Eagle Ford Shale Regional Rig Count at 270 - Nov. 16, 2012

November 16, 2012 R.T. Dukes

Eagle Ford Shale drilling increased 11 rigs to jump back to 270 units drilling in the region. Growth was largely attributable to La Salle (35 rigs) and Karnes (36 rigs) counties. 270 rigs puts the region back at the average rig count for 2012. Earlier in the year, I noted the Eagle Ford rig count would likely decline (Here) throughout the remainder of the year if oil prices didn't go above $100. I was wrong. Many of the major operators have dropped rigs as they have reached certain milestones in drilling time, but others have stepped in. As the most efficient operators dropped rigs, they were almost simultaneously being picked up by other companies in the play.

In the second half of the year, we've seen Chesapeake and EOG drop 10 rigs or more each, but Marathon and BHP (Petrohawk) have added almost enough rigs to offset those declines. Then there are the small and mid-size operators who are adding a rig at a time in support of regional development. What I thought would be an overall decline in active rigs has turned out to be a non-event.

Eagle Ford Oil & Gas Rigs

The natural gas rig count grew to 57 on the week. Natural gas prices reached a 2012 high on Friday when the commodity was traded $3.80 per mmbtu. The worries of natural gas storage being pushed to a maximum have been relieved and the price will be very much dependent on weather in the coming months.

The oil rig count gained back its losses from last week to settle at 213 running. WTI crude futures were almost unchanged for the third week in a row. Oil was trading at ~ $87 per barrel on Friday. Eagle Ford crude priced at $97/bbl on the 15th of November. Light crude and condensate in the area traded at $82 and $81, respectively.

There are 256 horizontal rigs running in the region. Karnes County leads development with 36 rigs running. La Salle with 35 rigs, McMullen (29), Webb (26), Dimmit (21), Gonzales (22), DeWitt (19), Live Oak (13), Atascosa (9), Fayette (8) and Lavaca (8) round out the top Eagle Ford counties.

Oil & gas news items this week included:

Devorah Fox of Mike Byrnes & Associates contributed great article discussing the Steps in Planning a Safe Heavy Load Haul.

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts.

Eagle Ford 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.

Eagle Ford Shale Drilling by County

Eagle Ford Shale Regional Rig Count at 259 - Nov 9, 2012

November 9, 2012 R.T. Dukes

EOG Resources South Texas Eagle Ford Map 2012

Eagle Ford Shale drilling declined ten rigs over the past week to 259 rigs active. The bulk of the decline was attributable to La Salle (30 rigs) and Karnes (32 rigs) counties. Interestingly enough, November of 2011 was the last time the rig count in Karnes County was as low as 32. No one operator accounted for the change. A few rigs simply shifted out of the county into other areas.

We were in the heat of earnings season this week. The highlight was hearing more "Monster Well" results from EOG Resources and Marathon Oil. Marathon's Burrow 2-H well in Gonzales County produced at a peak 24-hour rate of 6,275 boe/d. Almost 75% (4,646 boe) was attributable to oil and condensate. EOG's Baker-DeForest Unit #4H well tested at 4,598 b/d of oil and 4 mmcfd of rich natural gas at normal choke rates. Truly amazing production rates.

Eagle Ford Oil & Gas Rigs

The natural gas rig count fell one rig to 54 running in the region. The stock market didn't have the best week after the election, but gas prices held relatively flat at $3.50 per mmbtu.

The oil rig count fell eight rigs to 205 running. That's the lowest level since the first week of September when we had 207 oil rigs running in the region. None of the bits drilling holes this week are drilling service wells.

Just like natural gas, WTI was relatively flat on the week as well. WTI crude futures were trading at approximately $86 per barrel on Friday. Eagle Ford crude priced at $97.50/bbl on the 9th of November. Light crude and condensate in the area traded at $82.50 and $81.50, respectively. Eagle Ford prices were up on the week. A first in over a month's time.

There are 247 horizontal rigs running in the region. Karnes County leads development with 32 rigs running. La Salle with 30 rigs, McMullen (30), Webb (26), Dimmit (22), Gonzales (22), DeWitt (18), Live Oak (12), Atascosa (10), and Fayette (8) round out the top Eagle Ford counties.

News items this week included:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts.

Eagle Ford Rig Count by Operator

What is the Rig Count?

Eagle Ford Shale Drilling by County

Eagle Ford Regional Rig Count at 269 - Nov 2, 2012

November 2, 2012 R.T. Dukes

Cabot Oil and Gas Pearsall Shale Target Area Map

Eagle Ford Shale drilling four rigs to settle at 269 working over the past week. Through the first ten months of the year, more than 270 rigs have worked the 30 county area we track where there is Eagle Ford development potential. That's roughly 25% higher than the rig count average in 2011 a.nd right in line with current activity levels

This past week was highlighted by earnings reports. Cabot announced results from its first Pearsall Shale well in Frio County. The well produced 1,400 boe/d at its peak, with 50% of production attributable to oil. That's a decent oil well for what most have targeted as a gas play historically. Cabot's Pearsall acreage and the area where operators are testing the play is highlighted in the exhibit above.

Eagle Ford Oil & Gas Rigs

The natural gas rig count has grown to 55 rigs since hitting a low of 38 at the beginning of October. Natural gas prices broke through the $3 barrier last month, so it's no surprise operators are taking this opportunity to develop gas prone areas. Henry Hub futures were up to $3.55 to end the week.

