Eagle Ford Rig Count Stays Flat – LaSalle County Leads – Feb 3, 2012

Posted on February 3, 2012 by RT Dukes

The Eagle Ford Shale drilling rig count remained flat this week, but we experienced a lot of movement between counties. La Salle County jumped 5 rigs to surpass Karnes and Webb counties, who have combined to hold the lead in terms of rig activity for the past year. Webb County lost 3 rigs, but no other counties gained or lost more than 1 rig.

The natural gas rig count held flat (83) on the week, while we lost 1 oil rig (171). Natural gas prices fell back to ~$2.50/mmbtu and it looks like growing production across the U.S. is going to stand in the way of higher prices for the foreseeable future.  March WTI oil prices were down a little on the week at $97 per bbl. Horizontal wells account for activity from 238 rigs drilling and we have 1 disposal well being drilling in Leon County (not a core Eagle Ford area).

La Salle County took the lead in drilling with 39 rigs.  Karnes (38),Webb (33), DeWitt (28), McMullen (23), Gonzales (19), and Dimmit (19) lead the pack and are the only counties with more than 7 rigs active.

News in the Eagle Ford included:

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Pioneer Reports Year-End Eagle Ford Shale Reserves of 70 mmboe

Posted on February 3, 2012 by RT Dukes

Pioneer Natural Resource’s Eagle Ford Shale reserves grew to 70 million barrels at the end of 2011. Pioneer’s core assets cut through the condensate rich window of the Eagle Ford in DeWitt, Karnes, and Live Oak counties.

For the entire company, Pioneer added 149 mmboe of proved reserves, which replaced 313% of the company’s 49 mmboe of production in 2011. Management attributed the strong performance to the Sprayberry field (West Texas), the Barnett Combo (North of Fort Worth), and the South Texas Eagle Ford.  (more…)

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Marathon Oil to Double Eagle Ford Production in 2012

Posted on February 2, 2012 by RT Dukes

Marathon Oil further supplemented its acreage position in the fourth quarter of 2011 and reaffirmed its guidance of 30,000 boe/d for 2012. The company is currently producing just 15,000 boe/d, but infrastructure constraints are holding production back. Marathon should easily hit its target as additional Eagle Ford pipeline and midstream gathering is brought online in conjunction with more drilling rigs. The company plans to have 18 rigs working by the third quarter of the year.  (more…)

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U.S. Energy & PetroQuest Eagle Ford Ops Updates Jan 31

Posted on February 1, 2012 by RT Dukes

U.S. Energy‘s upstream properties are located in the Bakken, Eagle Ford, and onshore Gulf Coast. The company didn’t provide well results, but did give an update on the progress of two wells: (more…)

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Comstock Resources Plans $193 Million With Two Rigs Through 2012

Posted on January 31, 2012 by RT Dukes

Comstock Resources Eagle Ford assets will have $193 million directed their way in 2012. The company will spend over $165 million to drill and complete 24 gross (21.7 net) wells, while also spending $27.7 million to finish 4 gross (3.2 net) wells that were started in 2011. Comstock Resource’s Eagle Ford acreage is predominately located in McMullen and Atascosa counties.

The company announced an increase in reported reserves of 25%, along with a 16% cut in capex. 2012 spending was lowered from $545 million to $458 million. The change was a direct response to sub-$3 natural gas prices. (more…)

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Magnum Hunter Lavaca County Well Produces More than 2,000 boe/d

Posted on January 31, 2012 by RT Dukes

Magnum Hunter Resources Eagle Ford operational update from the fourth quarter included the company’s best well to date. The Snipe Hunter #1H, in Lavaca County, was drilled to a total measured depth (TMD) of more than 16,000 ft and produced over 2,000 boe/d in the first 24 hours. Magnum Hunter is having success testing longer laterals with additional frack stages. The Snipe well included a horizontal lateral that extended over 6,000 ft.  (more…)

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Murphy Oil’s Eagle Ford Capital Budget $1-1.2 Billion per Year

Posted on January 30, 2012 by RT Dukes

Murphy Oil has current plans to spend $1-1.2 billion per year to develop the company’s Eagle Ford Shale properties. You can read additional comments from the quarterly call at Murphy’s Eagle Ford Shale page.

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Eagle Ford Bank Deposits Setting the Pace in Texas

Posted on January 30, 2012 by eaglefordshale

Bank deposits in South Texas are benefitting from a growing population of skilled workers who have higher paid oil & gas jobs and mineral owners who are reaping the benefits of new found royalties. Bank deposits grew a little over 10% from 2008-2011 across Texas, but deposits in South Texas grew more than 15%.

While that’s impressive, I expect the gap will only widen in the next couple of years. Development activity just began hitting its stride in 2011. Royalties are trickling in, but there is much more to come. In many wells, there are dozens to hundreds of people cashing royalty checks once production starts. (more…)

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Eagle Ford Drilling – Regional Rig Count Falls 10 January 27, 2012

Posted on January 27, 2012 by RT Dukes

The Eagle Ford Shale drilling rig count fell 10 rigs over the past week to 255 active units. The biggest declines were Karnes County, dropping 6 rigs, and Webb County, dropping 4 rigs. The natural gas rig count held flat on the week, while we lost 10 oil rigs. While considered commonly considered oil rigs, both Karnes and Webb county are parts of the Eagle Ford where wells produce a considerable amount of gas.

Oil prices held around $100/bbl through most of the week.  Natural gas prices rebounded off ten-year lows to ~$2.77/mmbtu, with the market belief that other producers would follow Chesapeake’s lead in shutting in production and moving rigs out of gas plays. Horizontal wells account for activity from 238 rigs drilling and we have 0 injection or service wells being drilled.

Karnes County kept its lead in drilling with 37 rigs. Webb (36), La Salle (34), DeWitt (28), McMullen (22), Gonzales (20), and Dimmit (18) lead the pack and are the only counties with double digit rig counts.

News in the Eagle Ford included:

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Eagle Ford Oil Production to Eclipse 400,000 b/d by 2015

Posted on January 27, 2012 by RT Dukes

At the Argus Americas Crude Summit yesterday, Tradition Midstream CEO John O’Shea was quoted saying Eagle Ford crude production would eclipse 400,000 b/d by 2015.  (more…)

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