Eagle Ford Oil Rig Count Record at 228 - 279 Rigs Running Sept 21, 2012

Tanker on Display at STX EF Expo
Tanker on Display at STX EF Expo

Eagle Ford Shale drilling grew by six active rigs this past week to reach 279 units. The week was largely dominated by headlines regarding the South Texas Oilfield Expo in Corpus Christi. Several hundred vendors who supply and service the oilfield in the Eagle Ford were in attendance. You're welcome to read more in regard to our time there in our Notes from the Expo.

In a positive note for the gas window of the Eagle Ford, Escondido Resources announced a record natural gas well in Webb County. The Spohn Ranch 1H well came online at more than 16 mmcfd and produced 0.4 Bcf in its first month.

Eagle Ford Oil & Gas Rigs - New Oil Rig Count Record 217

The number of natural gas rigs running fell to 47 this week. That's a new low for everyone keeping count. It was mentioned last week and I'll say it again even though we had a record natural gas well reported. Most operators expect to have most lease held-by-production this year and we're seeing the result. Where possible, rigs are moving to oily targets.  There are a record 228 oil rigs working the region. That surpasses the old record of 217 set just last week.

One water well is being drilled in Bastrop County, while Karnes, Leon, and McMullen counties all have disposal wells being drilled.

Henry Hub futures were trading at ~$2.89 on Friday afternoon. That's a six cent decline from last week. Spot prices fell almost twenty cents to $2.76 to end the week.

WTI was trading at ~$93/bbl Friday afternoon. After trading near $96/bbl for a month, we close last week at $99/bbl and we've now dropped to $93/bbl in one week. The market isn't quite sure where it is going next. Eagle Ford crude priced at just over $100/bbl. That's eight dollars less per barrel than it did this time last week. Light crude and condensate in the area traded at $88.25 and $87.25, respectively.

There are 258 horizontal rigs running in the region. The four counties leading development are Karnes with 41 rigs, La Salle with 34, Dimmit with 32, and McMullen with 31. Webb (24), DeWitt (20), Gonzales (20), Atascosa (15), Frio (11), and Live Oak (9) round out the top Eagle Ford counties.

News items this week included:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts.

Eagle Ford Rig Count by Operator

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 rigs referred to in this article are for ALL drilling reported by SmithBits and not solely wells targeting the Eagle Ford formation. All land rigs 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 Drilling by County

Eagle Ford Energy Boom is Just Beginning

"The Eagle Ford energy boom is just beginning" was the comment for Texas A&M University professors earlier in the week. Hotels and restaurants are already benefiting in Corpus Christi and other industries will be following along in short order. The influx of South Texas oilfield jobs is supporting the economy across the area and not just where drilling is active.

 

Eagle Ford Well Record for Natural Gas - Escondido Resources II

Petrohawk Eagle Ford Shale Map
Petrohawk Eagle Ford Shale Map

An Eagle Ford well record was recently set by Escondido Resources in the Hawkville Field in Webb County. The company completed the Spohn Ranch 1H well with a 6,975 ft lateral and 25 fracture stages. The well came online at more than 16 mmcfd and produced 0.4 Bcf in the first 30 days online. Escondido now has plans for additional development in the area.

Escondido is also pushing forward developing other horizons in South Texas. The company just completed its first horizontal "Escondido" well. Let's hope for the company's namesake this turns out to be a good investment. The first well indicates it will and the company plans seven follow up wells

The Storey 4H well is located in LaSalle County, Texas. in the Tres Encanto Field, an area also referred to as the White Kitchen Field. In its first 30 days of production, the Storey 4H averaged nearly 400 barrels of crude oil production per day along with 1.2 Mmcf of associated gas per day. The well was completed with eight frac stages over a 4,475-foot lateral.

A McMullen County Olmos formation well was also completed.

In its first 30 days, production from the Nichols 3H averaged more than 300 barrels per day and 1.1 Mmcf of associated gas per day. The well is the third successful horizontal oil well the company has drilled in the prolific AWP Field. The well was completed with 13 frac stages over a 6,667-foot lateral. The company is currently drilling three additional wells in the AWP Field.

Escondido currently produces more than 74 mmcfed from the Eagle Ford, Escondido, and Olmos formations across Webb, LaSalle, and McMullen counties. The company owns approximately 60,000 net acres, with Eagle Ford rights on approximately half that amount.

Read the full press release escondidoresources.com

Update & Notes from the South Texas Oilfield Expo 2012

Williams Scotsman S TX Oilfield EXPO
Williams Scotsman S TX Oilfield EXPO

Did you attend attend the South Texas Oilfield Expo? If so, share your experience in the comment section below.

The conference brought several hundred vendors and a few thousand oil & gas participants to Corpus Christi. The event was the largest held at the convention center since current management took over in 2004.

Here are a couple of things I noticed and heard on the floor:

Several of our advertisers were on hand as well:

Visit Eagle Ford Shale on Twitter for updates and photos from our time at the conference.

Waste Connections Acquires R360 Environmental for $1.3 Billion

R360 Environmental Locations
R360 Environmental Locations

Waste Connections is acquiring R360 Environmental Solutions for $1.3 billion. The deal gives Woodlands based Waste Connections operations in several key oil & gas basins across the country. R360 provides non-hazardous oilfield waste treatment, recovery and disposal services in the oil-rich Permian, Bakken and Eagle Ford Basins. Operations include 26 facilities across Louisiana, New Mexico, North Dakota, Oklahoma, Texas and Wyoming.

"Through acquisitions and new facility development, R360 has created leading positions in key basins, providing closed loop oilfield waste services within an increasingly stringent regulatory environment. This acquisition represents a natural extension of our existing E&P disposal activities," said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. "While a tepid economy has impacted MSW volumes, increased drilling activity in unconventional areas is fueling impressive organic growth within the E&P waste sector. R360 is actively permitting several new sites to further expand its operations in this growing industry."

"For R360, this is a terrific opportunity that should enable us to grow more rapidly," said Troy W. Thacker, Chief Executive Officer of R360 Environmental Solutions. "By combining our business and expertise with the scale, breadth and financial resources of Waste Connections, we will be able to enhance the environmental solutions we bring to our customers. Both companies value safety and protecting the environment as well as excellence and integrity in business practices. We believe that Waste Connections will be a great home for R360 and our team."

Read the full press release at wasteconnections.com