Texon Eagle Ford Well Results and Reserves Growth of 50%

Texon Petroleum is taking a mid-year hike of 50% in its Eagle Ford Shale reserves bookings. The increase is attributable to the company's two producing wells and two wells awaiting completion. The company stated that 88% of its Eagle Ford reserves are oil and gas liquids.  The company now has almost 900,000 barrels of proved reserves and estimates total proved, probable, and possible reserves total 8,423,000 barrels.

The two wells the company has producing came online at 785 barrels of oil equivalent per day and 600 barrels of oil equivalent per day over the first 15 days of production, respectively. That's above average for McMullen County wells close to Texon's property. The wells were completed with 15 frack stages, with the less of the two wells only have 12 effective fracks. 

Australia-listed Texon Petroleum has booked nearly a 50% increase in reserves following an independent review of its Eagle Ford properties in the US during the first half of the year.

The company’s overall proved, probable and possible reserves, attributable to its net revenue interest, climbed to about 10 million barrels of oil equivalent, up from 6.7 million boe at the end of last year.

The increase came following an independent review by Netherland, Sewell & Associates Incorporated (NASI) which increased the estimated proved, probable and possible reserves of Texon’s Eagle Ford assets from about 5 million boe to 8.4 million boe as of 30 June.

Eagle Ford Task Force Outlines Goals

The Eagle Ford Task Force (EFTF), appointed by Texas Railroad Commissioner David Porter, convened yesterday at Coastal Bend College in Beeville to outline its goals and engage in a productive discussion regarding work force issues related to the development of the Eagle Ford Shale. The 24-member task force established that its main purpose is to serve as a forum for dialogue, so that task force members can bring issues and concerns from their constituents to the table and work toward solutions. The group also agreed to meet monthly and to provide recommendations on the top issues facing the region.

The EFTF also approved an agenda for the rest of the calendar year, prioritizing the region’s most pressing issues. Over the next four months, the task force will discuss the following:

• Water usage as it relates to hydraulic fracturing
• The impact of oil and gas production on community infrastructure
• The need for public education regarding oil and gas production
• Promoting economic development stemming from oil and gas production

“I am pleased to see the task force selecting topics for discussion that are crucial to the success of the development of the Eagle Ford Shale,” said Commissioner Porter. “If we handle this opportunity responsibly, we could be looking at the largest oil field ever discovered in Texas. It is imperative that we get this right, and our task force is on a clear-cut path to do so.”

The EFTF also discussed work force issues currently plaguing the region. Several industry representatives spoke about the need to fill hundreds of jobs this year and the obstacles they are facing in finding qualified applicants. Industry representatives estimated there are approximately 120 jobs connected to each drilling rig. Currently, there are approximately 200 rigs operating in the region. However, employers are often battling failed drug tests and background tests or the lack of commercial drivers licenses (CDL) when trying to fill these jobs.

Representatives from Marathon Oil and Pioneer Resources spoke about successful recruiting tactics specific to the Eagle Ford region, such as recruiting from the military and hosting job fairs versus posting jobs online.

Manual Ugues, Business Services Director, Workforce Solutions of the Coastal Bend, discussed the many programs his organization is implementing to connect employers with skilled workers in the region. He urged employers to reach out to Workforce Solutions with their needs. To learn more about these programs, please visit: www.workintexas.com.

Glynis Straus, Dean of Institutional Advancement at Coastal Bend College spoke about the consortium of oil and gas classes the college is presently offering. Coastal Bend College has partnered with several organizations to provide world-class field training to students who can currently take courses such as: drilling industry introduction (elementary drilling), corrosion basics, petroleum safety and environmental hazards (H2S Training), technology/technician/management (supervisory skills), focused oil spill response training and CDL/driving safety courses.

“When unemployment in this country is over nine percent, it is great to see South Texas providing an abundance of good-paying, steady jobs. But we need to work to get those jobs filled, and that was the point of the task force discussion,” said Commissioner Porter. “I feel as though we provided some real solutions at the meeting, and I look forward to seeing those efforts implemented.”

David J. Porter was elected to the Texas Railroad Commission on November 2, 2010. A Certified Public Accountant and successful small business owner, Commissioner Porter has worked with oil and gas producers for nearly three decades providing strategic financial advice and tax counsel. He has a long record of pro-business, free market, conservative credentials. Visit www.rrc.state.tx.us for additional RRC information.

Austin Exploration Acquires Burleson County Eagle Ford Acreage

Austin Exploration gets Burleson County, TX, Eagle Ford Shale acreage by closing a previously announced deal. The company closed on two prospects, which expands the company's operations into the Eagle Ford and Niobrara. A few notable points in the Austin Exploration press release are that the company believes the formation is 300 feet thick in this area of Burleson County and expects initial production rates in excess of 800 barrels per day on wells spaced at 120 acres. The expected IP would be a good well almost anywhere in the play. The working interest (WI) compared to the net revenue interest (NRI) indicates the company has a total royalty burden of approximately 25%. That's a big royalty for an unproven area. I'd be interested to hear if that includes some assignment or override to the company or broker who initially leased the acreage. 

