Global Petroleum - Texon Petroleum Well Results Improving

Global Petroleum and Texon Petroleum's second Eagle Ford well shows a 24% production improvement over the first. The McMullen County well averaged 732 boe/d (89% liquids) over the first 60 days.

The company today relayed a statement from project operator Texon Petroleum (ASX:TXN), which said the Tyler Ranch EFS No.2H well produced 38,677 barrels of oil and 31.33 million cubic feet of gas over 60 days.

 

The average daily production rate from the well reached 732 barrels of oil equivalent per day (boepd).

Texon has also corrected previously reported production figures for the well for the first 30 days, saying that average output rate from Tyler Ranch EFS No.2H was 817 boepd and the mistake occurred due to a faulty oil meter.

Read more at proactiveinvestors.co.uk

San Antonio TX Flights Increasing for the Eagle Ford

The San Antonio International Airport will likely begin servicing more direct flights as major offices for Halliburton, Schlumberger, and others open in the city. Direct flights will make San Antonio a more frequent air travel destination for more than just oil and gas employees. Direct flights mean more tourist as well. Flights are on the rise as we're already seeing a greater number of aircraft charters across the area. Many chartered flights run smaller planes that can land on shorter runways. That means higher utilization of the many FBOs in South Texas too.

Local business and aviation officials hope rising air traffic from the Eagle Ford Shale oil-and-gas boom will help San Antonio International Airport land more coveted direct flights.

Read more at bizjournals.com

Total in the Eagle Ford?

Total may be on the prowl for additional shale assets. The company acquired a 25% interest in Chesapeake's Barnett properties in early 2010. The company could be CHK's most recent JV partner in the Utica, but the partner has not been publicized. Total is openly un-satisfied with its U.S. holdings and has plans to expand. An expansion in the Eagle Ford will undoubtedly have to come through acquisitions. There simply isn't enough acreage available for a company of this size ($113 Bn market cap as of Nov. 2011). Watch for the middle of the pack to get swallowed up (consolidated) by the big guys as we enter the next stage in the Eagle Ford's life cycle.

"It will be a natural progression" for Total to focus its shale expansion on  liquids areas such as Texas's Eagle Ford and Ohio's Utica, Bannerman said later answering question from reporters. 

Compared to the company's global portfolio, the company is not "satisfied" with the size of its assets in the U.S. shale sector and it's looking to increase its presence, said John Bannerman, president and chief executive of Total USA, who was answering questions from the audience at an energy conference in Houston.

 

Eagle Ford Task Force - Water Issues at the Forefront of Agenda

The Eagle Ford Task Force met November 2, at the UTSA campus in downtown San Antonio. Water issues are at the forefront of the task force's agenda. Six experts invited by RRC Commissioner David Porter addressed the task force. Two of the presentation and the agenda can be accessed below

Both Darrell Brownlow, a geologist, and Stephen Jester, an engineer with ConocoPhillips, indicated there should be ample water to supply fracking needs in the Eagle Ford. Brownlow estimates that for every 1 acre-foot of water used in fracking that 280 acre-feet are used for other purposes. Jester estimates that at peak consumption the Eagle Ford will only account for 5-6.7% of water demand in the 16 county region he evaluated. That's really focusing in on the core. The aquifers in the region cover much more than 16 counties.

Advancements in completions are also decreasing the amount of water used in each well. Early on, operators reported using 125,000 bbls or more in completions, but some are now using less than 85,000 bbls of water per well and Jester believes that number will continue to decline on an efficiency basis.

Brent Halldorson of Fountain Quail Water Management addressed the potential of recycling flow back water (water produced after a hydraulic fracture completion). The industry has the opportunity to recycle as much as 15-20% of the water it uses in hydraulic fracturing. Fountain Quail recently opened a water treatment plant in Kenedy, TX.

One attendee brought up the fact that water used in fracking is taken out of the hydrologic cycle and not replaced, but several industry participants made sure the panel was aware that natural gas combustion creates water and that some have estimated the same amount of water used in fracking is produced from combustion of natural gas in the first few years of an Eagle Ford well's life. Interesting.

The Eagle Ford Task Force plans to meet once a month to address issues and concerns related to the Eagle Ford. Stay up to date with task force news at our Task Force News page.