Southcross Energy Adding Eagle Ford Natural Gas Processing & Fractionation

Southcross Energy S. TX Plants

Southcross Energy announced an expansion to its South Texas natural gas processing and fractionation complex. Southcross is adding the Bonnie View Fractionator in Refugio County, 25 miles north of Corpus Christi. The fractionator will have initial capacity of 11,500 bbls/d of natural gas liquids (NGLs) and can be expanded to 15,000 bbls/d.

This plant is in addition to company's previously announced Woodsboro gas processing unit in the same area and the company's Gregory gas processing plant and fractionator east of Corpus Christi in San Patricio County. The Woodsboro gas processing facility has capacity of 200 mmcfd and the Gregory unit has capacity of 135 mmcfd. The Gregory fractionator will also expand to full utilization at 4,800 bbls/d of NGLs.

In conjunction with the new Bonnie View Fractionator, the company will also construct pipelines that will interconnent the facilities and alleviate current constraints in the NGL products and residue gas markets. Southcross Energy will have a total of 335 mmcfd of processing capacity and full utilization capacity of 17,300 bbls at its fractionators when the project is completed.

BP's Eagle Ford Shale Position Reaches 450,000 Net Acres - 6 Tcfe

BP Eagle Ford Shale Map

BP's Eagle Ford acreage position has swelled to 450,000 net acres, with potential reserves of 6 trillion cubic feet of gas equivalent or 1 billion barrels of oil equivalent. That's a big jump from the rumored 100,000+ acres the company was thought to have just a little over a year ago.

The company acquired its position over the past two years through multiple deals that also involved its operating partner Lewis Energy. Lewis has 10 rigs active across the area and with higher natural gas prices the companies would probably be doing much more. Approximately half of the company's acreage is situated in the dry-gas window of the play. 

This will be an interesting development to watch. BP and Lewis have committed significant capital to the area and the gas-condensate portion of the acreage provides development opportunity for BP in an onshore U.S. portfolio that is very much dry-gas weighted.

Boardwalk Adding 150 mmcfd Eagle Ford Processing Plant - Expands Gathering

Boardwalk Pipeline Partners has started a $180 million expansion. The Eagle Ford pipeline and midstream company plans to add 55 miles of 20" and 24" pipeline to its existing 340 mile gathering system, while adding a 150 mmcfd Flag City processing plant near Edna, TX. The expansion is supported by long-term fee-based agreements.  Anchor shippers include Statoil and Talisman, who operate a partnership that cuts through the core gas-condensate window in DeWitt County, Karnes County, LaSalle County, Live Oak County, and McMullen County.

Read more at bwpmlp.com

Anadarko's Eagle Ford Assets Added 50,000 boe/d in 2011

Anadarko operated an average of 10 rigs in 2011, while growing gross production from 27,000 barrels equivalent per day to 77,000 barrels equivalent per day year over year. Production was comprised of 50,000 bbls/d of liquids and over 160 mmcfd of gas. The company grew company wide liquids production by 10% in 2011 and expects comparable growth rates going forward. Liquids growth was primarily driven by the Bone Spring, Eagle Ford Shale, Greater Natural Buttes area, and the Wattenberg field.

Horizontal liquids plays have become the focus of what is a diverse natural gas portfolio. Anadarko was well positioned to transition activity to liquids plays as natural gas prices fell. The Eagle Ford and Wattenberg will be important development areas for many years to come.

Highlights from the quarterly call included:

• Delivered record sales volumes of 248 million BOE (barrels of oil equivalent), driven by a 10-percent year-over-year increase in liquids
• Added 392 million BOE of proved reserves, replacing 159 percent of production
• Achieved 80-percent success rate in offshore exploration and appraisal drilling programs
• Established net resource potential of 500 million to 1.5 billion BOE in the Horizontal Wattenberg
• More than tripled the original recoverable resource estimate offshore Mozambique to 15 to 30-plus trillion cubic feet (Tcf)

Read more at our Anadarko Eagle Ford Shale page.

Pioneer Taps the Brakes in the Eagle Ford

Pioneer Natural Resources had planned to grow its rig count to 14 in 2012, but 25% of the company's development was set for dry gas. With natural gas prices below $3/mmbtu, Pioneer is backing off and delaying the two new rigs until 2013. The company still plans to have 19 rigs running by 2015. Production also made a considerable jump in the fourth quarter. The company produced more than 20,000 boe/d, compared to 14,000 boe/d in the third quarter. Gathering constraints are being eased and more companies are seeing significant production jumps. 

The company's well costs are expected to run $7-8 million per well in 2012 and the white sand, instead of ceramic, proppant will be used in 50% of the company's wells. White sand saves the company $700,000 per well.

The company's midstream partnership with Reliance Industries will also complete three additional central gathering plants in 2012. That will bring the total number of gathering plants to 11 across the company's acreage.

Read more at the Pioneer Natural Resources Eagle Ford page.