EOG Announces Eagle Ford Shale Discovery and Acreage

EOG becomes one of the largest acreage holders in the Eagle Ford Shale with the announcement of its acreage position.

HOUSTON - EOG Resources, Inc. (EOG) today announced crude oil discoveries in South Texas, North Dakota and Colorado. Potential reserves were increased on its Bakken/Three Forks and Fort Worth Barnett Shale Combo crude oil and liquids-rich acreage. In addition, natural gas reserve estimates were also raised for its Haynesville/Bossier and British Columbia Horn River Basin acreage.

"These results reflect EOG's concerted effort over the last four years to capture early mover positions in new crude oil and liquids-rich plays amenable to horizontal drilling," said Mark G. Papa, Chairman and Chief Executive Officer.

Crude Oil Discoveries

In South Texas, EOG has accumulated acreage across six counties in the Eagle Ford Play where it has drilled 16 delineation wells over a 120 mile trend. Based on initial drilling and production results, as well as technical and core analysis, the estimated reserve potential on EOG's 505,000 net acre position in the oil window is approximately 900 million barrels of crude oil equivalent (MMboe), net after royalty (NAR). Development of this high rate-of-return crude oil play is underway with the first significant production impact projected for 2011.

BP - Lewis Joint Venture in Eagle Ford Dry Gas

BP and Lewis Energy reach JV deal across 80,000 acres in Webb County, TX.  Industry representatives report that BP paid Lewis Energy (Lewis Petroleum Properties) $160 million ($4,000 per acre) for a 50% interest in 80,000 acres in the dry gas window of the Eagle Ford Shale.

"BP has made a joint- venture deal with privately held Lewis Energy Group that will expand the British oil giant's position in the U.S. natural gas business and find it entering a fast-emerging field in South Texas, according to a person familiar with the situation." "The deal would be the latest in a string of similar moves by major oil companies to enter or expand in unconventional rock formations in the U.S., where huge amounts of natural gas have been discovered in recent years."

"In December, Exxon Mobil Corp. said it would acquire Fort Worth's XTO Energy in a deal valued at $41 billion. A month later, France's Total agreed to pay $2.3 billion for 25 percent of Chesapeake Energy Corp.'s acreage in the Barnett Shale play in North Texas, and the companies said they may jointly develop acreage in the Eagle Ford Shale and in several Canadian natural gas plays."

Read the full article at Chron.com

Newfield - Anadarko Acquire TXCO Resources Eagle Ford Assets

Newfield Exploration and Anadarko Petroleum have emerged as the buyers now bankrupt TXCO Resources' acreage in the Maverick Basin of South Texas. Anadarko will absorb approximately 80,000 net acres in the southern portion of the basin for approximately $93 million. Newfield gets the lion's share of assets by acquiring over 350,000 gross acres (300,000 acres net) for $217 million. The Eagle Ford is really beginning to heat up. South Texas will now become a core area for Newfield and major asset for Anadarko Petroleum.

"Newfield Exploration Company (NYSE: NFX) and Anadarko Petroleum Corporation (NYSE: APC) announced today a joint transaction to acquire TXCO Resources Inc.'s (TXCO) assets in the Maverick Basin of Southwest Texas for up to $310 million. The final amount will be determined at closing, which is expected in mid-February 2010."

"According to the terms of the transaction, a wholly owned subsidiary of Anadarko will acquire more than 80,000 net acres in this basin from TXCO for approximately $93 million and increase its operated working interest in these properties to 75 percent."

"Newfield will acquire substantially all of TXCO's remaining assets in the Maverick Basin, which include more than 350,000 gross acres (300,000 net acres), for approximately $217 million. Current net production of the assets to be acquired by Newfield is 1,500 BOEPD, of which two-thirds is oil. The acreage has multiple geologic targets, primarily in the Eagleford and Pearsall formations."

Read the full press release at Newfield.com

Murphy Oil Announces Results From First Eagle Ford Shale Well And Update Of Drilling Activities

Murphy Oil announces impressive Eagle Ford Shale discovery well results and plans to test additional acreage through a second well:

"A discovery was made at the George Miles #1H well in the Eagle Ford Shale in South Texas. The well was drilled vertically to a depth of 13,320 feet then completed in a 3,190 ft. horizontal section with a 13 stage fracture stimulation. The well flowed at an initial rate of approximately 7.5 million cubic feet of natural gas per day. President and Chief Executive Officer, David M. Wood, commented 'We are very pleased by the results of our first well in this promising Eagle Ford Shale play and by the quality of the acreage we have accumulated. We are currently drilling our second well in Karnes County to evaluate another tranche of our leasehold, and expect to stay very active in this play throughout the year.' "

Read the full press release at murphyoilcorp.com

Swift Energy Company and Petrohawk Energy Corporation Announce Joint Venture to Develop Eagle Ford Shale

Petrohawk and Swift enter Eagle Ford Shale joint venture to develop the Eagle Ford in McMullen County, Texas.  Petrohawk paid $26 million upfront and will carry costs of $13 million to fund development of the 26,000 acres. Petrohawk earns a 50% interest for $39 million ($3,000 per acre).

"Swift Energy Company (NYSE: SFY) (“Swift Energy”) and Petrohawk Energy Corporation (NYSE: HK) (“Petrohawk”) have executed a definitive agreement to jointly develop and operate an approximate 26,000 acre portion of Swift Energy’s Eagle Ford Shale acreage in McMullen County, Texas.

"Terry Swift, CEO of Swift Energy, remarked, 'We have found an excellent partner to jointly develop with us a portion of our highly prospective Eagle Ford shale acreage. Petrohawk is one of the leaders in developing natural gas from shale formations responsibly, efficiently and cost effectively. Their technical and commercial expertise has already produced strong operational results in the Eagle Ford Shale, making Petrohawk an excellent choice as a partner for this project.' "