267 Rig Record During Christmas Week - December 23, 2011

December 26, 2011 R.T. Dukes

A small Christmas gift from the Eagle Ford Shale drilling rig count that jumped to 267 active rigs last week. Thats a new record for drilling in the area (again). The previous high was 264 set during the week of November 18, 2011. With most companies adding rigs in the new year, don't expect this record to last long. 245 of the 267 rigs are drilling horizontal wells. Vertical drilling now accounts for less than 10% of all drilling in the area (mostly non-Eagle Ford). Oil prices recovered a bit over the past week (close to $100/bbl) and gas prices remained weak. The January natural gas contract is bouncing around $3/mmbtu (Henry Hub), but the natural gas rig count grew two rigs to a total of 95 rigs working the play. While $3 gas isn't adding incremental development, the Eagle Ford rig count will remain dependent on liquids prices.

The number of oil rigs working increased by 10 to reach a total of 172.

Webb (37) still leads the region, while Karnes (35), La Salle (34), McMullen (26), DeWitt (25), Dimmit (24), and Gonzales (19) round out the top counties in the area. All but McMullen added rigs during the week.

Hess Corporation added its first Eagle Ford operated rig. The unit is running in La Salle County, TX. Hess is one of the largest operators in the Bakken Shale in North Dakota.

Stay tuned for updates on the South Texas drilling rig count.

Drilling Rig Count by Operator

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 SmithBits 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 and/or Smith Service Co's (Schlumberger) Smith Rig Count.

Drilling Rigs by County

Three Rigs Dropped Last Week - December 16, 2011

December 16, 2011 R.T. Dukes

The Eagle Ford Shale drilling rig count fell 3 rigs last week to 256. It was a rough week in the commodities markets. Oil futures prices fell more than $5 (WTI <$94/bbl) and natural gas futures prices (HH<$3.15/mmbtu) continue to fall. The January contract has fallen more than $0.50 over the past two weeks. Spring weather in Texas this past week isn't helping the cause. The natural gas rig count fell 3 to a total of 93 rigs. While $3 gas isn't going to help, the Eagle Ford rig count is more dependent on liquids prices than natural gas.

The number of oil rigs working didn't change 162. Also, one service well is being drilled in Duval County. 233 of the 256 running (>90%) are drilling horizontal wells.

Webb (35) still leads the region, while Karnes (33), La Salle (31), McMullen (26), Dimmit (22), DeWitt (22), and Gonzales (18) round out the top counties in the area. The only significant change by an operator during the week was EOG who dropped 3 rigs.

News highlighted throughout the play included:

Stay tuned for updates on the South Texas drilling rig count.

Drilling Rig Count by Operator

What is the Rig Count?

Drilling Rigs by County

Eagle Ford Drilling Up 2 Rigs - December 9, 2011

December 9, 2011 R.T. Dukes

The Eagle Ford Shale drilling rig count increased by 2 rigs over the past week. While November was a record month, we expect to continue seeing records fall in 2012. Marathon Oil's Eagle Ford budget provides capital to increase to 17 rigs in 2012 from the 9 the company is running currently. That's just one company. There will be others adding rigs as well. Oil and gas operators are on track to drill more than 2,500 wells next year. Oil futures prices continue to show strength (WTI <$100/bbl) and natural gas futures prices (HH<$3.30/mmbtu) seem to be on a never ending path to $3...... The January contract has fallen more than $0.30 over the past week and the recent cold snap in the South hasn't put a dent in storage levels. The natural gas rig count fell 1 to a total of 96 rigs. Don't expect it to fall dramatically any time soon. Many of the gas weighted areas in the Eagle Ford also produce higher value condensate and NGLs.

A total of 2 oil rigs were added to reach a total of 162. Also, one service well is being drilled in Duval County.

Webb (37) still leads the region, while Karnes (36), La Salle (30), Dimmit (24), DeWitt (23), McMullen (22), and Gonzales (19) round out the top seven counties in the area. The most significant change was Petrohawk (BHP) who added back the 3 rigs it dropped the week before.

News highlighted throughout the play included:

Other news:

Stay tuned for updates on the South Texas drilling rig count.

Drilling Rig Count by Operator

What is the Rig Count?

Drilling Rigs by County

Eagle Ford Drilling is Flat - December 2, 2011

December 2, 2011 Kenny DuBose

The Eagle Ford Shale drilling rig count remained flat at 257 rigs running over the past week. An average of 253 drilling rigs worked throughout November and we're starting even higher the first week of December. The last month of the year is setting up to be the most active drilling month in the Eagle Ford's history. The approximate 210-215 rigs targeting the Eagle Ford formation will easily drill more than 220 wells in December. Oil futures prices continue to show strength (WTI <$100/bbl) and natural gas futures prices (HH<$3.60/mmbtu) are leaving a lot to be desired for companies and mineral owners alike. The January contract for natural gas is better than December, but it is going to take a lot of cold weather to get prices to move in a positive direction. The natural gas rig count fell 4 to a total of 97 rigs. That's the first time natural gas drilling has dropped below 100 rigs in almost a year. A total of 5 oil rigs were added to bring us back up to 160 running.

Webb County did drop below 40 rigs during the week. Webb (38) still leads the region, while Karnes (34), La Salle (32), Dimmit (26), DeWitt (21), Gonzales (19), and McMullen (19) counties together account for 85% of Eagle Ford drilling. The companies with the most significant changes were Petrohawk (BHP) who dropped 3 rigs and Chesapeake who added 2 .

News highlighted throughout the play included:

Stay tuned for updates on the South Texas drilling rig count.

Drilling Rig Count by Operator

What is the Rig Count?

Drilling Rigs by County

Slow Permitting During Thanksgiving Week

November 29, 2011 Kenny DuBose

Only one Eagle Ford well was permitted last week in the area surrounding Corpus Christi. Pioneer Natural Resources permitted the 21,000 ft horizontal well in Live Oak County. 20,000 ft wells are becoming more common. If economics are challenged by lower commodity prices, you can bet extending laterals on larger units will be a way operators increase reservoir drainage to improve economics. Read the full news release at caller.com