate one. For black oil, 41, 42 degree API, we've been getting a $13 positive margin to WTI there for some time. And people want our crude in that area and we're doing very well with the marketing quality of crude because we have very little condensate in our business."

The company will continue to push downspacing to 80-acres across all three areas operated in the Eagle Ford. Testing down to as little as 40-acres per well might take place late in 2013.

Watch for test results from the company's first Pearsall Shale well near the end of the first quarter of 2013. Two horizontal Pearsall wells are planned in Atascosa County in the first half of the year.

Expect to see operational costs come down as the company begins drilling four wells from each pad. Pad drilling will allow for the Murphy to allocate facilities in a more efficient manner.

Rosetta Resources Plans Eagle Ford Development at 55-Acre Spacing at Gates Ranch

Rosetta Eagle Ford Map | June 2012
Rosetta Eagle Ford Map | June 2012

Rosetta Resources continues to evaluate its well spacing tests across the Eagle Ford, but results to date show no interference from wells tested at 425-565 ft apart or 50-65 acre spacing. Without signs of interference, the company is going forward with development at 55-acres spacing. The lower down-spacing interval will allow the company to drill 428 wells across its Gates Ranch properties; a 29% increase.

Rosetta expects it had approximately 800 net wells to be completed throughout its Eagle Ford position at the end of 2011. Over 30% of those are located in the Gates Ranch area of Webb County where the company has two rigs running continually. The company's rigs are spread throughout the Briscoe Ranch, Central Dimmit County and the company's Karnes County acreage.


Marathon's Eagle Ford Production Grows 50% in Three Months

Marathon Eagle Ford Acreage Map Q2 2012
Marathon Eagle Ford Acreage Map Q2 2012

Marathon Oil's second quarter production levels in the Eagle Ford grew 50% from the first quarter of the year. 50% quarter over quarter. In the second quarter, Eagle Ford production averaged 21,000 boe/d, with 75% attributable to crude/condensate and 11% attributable to NGLs. By the end of July, production had stretched to more than 31,000 boe/d. Marathon is on pace for 50% quarterly growth again.

2012 will be marked as the year in which the company hit its stride in development of the play. Through the first half of the year, the company has started drilling on 107 wells and brought 72 to production. The company has completed more than 210 miles of gathering lines and five central battery plants, with five more in progress. As of the second quarter, the midstream build out had allowed the company to move 60% of its crude production through pipelines.

Marathon Testing Down Spacing at 40-acres

MRO Eagle Ford Down Spacing Pilots
MRO Eagle Ford Down Spacing Pilots

Marathon is also testing optimal well spacing. The company has ten spacing pilots planned and active. Five of the pilots are producing at 40 to 100-acre spacing and five more are planned at 40 to 80-acre spacing. A few things happen when wells can be drilled at tighter spacing intervals:

  • Recovery rates rise
  • More wells can be drilled from a single pad, lowering total surface disturbance
  • Well costs fall with the efficiencies of more centralized operations

Expect to hear more at the end of the year from Marathon and others in regards to acreage spacing. Also listen for results from other tests involving lateral placement, stimulation design, and toe placement of the well.

Marathon Drilling Times Drop to 23 Days

By our count, the company averaged 18 rigs running in the second quarter and reported drilling 61 gross wells, with 50 brought to production. The company plans to lower its rig count for the remainder of the year, but will still meet its well targets. Marathon can lower the rig count and drill the 230-240 wells planned because the company has lowered its spud to spud drilling time to 23 days from more than 40 days less than a year ago. At the end of July, the company was running 22 rigs, but plans only call for only 18 rigs to run through the remainder of the year.

The company also closed the $750 million acquisition of Paloma Partner's Eagle Ford Assets on August 1st.

Cabot Oil & Gas 400 ft (55-acre) Spacing Test Yields Best Well To Date

Cabot Oil Gas Eagle Ford Shale Map
Cabot Oil Gas Eagle Ford Shale Map

Cabot Oil & Gas reported initial results from its two well 400' (55-acres) spacing test and plans to drill additional wells. The best of the two wells provided the highest initial IP rate of any of the company's 33 wells to date. The second well is trending higher than the average of the company's program to date.

Downspacing across the play is looking more and more viable in the volatile oil and the condensate trends of the play.

Cabot now plans to drill a second set wells utilizing 400 ft spacing to continue its evaluation. I suspect we'll know more by the end of the third quarter and we'll know if the company will shift its development program by early 2013.

Read the full quarterly press release at

EOG Resources Ups Liquids Forecast - Testing Further Downspacing

EOG Resources is gaining more confidence in the Eagle Ford and its other liquids plays. The company has increased its liquids growth projections for the entire company from 30% up to 33% in 2012. Eagle Ford wells continue to exhibit improving recoveries as well flow rates hold up as the company drills at tighter spacing densities.

Our confidence level in the Eagle Ford is very high. Even after we implemented denser well spacing earlier this year, individual well performance remains remarkably strong. In fact, based on ongoing completion refinements, 30-day crude oil production rates from recent wells have increased, Papa said.

Production results and very strong 30-day flow rates from our Eagle Ford wells drilled on tighter spacing indicate we are effectively improving our completions.

Find individual well results and more comments at our EOG Resources Eagle Ford Shale page.