EOG Boasts 2,000 Eagle Ford Locations

August 10, 2016 Elizabeth Alford

EOG resources announce they have increased their Eagle Ford investments to almost 2,000 locations.

For the second quarter of 2016, EOG Resources reported a net loss of $292.6 million while increasing their premium drilling locations from 3,200 to 4,300. They were also able to decrease cash operating costs per unit by 15% compared to full-year 2015.

Eagle Ford Operations

During a conference call last week, EOG executives highlighted their Eagle Ford assets, saying these continue to lead the company in activity and production.

“Year after year, we improve our well productivity in the Eagle Ford. Much of this year’s increase can be attributed to our shift to premium drilling. However, just 60% of our 2016 drilling program is premium, so we expect to see improvement for many years to come.”

— Lloyd W. Helms, Jr. – Executive Vice President, Exploration & Production

Eagle Ford Highlights for 2016 Second Quarter

Increased premium inventory by 390 net drilling locations to almost 2,000 total
Completed 60 wells with an average treated lateral length of 4,800 feet per well
Averaged 30-day initial production rate per well of 1,705 barrels of oil equivalent per day (Boed)
Droped total well cost another 11% year to date to $5.1 million

Nordheim Citizens Sue Texas Railroad Commission

August 9, 2016 Elizabeth Alford

A group of citizens from one Eagle Ford town is suing the Texas Railroad Commission over plans for a waste site in their community.

Folks in Nordheim, TX, population 316, have been waging war for several years against Pyote Reclamation Systems over a proposed waste site that borders their small Dewitt County town.

Residents have sent over 200 protest letters, showed up at RRC meetings and started a non-profit form Concerned About Pollution.

When the Texas Railroad Commission permitted the waste project in May, the group filed a lawsuit against the state’s regulatory agency.

The 143-acre waste pit would store drill cuttings, oil-based muds, fracking sand and other toxic oilfield leftovers. Citizens are concerned over potential safety issues such as increased truck traffic, the proximity to schools and the inability of the fire department to respond to a fire.

Even RRC Commissioner Ryan Sitton wasn’t keen on the waste site but said he had no other choice but to approve it.

“Does your client understand the social license to operate they have asked for here? I’ll be candid. I don’t like the site.””

— Commissioner Ryan Sitton to Pyote’s attorney

Chesapeake to Run 3 Rigs in the Eagle Ford

August 8, 2016 Elizabeth Alford

Chesapeake plans to keep three rigs running in the Eagle Ford through the rest of the year.

During a second quarter earnings call, Chesapeake executives said that their focus on cost and technology improvements on their high quality assets have allowed them to remain competitive.

Eagle Ford Operations

Chesapeake announced they have slashed the cost to drill Eagle Ford wells that are 9,000 feet long by 50%, down to $4 million. This savings will allow them to increase their drilling program for the rest of the year in the Eagle Ford. During the quarter, they also reduced the time to drill down to 9.7 days.

“For the last six months of the year, (…) we plan to drill 100 more wells, which is roughly twice the number of wells originally planned in 2016. Primarily this will occur as we keep three rigs running in the Eagle Ford when we had previously expected to release those rigs earlier this summer. Second, we’re projecting to place on production approximately 75 more wells than we originally planned.”

— Robert Douglas Lawler – President, Chief Executive Officer & Director

For the rest of the year the company plans to drill 100 more wells, roughly twice the number of wells originally planned for 2016. Primarily this will occur as we keep three rigs running in the Eagle Ford when we had previously expected to release those rigs earlier this summer.

Second quarter highlights include:

Total debt reduction of more than $1.0 billion year to date
Revenues declined by 54% year over year
Production averaged approximately 657,100 boe per day
Cost structure improvements lead to lower full-year 2016 production expense guidance

Newfield to Sell Eagle Ford Assets

August 4, 2016 Elizabeth Alford

Newfield Energy announced yesterday that they are leaving the Lone Star State with the sale of a substantial portion of their Texas assets, including those in the Eagle Ford Shale.

Newfield is hoping to replenish their cash flow with the $390 million deal, which is set to close in the third quarter of 2016. The sale includes Newfield’s unconventional assets in the Eagle Ford plus conventional natural gas assets in south and west Texas. The company estimates that the current net daily production from both assets is approximately 12,700 barrels of oil equivalent per day, of which about 35% is oil.

“We continue to refine our portfolio and focus our people and capital resources on assets with high returns and a deep inventory of future drilling opportunities,” said Newfield Chairman & CEO Lee K. Boothby. “Proceeds from the sale of our Texas assets will replenish our cash balance and position us for the timely acceleration of our STACK development in the future.”

For the second quarter, Newfield recorded a net loss of $667 million. Other quarterly highlights include:

Net domestic production was 13.7 MMBOE
Anadarko Basin average net production reached record 83,700 BOEPD
Domestic lease operating expense per BOE was down approximately 25% year-over-year
Increases its 2016 production outlook and planned capital investments
Continued strong results in STACK lead to 15% increase in type curve to 1.1 MMBOE gross

Sundance Gains McMullen County Property

August 2, 2016 Elizabeth Alford

**Sundance Energy Acquires Eagle Ford Assets**

Sundance Energy announced yesterday that they have closed on the purchase of Eagle Ford Shale assets in McMullen County, Texas.

Australia’s Sundance Energy closed on the deal July 29th as part of a major growth strategy focusing on the Eagle Ford. The $15.5 million transaction included 27 gross (9.6 net) wells. Other details include:

5050 Acres in McMullen County Texas
Total proved reserves of 3 MMboe, 1.4 MMboe of which are attributed to producing wells
Expected production of 600 barrels of oil equivalent per day (boe/d) to 700 boe/d for the remainder of 2016

The is the third venture for Sundance in the Eagle Ford. The company also operates Choke Canyon Reservoir located in McMullen, Live Oak and Atascosa Counties and the Redemption Project located in Dimmit County. Before the announcement of this purchase, Sundance reported on their website that they held ~40,000 net acres in the Eagle Ford.

Sundance has other projects in South Texas including Choke Canyon Reservoir located in McMullen, Live Oak and Atascosa Counties and the Redemption Project located in Dimmit County.