SM Energy Plans 100 Operated Eagle Ford Completions in 2014

SM Energy Eagle Ford Acreage Map
SM Energy Eagle Ford Map

SM Energy plans to spend $900 million in the Eagle Ford in 2014.

Approximately $650 million is planned for the company's operated position where 100 Eagle Ford completions are expected. An additional $250 million will be spent on acreage operated by Anadarko.

The company's costs carry from Mitsui will be exhausted in the first half of the year. From that point, SM Energy will be responsible for its working interest share of costs.

Read more:SM Energy and Mistsui Agree to Eagle Ford Joint Venture

Five rigs and two dedicated frack crews will run on the company's operated acreage. Operated activity in 2014 will be split between Galvan Ranch and Briscoe Ranch.

“We anticipate that our announced program will generate strong returns and will allow SM Energy to post another record year of production in 2014. ”
— Tony Best, CEO

Read more at sm-energy.com

Eagle Ford Regional Rig Count 269 - TexStar Building Eagle Ford Pipeline to San Antonio for Calumet Refinery - Dec 30, 2013

Calumet Products San Antonio Refinery
Calumet Products San Antonio Refinery

The Eagle Ford Shale rig count rose by two rigs to 269 running over the past week.

In Eagle Ford news this past week, TexStar Midstream signed an agreement with Calumet Specialty Products Partners to construct, own, and operate a 30,000 b/d pipeline system that will deliver Eagle Ford crude to Calumet’s San Antonio Refinery.

Read the full article: TexStar Is Building An Eagle Ford Pipeline From Karnes to San Antonio for Calumet

The U.S. rig count dropped by 11 rigs from 1,768 to 1,757 running over the past week. A total of 374 rigs are targeting natural gas (2 more than last week) and 1,382 (13 less than last week) are targeting oil in the U.S. The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.). 835 or 47.5% of rigs active in the U.S. are running in Texas.

Baker Hughes rig count is quoted here. Baker Hughes also releases its own Eagle Ford Rig Count that covers the 14 core counties (229 rigs). The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

[ic-l]The natural gas rig count decreased by one rig to 29 running this past week. At this time in 2012, there were more than 60 rigs and in 2011 there were more than 90 rigs targeting natural gas in the area. Don't be surprised if this is the bottom and we see more natural gas rigs in 2014. Natural gas essentially stayed level around ~$4.40/mmbtu on Friday afternoon.

The oil rig count jumped three rigs to 240 rigs running. WTI oil prices held basically flat on the week at just under $99/bbl. Eagle Ford light crude traded at $96/bbl on Dec. 20th.

A total of 230 rigs are drilling horizontal wells, 21 rigs are drilling directional wells, and 18 rigs are drilling true vertical wells. Karnes, DeWitt, La Salle, and McMullen counties all have between 28 and 32 rigs running. See the full list of drilling by county below.

South Texas Oil & Gas News:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts - Daily or Weekly Email Alerts

Eagle Ford Shale Drilling by County

Eagle Ford Operated Rig Count By Company

SmithBits no longer reports its operated rig count, but we'll have updated number for you from a new source soon. Until then, you can reference our numbers from mid-April. There has not been a significant change in the overall rig count since this date:

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 Baker Hughes 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.

Halcon Reduces 2014 Capital Spending Plans - Production Guidance Flat

El Halcon Eagle Ford Play Map
El Halcon Eagle Ford Play Map

Halcon Resources is lowering its capital budget for 2014 and keeping its production guidance the same at 38,000-42,000 boe/d.

The company originally planned to spend more than $1 billion, but has lowered its budget 14% to $950 million.

Approximately $125 million will be spent on leasehold, infrastructure, and seismic. Halcon also plans to divest $300-400 million in properties in 2014.

“We expect to fund our entire 2014 capital budget with a combination of cash flow from operations, borrowings under our revolving credit facility and proceeds from additional non-core asset sales.”
— Floyd C. Wilson, CEO

Read more at halconresources.com

Eagle Ford Growth Means Opportunity - TED Talk

Tom Tunstall delivered an Eagle Ford presentation at TED San Antonio earlier in the fall. The Eagle Ford is a major development on a world-wide scale and is providing opportunity for many in South Texas.

