Eagle Ford Oil Production Back on Top

May 31, 2017 Elizabeth Alford

Karnes County, in the Eagle Ford Shale, resumed its top spot for oil production volumes for March 2017.

The Texas Railroad Commission (RRC) produced the March production statistics last week, showing the state produced 77,262,815 barrels of crude oil and 608,006,175 mcf of natural gas from oil and gas wells. This was very close to the preliminary volumes report for March 2016, which was 77,702,710 barrels.

Karnes County led the state in oil production, producing 6,969,260 bbls. Other Eagle Ford counties in the top ten included Dewitt, La Salle and McMullen. For the last few month, Midland County edged out Karnes for the top spot, but fell back in March to second place.

Production Highlights

Total production for the last year was 980 million barrels of crude oil and 7.9 trillion cubic feet of total gas.
March 2017 crude oil production averaged 2,492,349 barrels daily, compared to the 2,506,539 barrels daily average of March 2016. (preliminary)
Total gas production averaged 19,613,102 mcf a day, compared to the 20,592,813 mcf daily average of March 2016. (preliminary)
Currently 177,719 oil wells and 90,804 gas wells operating in the state.

Things have been looking up in the Eagle Ford. During the first quarter of 2017, the Texas Railroad Commission (RRC) reported a spike in the number of drilling permits issued. The agency granted 3257 new drilling permits, more than double the number of this time last year.

Eagle Ford Shale Rig Count Contracts

May 27, 2017 Elizabeth Alford

The Eagle Ford Shale rig count contracted this week, with operators pulling two rigs from production. 99 rigs are running across our coverage area by midday Friday.

In recent Eagle Ford News, Earthstone Energy, Inc. has resumed its Eagle Ford development program and announces plans for rest of the year.

A total of 908 oil and gas rigs were running across the United States this week, an increase of seven over last week. 185 rigs targeted natural gas (five more than the previous week) and 722 were targeting oil in the U.S. (two more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 458 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 $3.24/mmbtu.

90 Eagle Ford rigs were targeting oil with WTI oil prices at $49.82

A total of 96 rigs are drilling horizontal wells, zero are drilling directional wells and three are vertical.

Karnes County leads this week with 22 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 Rig Count by County-May 26, 2017 — Eagle Ford Rig Count by County-May 26, 2017

Eagle Ford Shale News

Earthstone Resumes Eagle Ford Development

Lonestar Resources Q1: Strong Production Growth

Eagle Ford Shale Gaining Strength through 2017

Carrizo Invests Heavily in the Eagle Ford Shale Play

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.

The Eagle Ford Shale drilling rig count has had its ups and downs, marking the rise of the region's shale development and the decline brought on by low crude prices. The following infographic shows the rig count trends since 2011.Eagle Ford Rig Count

Earthstone Resumes Eagle Ford Development

May 24, 2017 Elizabeth Alford

Earthstone Energy, Inc. has resumed its Eagle Ford development program and announces plans for rest of the year.

Earthstone Energy recently announced its first quarter results, including an average daily production of approximately approximately 9,515 Boepd (66% oil, 81% liquids). Capital expenditures for the quarter totaled approximately $4.2 million.

The Woodlands-based company also reported it resumed its Eagle Ford development program in March. Plans for the rest of 2017 include drilling and completing 11 gross / 4.8 net wells in Gonzales County in 2017 at an estimated total net cost of $23.0 million.

In a quarterly earnings call, Earthstone executives spoke primarily about their newly acquired assets in the Midland Basin, where the company has 27,000 net acres and is running one rig.

“Going forward, we continue to focus on our cost structure as we execute our development program and will actively evaluate acquisition opportunities to further expand our operated acreage and production. As many of you know we tend to operate the vast majority of our assets and that is our clear focus while generating attractive economics.”

— Frank Lodzinski, President and CEO

Lonestar Resources Q1: Strong Production Growth

May 22, 2017 Elizabeth Alford

Lonestar Resources credit its Eagle Ford well completions for a strong production growth for the first quarter.

During a quarterly earnings call last week, Lonestar executives reported a 15% production growth during the three months ending March 31, 2017. The company also reduced Lease Operating and Gas Gathering Costs ("LOE") by 15% during the quarter, compared to $3.5 million over Q4 2016. Executives expect production to grow at an accelerated rate through the rest of 2017.

“2017 is off to a strong start, as Lonestar has resumed production growth in the Eagle Ford Shale play with a 15% increase in production over 4Q16 results. Our well results are validation of our highly technical approach to the Eagle Ford. I believe that we are on-track to accelerate production growth in the second half of the year, which should achieve improved liquidity and an expanded borrowing base heading into 2018.”

— Lonestar's Chief Executive Officer, Frank D. Bracken, III,

Q1 Highlights

Net oil and gas production averaged 5,266 Boe/d
Production volumes consisted of 3,250 barrels of oil per day (62%), 927 barrels of NGLs per day (17%), and 6,528 Mcf of natural gas per day
Lonestar plans to drill 12 net wells during 2017
Lease Operating Expense was reduced from $3.5 million in 4Q16 to $3.0 million in 1Q17
General & Administrative Expense was reduced from $2.8 million in 4Q16 to $2.5 million in 1Q17

Eagle Ford Rig Count Pushes to 101

May 19, 2017 Elizabeth Alford

The Eagle Ford Shale rig count continues its climb, with 101 rigs running across our coverage area by midday Friday.

In recent Eagle Ford News: after two years of struggle and industry contraction, the outlook in Texas' Eagle Ford Shale is looking more positive.

A total of 901 oil and gas rigs were running across the United States this week, an increase of 16 over last week. 180 rigs targeted natural gas (eight more than the previous week) and 720 were targeting oil in the U.S. (eight more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 459 of the rigs active in the U.S. were running in Texas.

Eagle Ford Oil & Gas Rigs

Eight rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.26/mmbtu.

95 Eagle Ford rigs were targeting oil with WTI oil prices at $50.32

A total of 95 rigs are drilling horizontal wells, two are drilling directional wells and four are vertical.

Karnes County leads this week with 24 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 Rig Count by County-May 19, 2017 — Eagle Ford Rig Count by County-May 19, 2017

Eagle Ford Shale News

WildHorse Gains Eagle Ford Acreage

Eagle Ford Shale Gaining Strength through 2017

Carrizo Invests Heavily in the Eagle Ford Shale Play

Baytex Breaks-Even at $30 a Barrel in the Eagle Ford

Cabot Getting Good Returns in the Eagle Ford

What is the Rig Count?

The Eagle Ford Shale drilling rig count has had its ups and downs, marking the rise of the region's shale development and the decline brought on by low crude prices.