Eagle Ford Boom Pushes Holt Cat To Expand San Antonio Headquarters

Dynamic Gas Blending Motor - Holt Cat
Dynamic Gas Blending Motor - Holt Cat

As part of $77 million in investments across the state, Holt Cat plans to spend $10 million to expand it's San Antonio headquarters. The company will build a 47,000 square ft facility that will be able to handled 32-40 machines at any given time.

The expansion adds to the South Texas oilfield job boom. Holt Cat already has 90 open positions listed on its website and plans to hire even more technicians when the facility is completed in the second quarter of 2014.

Holt Cat rents, sells, and services heavy equipment. The company distributes the natural gas and diesel blending motor pictured (top left). The motor can be used in oil well completions and can save operators as much as $3,500 per day in diesel fuel costs.

“By having a state-of-the-art facility — especially one with air conditioning — it’ll give us a lot of advantage over other people as we compete for skilled technicians,” Hicks said. “We’re competing for workers not only within the industry but also the Eagle Ford (Shale),” the booming oil and gas play in South Texas.

Read the full story at fuelfix.com

Small Businesses in the Eagle Ford Getting Help From Local Colleges

Several universities in the region are stepping up to provide solutions to various challenges created by significant economic growth. UTSA has been active through its small business development center and TAMU Kingsville is adding programs to address challenges as well. If you haven't read the article, Tom Tunstall addressed community planning in the region in the article: Texas Ghost Towns & Implications in the Eagle Ford Shale

"It's like the old California gold rush," said Dr. Stephan Nix, Dean of the College of Engineering at TAMUK. "I mean, that was a great thing, but along with that came a lot of problems and a lot of issues. In many ways, this is the same."

Forest Oil's Eagle Ford Production Jumps 21% in the Second Quarter

Forest - Schlumberger Eagle Ford Acreage
Forest - Schlumberger Eagle Ford Acreage

Forest Oil agreed to a joint venture with Schlumberger in the Eagle Ford during the second quarter and it didn't take long for the company to increase its activity in the region. Forest Oil's operated Eagle Ford production grew 59% to 4,300 boe/d and net production grew 21% to 2,300 boe/d during the second quarter.

The company completed nine Eagle Ford wells at an average initial production rate of 529 boe/d and well costs have fallen from $7 million in 2012 to $6 million in the quarter.

The first seven wells completed with Schlumberger's HiWay flow channel technique were in various stages of completion at the end of the quarter. Watch for production results from these wells in the coming weeks.

“Our Eagle Ford Shale asset took a significant step forward during the quarter.... We recently ramped up our drilling activity further by adding a fourth drilling rig to the field. We are encouraged by recent well results as we implement ongoing technological refinements and enhancements to our drilling and completion process in an effort to optimize well results and costs.”
— Patrick R. McDonald, CEO

Eagle Ford production grew even though Forest Oil spent less in the Eagle Ford. That's the benefit of having costs carried by a partner. As a result of the financial terms of the Schlumberger deal,  Forest increased activity in the play while spending fell from $131 million in the first quarter to $74 million in the second quarter.

The companies are also expanding the use of micro-seismic and have subsurface data and reservoir studies ongoing.

In the quarterly release, Forest also announced plans to sell assets in the Panhandle to further improve the company's balance sheet. Read the full press release at forestoil.com

Halcon Focused On El Halcon - Completes Sale In Fayette & Gonzales Counties

Halcon Eagle Ford Drilling Statistics
Halcon Eagle Ford Drilling Statistics

Halcon Resources completed the sale of Eagle Ford acreage in Fayette and Gonzales counties for $144 million in the second quarter. The deal included 24,189 net acres, 1,811 boe/d of production, and approximately 3.6 million boe of reserves. The deal provides capital that will be used to expand the company's operations in its core areas (Bakken and El Halcon). The company plans to sell an additional 4,500 boe/d in 2013.

At the company's El Halcon prospect in Brazos County, four rigs began drilling 16 wells and four wells were brought to production during the quarter. The Eagle Ford wells had average initial production rates of 822 boe/d, which is lower than expected. Two of the wells had horizontal laterals that veered outside of the target zone. The two wells that were drilled in the optimal location produced an average of 1,016 boe/d.

“Halcón is making progress towards its goal of leasing 100,000 to 150,000 net acres in El Halcón.
”

Halcon will run 3-4 rigs in the El Halcon area in 2013 and is making progress toward expanding its position from 60,000 net acres to 100,000-150,000 net acres in the play. Watch for the company to further improve economics in the area as crews become more efficient. Drilling speed has already improved by 36% in most recent wells.

Halcon has 14 wells producing in the area with 9 wells waiting to be completed.

Read the full press release at halconresources.com

ConocoPhillips' Eagle Ford Production Doubles Over Past Year

ConocoPhillips Eagle Ford Acreage Map
ConocoPhillips Eagle Ford Acreage Map

ConocoPhillips produced 121,000 boe/d from the Eagle Ford in the second quarter of 2013, or roughly double the rate the company produced during the same period in 2012. Maybe even more impressively, production grew almost 20% from the first quarter.

Operators are literally hitting their stride in development mode in the Eagle Ford. Don't be surprised to see similar performance throughout the year as companies work to make their operations more efficient.

“We had a very strong quarter, with our base operations and turnaround activity performing as planned,” added Ryan Lance, CEO. “Production exceeded expectations as growth continued from our development programs, notably in the Eagle Ford.”

Conoco is running 11 rigs in the region and expects to it will hold all of its acreage with production by year-end. Rigs will begin to shift to pad drilling and we'll likely see additional efficiency gains.

Other notable highlights from the company's quarterly earnings release include:

  • Statement that "..our (COP) Eagle Ford position is truly best in class"
  • Established Eagle Ford position at a cost of $300/ acre
  • Reported peer leading average of 69% oil production from Eagle Ford wells
  • 65 operated wells were brought to production in Q2
  • Pumping more frac stages and seeing better results
  • 227,00 net acre position with potential 1.8 billion boe of resource
  • 1,900 identified drilling locations
  • Expects to hit 130,000 boe/d by 2017 (I'll say that's conservative)

Read the full press release at conocophillips.com