Austin Exploration Limited (ASX:AKK) is pleased to announce that settlement of its two North American Oil and Gas Shale assets has successfully been completed, with a fully funded multi-well drill program due to commence mid next month.

Austin has acquired more than 16,000 acres that lie within two of the most prolific Oil and Gas Basins in North America. Both properties are located in close proximity to infrastructure and drilling conditions are excellent.

Approximately 11,000 acres have been acquired in Freemont County, Colorado, covering the Niobrara Shale within the Denver Julesburg (D.J) Basin. An additional 5,000 acres covering the Eagle Ford Shale have also been acquired in Burelson County, Texas.

The first well has been set to spud on Monday the 19th September 2011, US time. The Company will first drill 3 vertical wells, after which engineers will examine and review the electronic logs and the core samplesfrom the 3 wells. The best results from these wells, in terms of oil production and formation characteristics, will be re-entered and a 5,000ft horizontal "multi-stage frac" will be drilled into the Eagle Ford formation. An independent report on Austin's acreage has highlighted potential for 32 development wells with potential of 179,000 - 810,000 barrels of oil per well from the formation, with additional potential from Austin Chalk and Buda/Georgetown Limestone (see ASX announcement 7 July 2011).

E.F. SHALE "BIRCH PROSPECT" - BURLESON COUNTY, TEXAS

PROJECT HIGHLIGHTS:

1. Approx 5,000 acres with a 93.5% Working Interest and a 70% Net Revenue Interest

2. Interpreted thickness of 300 feet in Eagle Ford formation

3. The Shale is mainly clay-rich limestone with low quartz content making less brittle than typical shale reservoirs (Barnett), yet with high fracturing capability.

4. Potential IP for horizontal well of > 800 BOPD.

5. At 120 acre spacing, this will allow for 32 wells to be drilled horizontally.

South Texas Oilfield Jobs that Pay

Another nod to Eagle Ford Shale Job Growth:

Thankfully, despite the grim news about our floundering economy, Texas is actually not a bad place to be job hunting. It's the top state for creating jobs in the country. San Antonio, Austin, Houston, and Dallas are all growing steadily in energy, technology, and education jobs, and San Antonio looks to be the best of all. Credit that in part to the low cost of living (8-10 percent below the national average) and to the fact that San Antonio has a steady flow of college grads coming into the market every year: 35,000 brave souls who chose not to hide out in the ventilation system. The younger demographic allows many companies to fill entry-level positions. Medtronic and Nationwide opened up shop here because of all these eager graduates, and Toyota relocated its Tacoma operation here from California to take advantage of all the high school and college tech graduates. Youth attracts business, and we've got a lot of you.

"That's one of the things that's helped keep us a little more stable than other cities," says Becky Bridges, vice president of communications at the San Antonio Chamber of Commerce.

The local chamber just released its economic forecast for job growth, and the biggest increases are being seen in manufacturing, natural resources/mining (credit that South Texas oilfield boom), trade and transportation, government, and leisure.

Read the full news release at sacurrent.com

Search our database of hundreds of job openings at our Eagle Ford Jobs page

Eagle Ford Shale Jobs Available

Available jobs in the Eagle Ford Shale are now easier than ever to locate through the Eagle Ford Jobs section. For employers, introductory pricing is available to list your job openings specific to the Eagle Ford Play. This weeks job highlight is an open position from Avanti Environmental. The company has a job opening for a "Regional Manager for Environmental Oil & Gas Inspection Services (San Antonio Area)". Visit the jobs page to find out more.

The job market in the play is booming across South Texas. Not only are employers from large oil and gas cities like Houston, Dallas, and Oklahoma City looking for help, but the smaller towns such as Victoria, Carizzo Springs, Catoula, and others across the play are also ripe with job opportunities. If you're looking for a job in the Eagle Ford, be sure to check the Eagle Ford job listings for your opportunity.

Check back weekly for updated job listings and be sure to utilize the filters and search function to find jobs in your field, with a certain company, or in the nearest town.

Here's a recent quote about the job market from a mysanantonio.com article:

While the job market tightened up slightly last month, experts are still calling San Antonio one of the best places in the country to find a job. It looks like the jobs will continue to come in three key areas. The medical, energy and manufacturing industries.

There are still new jobs coming to San Antonio, but there are still plenty of people looking for work at the Workforce Solutions Alamo office on the west side. Among those scouring the internet for work was David and Jeanette Medina. Both are looking for jobs. He's in the manufacturing business and she's a radiologist. If he gets a job first, they'll likely move to Fort Worth. But if she gets a job, it might mean staying here.