EnerVest Shifts from Barnett to Eagle Ford

Enervest Buys Eagle Ford Assets

EnerVest Energy Partners announced today that it is expanding its Eagle Ford Shale holdings and pulling back from the Barnett Shale.

Related: EnerVest Grabs Eagle Ford Assets for $1.3 Billion

Houston-based EnerVest Energy Partners have closed on an acquisition of Eagle Ford oil and natural gas properties in Karnes County. The $58.7 million includes 5.8 percent working interest in 9,151 gross acre.

Highlights include:

• Eagle Ford and Austin Chalk reserves and drilling opportunities
• Estimated proved reserves of approximately 6.4 Mmboe and probable reserves of 1.3 Mmboe, net to EVEP (based on recent strip prices)
• 22 percent proved developed and 61 percent crude
• Current net daily production of approximately 1.0 Mboepd (73 percent crude)
• Over 200 economic, scalable and repeatable proved and probable horizontal drilling opportunities
• Additional possible drilling locations
• Attractive drilling economics at current strip prices
• Significantly higher margins and higher cash flow from acquired Eagle Ford Shale properties as compared to the divested Barnett Shale properties (based on recent strip prices)

“We believe that this position in the Eagle Ford Shale affords many attractive, self-funding, near-term drilling opportunities and will increase our crude production by approximately 25 percent in 2017.”

— Michael Mercer, EV Energy president and CEO.

EV Energy Partners is a a publicly traded affiliate of Houston’s EnerVest Ltd. Since 2015, EnerVest has been gobbling up acres and assets in the Eagle Ford including:

• May 2016
  • Purchased 7,056 net acres from BlackBrush Oil and Gas LP
  • The assets include 341 drilling locations and produce 5,170 barrels of oil equivalent per day
• April 29, 2016
  • 4,198 net acres from affiliates of San Antonio-based GulfTex
  • 256 drilling locations
  • Produce 8,568 barrels of oil equivalent per day
• Fall 2015
  • $125 million purchase of Houston-based Alta Mesa Holdings LP’s
  • 1,760 net acres with 278 drilling locations and 7.8 million barrels of oil equivalent of reserves
  • Producing 2,200 barrels of oil equivalent per day

Learn more at evenergypartners.com

Halcón Resources Exits the Eagle Ford

Halcón Resources Exits the Eagle Ford

Halcón Resources has announced it will sell its Eagle Ford assets (“El Halcón”) to Hawkwood Energy for $500 million.

The sale should close by early March and will help fund the company’s movement into the Delaware Basin.

Related: Halcón to Resume Eagle Ford Drilling

Through the deal, Denver-based, Hawkwood will acquire approximately 81,000 net acres primarily located in Burleson and Brazos counties, which are currently are producing approximately 6,000 net boe/d.

“We are excited to acquire these high quality assets to further build our strong position in the East Texas Woodbine and Eagle Ford plays,” said Patrick Oenbring, Chairman and Chief Executive Officer of Hawkwood.  “These new assets provide us with expanded opportunities to leverage our low cost operating infrastructure and Eagle Ford and Woodbine technical expertise to create value. We continue to seek additional similar opportunities to acquire quality assets to add to our East Texas position.”

Halcón emerged from bankruptcy last fall, where it was able to eliminate approximately $1.8 billion in debt. Company executives had previously announced they would resume Eagle Ford drilling in 2017 but made a sharp turn recently to move into the Delaware Basin.

This is Hawkwood’s initial investment into the Eagle Ford region of South Texas. The company has focused primarily on its 1110,000 East Texas acres in Brazos, Madison, Leon, and Robertson Counties with 70+ wells.

Read more at hawkwoodenergy.com

Eagle Ford Rig Count at 65

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.

Read more: Swift Energy Cuts 56 Jobs

A total of 701 oil and gas rigs were running across the United States this week, an increase of eight over last week. 145 rigs targeted natural gas (three more than the previous week) and 555 were targeting oil in the U.S. (five more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 351 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

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.

Read more at Bakerhughes.com

Eagle Ford Rig Count Climbs

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.

Read more: RRC Facing Budget Challenges

A total of 693 oil and gas rigs were running across the United States this week, 35 over last week. 142 rigs targeted natural gas (six more than the previous week) and 551 were targeting oil in the U.S. (29 more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 342 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

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?

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.

Read more at bakerhughes.com

Swift Energy Cuts 56 Houston Jobs

Swift Energy Cuts Jobs

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

Related: Swift Shifts Assets to be Bigger Eagle Ford Player

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.

Read more at swiftenergy.com