Eagle Ford Shale Rig Count - June 3, 2011

Drilling Rig
Drilling Rig

This week's Eagle Ford Shale rig count rose from 198 active drilling rigs last week to 202 this week. The gas rig count increased from 101 rigs drilling to 103, while the oil rig count climbed from 95 rigs to 97. One rig is drilling an injection well.  Horizontal rigs account for 182 of the 202 rigs drilling in the South Texas region. Drilling activity should continue to climb over the coming months as operators commit more rigs to the play. Stay tuned each week for an update on the South Texas rig count.  Better yet, Subscribe by RSS.

Drilling Rig Count by County

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 rig count referred to in this article is for ALL drilling reported by SmithBits and not solely wells targeting the Eagle Ford Shale.

All land rig count 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.

Marathon, Hilcorp, and KKR Reach $3.5 Billion Eagle Ford Shale Acreage Deal

Marathon Oil reaches an agreement to buy Eagle Ford Shale Acreage for $3.5 billion ($24,822 per acre without consideration for production) from Hilcorp Resources.  Industry experts peg acreage value at approximately $21,000 per acre when considering production. [quote]Marathon Oil Corporation (NYSE: MRO) announced today it has reached a definitive agreement with Hilcorp Resources Holdings, LP to purchase its assets in the core of the Eagle Ford shale formation in Texas in a transaction valued at $3.5 billion subject to closing adjustments, customary terms and conditions, and Hart-Scott-Rodino approval. Hilcorp Resources Holdings is a partnership between affiliates of Hilcorp Energy Company and Kohlberg Kravis Roberts & Co. LP. Along with other transactions expected to close by the end of 2011, Marathon's Eagle Ford acreage position is expected to more than double to 285,000 net acres. The Hilcorp transaction is expected to close Nov. 1, 2011 with an effective date of May 1, 2011. Hilcorp acreage acquisition highlights:

Approximately 141,000 net acres (217,000 gross) primarily in Atascosa, Karnes, Gonzales and DeWitt counties in Texas (see attached map). Potential opportunity to acquire approximately 14,000 additional net acres through tag-along rights and other leasing.

•Approximately 90 percent operated with 65 percent average working interest. As of May 1, there were 36 wells producing approximately 7,000 net (17,000 gross) barrels of oil equivalent (boe) per day, of which 80 percent is liquids (three-fourths of which is crude oil and condensate)

10 additional wells drilled and awaiting completion. Six rigs currently operating and two dedicated hydraulic fracturing crews

Total net risked resource potential of 400 - 500 million boe with upside potential from additional downspacing and other stacked pay potential. Potential to book up to 100 million boe of proved reserves by the end of 2011.

Year-end production expected to be approximately 12,000 net boe per day. Production expected to increase to approximately 80,000 net boe per day by 2016

Read the full press release at Marathon.com

Eagle Ford Shale Rig Count - May 27, 2011

drilling rig
drilling rig

The Eagle Ford Shale rig count fell from 202 active drilling rigs last week to 198 this week. The gas rig count dropped down from 109 rigs drilling to 101, while the oil rig count jumped from 92 active rigs from the previous week's count to 95. One rig is drilling an injection well.  Horizontal rigs account for 177 of the 198 rigs drilling in the South Texas region. Drilling activity should continue to climb over the coming months as operators commit more rigs to the play. Stay tuned each week for an update on the South Texas rig count.  Better yet, Subscribe by RSS.

Drilling Rig Count by County

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 rig count referred to in this article is for ALL drilling reported by SmithBits and not solely wells targeting the Eagle Ford Shale.

All land rig count 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 Job Boom a Boon for Texas

What a boom the Eagle Ford has stirred.

Last year, the Eagle Ford shale generated 6,800 full-time jobs and paid $311 million in salaries and benefits, according to a study completed in February by the University of Texas at San Antonio's Center for Community and Business Research.

When spinoff jobs are included — from wholesalers to waiters - the study found the development in the shale play supported 12,600 jobs and paid $512 million in salaries.

Because development is just beginning, the UTSA study estimates that by 2020, 5,000 new wells will be drilled, and the Eagle Ford will support almost 68,000 full-time jobs, account for almost $21.5 billion in total annual economic output, and add almost $1.2 billion to Texas' revenues.

Entry-level floor hands on a Chesapeake Energy rig can make $22 to $25 an hour,

A motorman, who's one step up from a floor hand, can make $24 to $26 an hour, while a derrick man makes about $28 an hour. Pay for the driller, who answers to the tool pusher, is almost $30 an hour.

Read the full article at chron.com