The oil rig count fell six rigs to 213 running during the week. Just one service well is currently being drilled and it is a water well in Bastrop County. This well has been drilling for several weeks. If anyone has checked on the permit, please share the details in the comment section below.

WTI was down to just under $85 per barrel on Friday. The price fluctuated quite a bit during the week as a larger than expected storage draw supported prices, but a weaker than expected jobs number hit prices on Friday. Eagle Ford crude priced at $96.2/bbl on the 2nd of November. Light crude and condensate in the area traded at $81.25 and $80.25, respectively.

There are 256 horizontal rigs running in the region. La Salle County leads development with 37 rigs running. Karnes with 35 rigs, McMullen (28), Webb (26), Dimmit (22), Gonzales (22), DeWitt (17), Live Oak (13), Atascosa (11), and Fayette (8) round out the top Eagle Ford counties.

News items this week included:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts.

Eagle Ford Rig Count by Operator

What is the Rig Count?

Eagle Ford Shale Drilling by County

Eagle Ford Shale Regional Rig Count - October 26, 2012

October 26, 2012 R.T. Dukes

Eagle Ford Shale drilling fell one rig to 273 over the past week. This is roughly the third week in a row the rig count has gone almost unchanged. That likely means operators are settled in and don't plan to make major changes before the end of the year. Third quarter earnings announcements are starting to roll in and results have been positive to date. I've heard a couple of operators who have 1-2 rigs active say they are planning for three or more in 2013. Capital budgets are being set as we speak, so we'll have a really good idea of what to expect come January.

Newfield is one operator who plans to pick up its pace of development in 2013. The company has drilled four extended lateral wells (7,500 ft) in Dimmit County and expects ultimate recoveries from each of the wells will surpass 500,000 barrels. The company also has plans to test a 10,000 ft lateral in the area. With additional efficiency gains through pad drilling, internal rates of returns on the company's wells will easily surpass 50%.

Eagle Ford Oil & Gas Rigs

The natural gas rig count held flat at 53 rigs running this past week. With gas holding relatively strong in the mid-$3 range, it's no surprise to see operators honing in on gassy areas.

The oil rig count was essentially flat, dropping one rig to settle at 219 running. Just one service well is currently being drilled and it is a water well in Bastrop County.

Henry Hub futures were down two dimes to end the week at ~$3.40 on Friday. Spot prices were trading in the same range.

WTI was down 7% to ~$86 this week. Generally, weak corporate earnings reports are taking a toll on commodities. Eagle Ford crude priced at $95.18/bbl on the 26th of October. Light crude and condensate in the area traded at $86.75 and $81.75, respectively.

There are 259 horizontal rigs running in the region. La Salle County still leads development with 39 rigs running. Karnes with 36 rigs, McMullen (30), Webb (25), Dimmit (23), Gonzales (20), DeWitt (17), Atascosa (11), Live Oak (11), and Frio (8) round out the top Eagle Ford counties.

News items this week included:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts.

Eagle Ford Rig Count by Operator

What is the Rig Count?

Eagle Ford Shale Drilling by County

Eagle Ford Rig Count Remains at 274 | October 19, 2012

October 19, 2012 R.T. Dukes

Eagle Ford Shale drilling held flat at 274 rigs running over the past week. The week was highlighted by DUG Eagle Ford in San Antonio on Monday and Tuesday. Several thousand people were on hand to hear the latest presentations on activity and issues in the play. We shared our notes earlier in the week in the article Heard at DUG Eagle Ford 2012. While the conference has Eagle Ford in the name, many of the presentations focused on potential in other formations.

The resource potential in the Austin Chalk, Buda, Chalkleford, Eaglebine, Escondido, Olmos, and Woodbine formations could make this an oil & gas boom that extends much longer than the life of the Eagle Ford. South Texas will likely be known for oil & gas the rest of our lifetime.

Eagle Ford Oil & Gas Rigs

The natural gas rig count bounced off a low of 38 to add 15 rigs this past week. There are 53 natural gas rigs working in the region, but the shift is attributable to counties where oil and wet gas targets are present (DeWitt, La Salle, and Webb counties)

The oil rig count fell off its record of 235 rigs last week to settle at 220 this week. While 15 rigs is significant, remember most were simply reclassified in liquids-rich Eagle Ford counties.

Just one service well is currently being drilled and it is a water well in Bastrop County.

Henry Hub futures were slightly week over week to $3.62 on Friday. Spot prices were up by more than ten cents to $3.43/mmbtu.

WTI was down on the day to end the week trading at ~$92 per barrel. Eagle Ford crude priced at $98.93/bbl on the 19th of October. Light crude and condensate in the area traded at $86.50 and $85.50, respectively.

There are 262 horizontal rigs running in the region. La Salle County still leads development with 39 rigs running. Karnes with 36 rigs, McMullen (25), Webb (25), Dimmit (24), Gonzales (22), DeWitt (19), Atascosa (14), Live Oak (12), and Frio (10) round out the top Eagle Ford counties.

News items this week included:

If you didn't catch it last week, be sure to read Devorah Fox's article titled Tied Down Cargo and Load Securement.

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts.