U.S. Energy & PetroQuest Eagle Ford Ops Updates Jan 31

U.S. Energy's upstream properties are located in the Bakken, Eagle Ford, and onshore Gulf Coast. The company didn't provide well results, but did give an update on the progress of two wells:

The initial well at the Booth Tortuga prospect, the Beeler #1H well, has been completed with 20 fracture stimulation stages and initial well flow back operations have commenced. The operator plans to evaluate initial well results over the course of the coming weeks. The Company has an approximate 30% WI and 22.5% NRI in this well.

The KM Ranch #2H well has been drilled to depth and it is anticipated that fracing operations will commence in February 2012. The Company has an approximate 30% WI and 22.5% NRI in this well.

PetroQuest's Eagle Ford operations will include the drilling of 2-3 wells in 2012. The company will allocate less than 10% of its capital to the Eagle Ford.

In South Texas, the Company completed two non-operated Eagle Ford Shale wells (NRI - 19 %) located in La Salle County. The wells achieved 24 hour maximum gross daily production rates of 725 Boe/d (70 % oil) and 505 Boe/d (69% oil), respectively. The Company expects to drill two to three Eagle Ford Shale wells during 2012 in La Salle County.

Comstock Resources Plans $193 Million With Two Rigs Through 2012

Comstock Resources Eagle Ford assets will have $193 million directed their way in 2012. The company will spend over $165 million to drill and complete 24 gross (21.7 net) wells, while also spending $27.7 million to finish 4 gross (3.2 net) wells that were started in 2011. Comstock Resource's Eagle Ford acreage is predominately located in McMullen and Atascosa counties. The company announced an increase in reported reserves of 25%, along with a 16% cut in capex. 2012 spending was lowered from $545 million to $458 million. The change was a direct response to sub-$3 natural gas prices.

Comstock is making a shift to liquids from gas. Current gas prices the Eagle Ford and West Texas make the areas much more attractive than the company's legacy gas properties.

Magnum Hunter Lavaca County Well Produces More than 2,000 boe/d

Magnum Hunter Resources Eagle Ford operational update from the fourth quarter included the company's best well to date. The Snipe Hunter #1H, in Lavaca County, was drilled to a total measured depth (TMD) of more than 16,000 ft and produced over 2,000 boe/d in the first 24 hours. Magnum Hunter is having success testing longer laterals with additional frack stages. The Snipe well included a horizontal lateral that extended over 6,000 ft.  The company provided details for all four wells that were completed before year-end 2011:

  • The Furrh #2H which was drilled to a measured depth of 15,876 feet (horizontal lateral length of 5,945 feet), was fraced with 20 stages and placed on production November 11, 2011. The 24 hour flowing initial production rate ("IP") was 1,275 Boepd on a 19/64" choke with 1,680 psi FCP. Magnum Hunter operates the Furrh #2H and owns a 50% working interest.
  • The Kudu Hunter #1H was drilled and cased to a measured depth of 16,412 feet (horizontal lateral length of 5,696 feet), and was fraced with 20 stages in mid-November. The 24 hour IP rate was 1,590 Boepd on a 22/64" choke with 2,200 psi FCP. The Kudu Hunter #1H was placed on production November 26, 2011. Magnum Hunter operates the Kudu Hunter #1H and owns a 46.3% working interest.
  • The Snipe Hunter #1H was drilled and cased to a measured depth of 16,202 feet (horizontal lateral length of 6,094 feet), and was fraced with 23 stages in late December. The 24 hour IP rate was 2,033 Boepd on a 20/64" choke with 2,100 psi FCP. The Snipe Hunter #1H was placed on production December 30, 2011. Magnum Hunter operates the Snipe Hunter #1H and owns a 50% working interest.
  • The Leopard Hunter #1H was drilled and cased to a measured depth of 16,936 feet (horizontal lateral length of 6,708 feet), and was fraced with 25 stages in early January. The 24 hour IP rate was 1,333 Boepd on an 18/64" choke with 1,700 psi FCP. The Leopard Hunter #1H was placed on production January 8, 2012. Magnum Hunter operates the Leopard Hunter #1H and owns a 50% working interest.

 

Eagle Ford Bank Deposits Setting the Pace in Texas

Bank deposits in South Texas are benefitting from a growing population of skilled workers who have higher paid oil & gas jobs and mineral owners who are reaping the benefits of new found royalties. Bank deposits grew a little over 10% from 2008-2011 across Texas, but deposits in South Texas grew more than 15%. While that's impressive, I expect the gap will only widen in the next couple of years. Development activity just began hitting its stride in 2011. Royalties are trickling in, but there is much more to come. In many wells, there are dozens to hundreds of people cashing royalty checks once production starts.

Read the entire news release at bizjournals.com