Eagle Ford Rig Count at 65

January 27, 2017 Elizabeth Alford

**Eagle Ford Operators Put Rigs Back Online**

The Eagle Ford Shale rig count gained four this week, with our data showing 65 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, rumors are swirling about Swift Energy as they plan to layoff more employees while moving office locations.

Eagle Ford Oil & Gas Rigs

Seven rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.39/mmbtu.

58 Eagle Ford rigs were targeting oil with WTI oil prices dipped slightly to $53.17.

A total of 58 rigs are drilling horizontal wells, one are drilling directional wells and seven are vertical.

Karnes County leads this week with 14 rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

Many Oil and Gas Workers Still Unemployed

RRC Facing Budget Challenges

Fracking Boosts Local Economies

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Eagle Ford Rig Count Climbs

January 22, 2017 Elizabeth Alford

The Eagle Ford Shale rig count climbed this week, with our data showing 61 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, the Texas Railroad Commission is facing a budget crunch as oil and gas prices continue to lag.

Eagle Ford Oil & Gas Rigs

Nine rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.20/mmbtu.

52 Eagle Ford rigs were targeting oil with WTI oil prices increasing slightly to $53.22.

A total of 52 rigs are drilling horizontal wells, one are drilling directional wells and nine are vertical.

Karnes County leads this week with 13 rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

RRC Facing Budget Challenges

RRC’s Sitton Blasts EPA for Unnecessary Regulations

Swift Energy Cuts 56 Houston Jobs

Anadarko to Sell Eagle Ford Assets

What is the Rig Count?

Swift Energy Cuts 56 Houston Jobs

January 18, 2017 Elizabeth Alford

Rumors are swirling about Swift Energy as they plan to layoff more employees while moving office locations.

Swift Energy Co. emerged from Bankruptcy in April, followed by a major turnover in senior leadership. The latest company shakeup involves cutting more jobs as they move their Houston offices.

56 jobs will be cut as the company moves from its current location in the Greenspoint area to 575 N. Dairy Ashford Road, suite 1200, on or around Jan. 22, according to a letter to the Texas Workforce Commission. The letter says that the jobs will be cut between March 11 and March 31.

In one online forum dedicated to Swift layoffs, some expressed anger at the company’s management and speculated that they are looking to sell the company.

In November, Swift executives announced they had entered into an agreement to sell the Lake Washington field in South East Louisiana to Hilcorp Energy, in order to focus more on opportunities in the Eagle Ford. The sale closed in early December and the details included:

Cash consideration of $40.0 million upon closing
Approximately 14,000 net acres in Plaquemines Parish, includes 23 producing wells
Net sales of approximately 1,160 barrels of oil equivalent per day (97% oil)

Swift Energy Company is an independent oil and natural gas exploration and production company primarily focused on the Eagle Ford trend of South Texas. The company website says they have approximately 70,000 net acres and over 500 identified drilling locations in the Eagle Ford.

RRC Facing Budget Challenges

January 17, 2017 Elizabeth Alford

The Texas Railroad Commission is facing a budget crunch as oil and gas prices continue to lag.

RRC Chairman Christi Craddick is hoping the Texas Legislature will move to fully fund the agency during its current session, according to Midland Reporter-Telegram. The agency is funded mostly by oil and gas activity, which has suffered severe declines since prices crashed two years ago.

Craddick is looking for ways to augment the falling revenue, which has taken a toll on the agency’s personnel department. She said the agency’s number of employees drop from 1500 in the 1990’s to 690 today. The jobs shortage presents a huge challenge for the agency, because the work still has to be done.

One alternate source of revenue could potentially come from a natural gas utility tax, which could be diverted directly to the Railroad Commission.

In August, Craddick revealed details this week on the Texas Oilfield Relief Initiative, a new project designed to make the state’s energy regulatory body more efficient and effective. The initiative is designed to ensure public and environmental protections while also reducing the regulatory administrative burden on industry.