Takeaways from the presentation include:

  • Eagle Ford is visible from space like the Great Wall of China
  • Development is happening is what used to be the poorest counties in Texas
  • $61 billion economic impact in 2012
  • Eagle Ford production will surpass 1 million b/d of oil in 2014
  • Be careful what you believe as "Truth"
  • Techniques for capturing shale gas and oil were unveiled by smaller independent operators
  • Sustainable development plans are needed to support growing communities

DON’T LOSE IT! - Medical Certification Required for CDL Drivers

Tanker Truck on the Highway
Tanker Truck on the Highway

Effective January 30, 2015, all drivers with a commercial driver’s license (CDL) must have a current medical certification registered with the Texas Driver’s License Agency, Department of Motor Vehicles Division. That includes oilfield drivers working in the Eagle Ford Shale.

Original Deadline was January 30, 2014, and that has been extended to January 30, 2015

Download the Texas CDL Self-Certification Affidavit HERE

All CDL holders must provide information to their state driver’s license agency (SDLA) regarding the type of commercial motor vehicle operation they drive in or expect to drive in with their CDL. Drivers operating in certain types of commerce will be required to submit a current medical examiner’s certificate to their SDLA to obtain a “certified” medical status as part of their driving record. CDL holders required to have a ”certified” medical status who fail to provide and keep up-to-date their medical examiner’s certificate with their SDLA will become ”not-certified” and they may lose their CDL.

It is the drivers’ responsibility to keep their medical certification up to date. Drivers who do not submit a medical certification prior to it expiring will find that their CDL license will be downgraded to a non CDL license. They’ll lose their commercial motor vehicle operation privileges. In order to regain the CDL a driver will have to complete all written and skills tests all over again.

While registering the certificate is the responsibility of the individual driver, employers have a stake in the matter. They stand to lose valuable drivers who fail to comply with the regulation. So it’s in the employers’ interest to inform their drivers of the requirement. Follow up and make sure all commercial motor vehicle drivers have taken steps to keep their CDL in force.

Each state is handling the matter of medical certificates differently. For specific state-by-state requirements for drivers and information related to how a state is handling the Medical Certification requirements, and to determine whom to contact for additional information, click on the following link: http://www.aamva.org/aamva/DocumentDisplay.aspx?id={687D99D3-FFB5-4B76-BD6F-F5EF54728BE0

A Case Study

John Rojas, Education Specialist for Mike Byrnes and Assoc., Inc., relates his experience:

I personally renewed my CDL license at the local DMV in Corpus Christi. Fortunately I scheduled my visit perfectly because I was in and out of there in about 30 minutes. I had to complete a self-certification affidavit (CDL-7 form). The form is pretty simple to fill out and all you have to do is check what type commerce you operate in. This form will determine your eligibility to operate a commercial vehicle with or without a current medical certificate.

Since I renewed my license at my local DMV they relayed my information to the enforcement and compliance service for me.

How Eagle Ford Drivers Can Self-Certify

Self-certify by completing a CDL-7 form. You can do this via the Internet. Go to www.dps.texas.gov/driverlicense. Complete the form online and save it in PDF format. Then email that PDF to [email protected].

Need help deciding the type of commerce in which you plan to operate? Read the information for DOT medical certification requirements that you’ll find at http://www.txdps.state.tx.us/DriverLicense/medCertReq.htm .

You can also print out the CDL-7 form and mail it to:

Texas Department of Public Safety Enforcement and Compliance Service

Attn: CDL Section P.O. Box 4087 Austin, TX 78773-0320 Or you can fax it to 512-424-2002.

Depending on what type of commercial driving you do you may also need to get a medical examiner’s certificate. (All but one of the four Categories require one.) If your driver’s license is current but you have not submitted a copy of your current medical card to the enforcement and compliance service you can submit it yourself. Send a copy of your medical card by mail or fax, or email it. Note that documents submitted by email must be in PDF format, so you may need to scan that medical certificate and save it as a PDF.