“Our idea is, make it easier for more people to continue to produce. Make it easier for them to have more people out on the ground drilling, and have less paperwork. And what does that do long-term for the state? Job creation is important to this state. Oil and gas provides about 30% of the jobs in Texas.”

— Railroad Commission Chairman, Christi Craddick.

Some details of the Texas Oilfield Relief Initiative that will reduce administrative burdens include:

Identify agency reports and filings that can be reduced or eliminated
Amend rules to modify gas well deliverability reporting requirements
Reduce the need for G-10 filings except for surface commingled production
Allow a calculated well shut-in pressure to be provided when filing Form G-10 for gas wells
Amend production requirements for marginal and stripper wells
Revise “Active Oil Well” definition from ten barrels of oil (BO) per month for 3 consecutive months to five BO per month for 3 consecutive months or any reported production in each month for a consecutive 12 month period (SWR 15)
Revise “Active Gas Well” definition from 100 mcfg per month to 50 mcfg per month or any reported production in each month for a consecutive 12 month period (SWR 15)
Implement a revised internal inspection priority system
Identify counties in which the usable quality water protection depth is constant
Issue guidance for implementation of the Texas Environmental, Health & Safety Audit Privilege Act
Eliminate forms no longer useful to the Commission’s regulatory functions to reduce regulatory administrative burden on staff and industry
Simplify the complete duplication of a drilling permit application with a sworn statement of no changes to the original application

In the following video, Commissioner Craddick talks about the Oilfield Initiative.

Anadarko to Sell Eagle Ford Assets

January 16, 2017 Elizabeth Alford

Anadarko announces plans to sell its interest in 318,000 Eagle Ford acres.

Anadarko Petroleum Corporation (NYSE: APC) announced today it has agreed to sell its Eagle Ford Shale assets for approximately $2.3 billion to Sanchez Energy Corporation and Blackstone Group LP.

“Upon completion of the acquisition, we will triple our exposure to the Upper and Middle Eagle Ford trends that have been successfully developed by the Company at Catarina. The Upper and Middle Eagle Ford sections thicken in Southern Dimmit County, where the majority of the acquired leasehold is concentrated. Upon closing the transaction, we believe we will have locked up the core of the trend within the volatile oil window. With the ability to duplicate the cost structure of our Catarina and Maverick operations throughout the Comanche Eagle Ford Asset, we expect to further improve operating efficiencies while enhancing our capability to achieve sustainability of well cost reductions over time.”

The transaction is expected to close in the first quarter of 2017 and details include:

Approximately 318,000 gross operated acres in Dimmit and Webb counties
Current production of approximately 67,000 Boe/d (70% liquids)
Proved reserves of approximately 300 MMBoe (70% liquids, 75% proved developed)
Estimated total resource potential of over 1,100 MMBoe
Significant near-term, low-risk production growth driven by 132 gross drilled but uncompleted wells
More than 4,000 Eagle Ford drilling locations, which provides over 20 years of economic drilling inventory
Sanchez Energy will fully fund its 50% of the acquisition through a combination of cash on hand and commercial bank and preferred equity commitments at a newly formed non-recourse subsidiary
Blackstone will fund its 50% of the acquisition through a separate entity via equity and commercial bank commitments
Anadarko’s sponsored master limited partnership, Western Gas Partners, LP (NYSE: WES), will continue to own and operate its midstream assets in South Texas and is expected to benefit from drilling commitments made by the buyers in conjunction with this transaction

Despite the decline, the Eagle Ford is still a prized space in the industry with many productive years ahead. Researchers from the UT’s Bureau of Economic Geology say that the 400-mile field has seen just a fraction of its ultimate activity and their new study predicts that another 100,000 wells can still be drilled. In October, Venado Oil and Gas, LLC and global investment firm KKR announced that they are joining together to develop assets in the Eagle Ford Shale.