Matador Eagle Ford Capital Budget to be $318 Million in 2014

January 29, 2014 Kirk Eggleston

Matador estimates approximately $318 million or 72% of its $440 million 2014 capital budget will be directed to the Eagle Ford Shale in South Texas.

Development of the company assets in the formation is expected to be the primary focus this year.

Matador Drilling and Operating Plans for 2014

The company anticipates completing 49 gross (46.0 net) Eagle Ford wells and has plans to turn 43 gross (40 net) wells to sales in 2014.

The company also plans one exploration well testing the Buda formation.

Matador plans to operate two contracted drilling rigs in the Eagle Ford in 2014.

Matador Acreage Asset Acquisition in Eagle Ford in 2013

Matador expanded in the Eagle Ford in 2013 through the acquisition of 1,720 gross (1,660 net) acres.

Pad & Batch Drilling in the Eagle Ford

In 2013, the company yielded strong production numbers, despite having up to 20% of its production capacity shut in during the fourth quarter of 2013. Matador stopped production on some of its Eagle Ford wells to frack off-setting wells.

The practice referred to as "pad and batch drilling" has been used widely by Matador in the Eagle Ford.

Matador in the Eagle Ford at a Glance for 2014

$318 million slated for development in the play
43 gross (40 net) wells turned into sales
1,660 net acres acquired in Eagle Ford in 2013
Pad and batch drilling being utilized across the play

Sanchez Energy's Reserves Near 60 Million Barrels - Production Surges in Q4

January 28, 2014 R.T. Dukes

Sanchez Energy's proved reserves are up 178% from a little more than 20 million boe at year-end 2012 to 58.9 million boe at December 31, 2013.

Reserves increased as a result of successful development in the Eagle Ford and multiple acquisitions during 2013.

In the fourth quarter alone, Sanchez grew Eagle Ford production 60% over the third quarter to 18,810 boe/d. More impressively, the company increased production year over year by 905%.

Also read:Sanchez Energy Plans to Spend $600 Million in the Eagle Ford in 2014

[ic-l]A total 32 net wells were brought online in the fourth quarter 15 additional wells are in some stage of drilling and completion.

A strong fourth quarter puts the company is a great position to reach the high end or outperform guidance of 21,000-23,000 boe/d in 2014. Contributions from the Tuscaloosa are not accounted for in guidance, so success there will only increase the likelihood of the company outperforming guidance.

“2013 was a transformative year for the Company. Our production and reserves grew tremendously as a result of successfully executing our 2013 capital plan and completing several acquisitions.”

— Tony Sanchez, III, CEO

Sanchez Energy was busy in 2013. The company made several acquisitions to supplement its acreage in the Eagle Ford and stepped out of the play for the first time by acquiring acreage in the Tuscaloosa Marine Shale.

A few highlights from 2013 include:

March 2013 - Sanchez Acquires Hess' Eagle Ford Assets for $265 Million
July 2013 - ZaZa Sells Eagle Ford Assets to Sanchez Energy for $28.8 Million
August 2013 - Sanchez Energy Pays $78 Million to Acquire 40,000 Net Acres in the Tuscaloosa Marine Shale
September 2013 - Sanchez Energy Acquires Rock Oil's Eagle Ford Properties for $220 Million
October 2013 - Sanchez Energy Increases Q3 2013 Production Seven Fold Over Q3 2012

Drilling in 2014 will be focused on operated properties and the company is moving forward with development at 40-acre spacing in the Cotulla, Palmetto, and Wycross areas.

Read the full operational update at sanchezenergycorp.com

Eagle Ford Rig Count - 263 - Texas to be 8th Largest Oil Producer by End of Year - January 24, 2014

January 27, 2014 Kirk Eggleston

The Eagle Ford Shale rig count decreased by four rigs to 263 running over the past week.

It's worth taking note that the state of Texas, due mainly to the lucrative Eagle Ford Shale, is positioned to be the eighth largest oil producer in the world by the end of the year. If the state stays on its current path it will surpass Iraq, Kuwait and Mexico by 2014. Read more here: Texas Could Be the Eighth Largest Oil Producer in the World by Year End

The U.S. rig count stayed flat at 1,777 running over the past week. A total of 356 rigs are targeting natural gas (9 less than last week) and 1,416 are targeting oil in the U.S. (8 more than last week). The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.). 839 or 47% 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 (216 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 two rigs to 33 running this past week. Average rig counts for natural gas production in 2012 were around 82 and then dropped to around 41 in 2013. Over the past week, natural gas rose slightly to ~$5/mmbtu on Friday afternoon.

The oil rig count decreased by 3 to 229 rigs running. WTI oil prices increased slightly, trading at $95.84/bbl by the end of the week. Eagle Ford light crude traded at $93.25/bbl on January 24th.

A total of 230 rigs are drilling horizontal wells, 19 rigs are drilling directional wells, and 14 rigs are drilling true vertical wells. Karnes, DeWitt, La Salle, Dimmit and McMullen counties each have at minimum 24 rigs running. LaSalle County has the highest rig count this week at 31. See the full list below in the Eagle Ford Shale Drilling by County:

South Texas Oil & Gas News:

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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.

Ice Storm Hits the Eagle Ford

January 24, 2014 Kirk Eggleston

Frigid temperatures could have an impact on operations in the Eagle Ford as the mercury hovers below the freezing mark for most of Friday morning. The wintry mix began hitting the counties covering the Eagle Ford formation late on Thursday night.

Due to the adverse weather conditions, non-critical work may be delayed and completions could be postponed. Black ice and slippery roads will also likely impact efficiency for logistical operations across the Eagle Ford.

Although the weather may be a burden to operations in South Texas, the industry is no stranger to cold weather. Workers in the Bakken oilfield have experienced crippling conditions due to dramatically cold temperatures throughout the winter.

Freeze offs from the cold weather will likely have a larger impact further north where temperatures have dipped much further below freezing.

Weekend temperatures in South Texas will be back into the high 60's and 70's, so interruptions should be temporary

For more on the weather in South Texas this Friday, visit nowww.accuweather.com

Comstock Resources Fourth Quarter Delays Push Eagle Ford Growth Into 2014

January 23, 2014 R.T. Dukes

Comstock Resources planned to complete 18 gross (12 net) wells in the Eagle Ford between November and December of 2013.

Delays in completing the wells forced longer shut-ins for adjacent wells and the new wells didn't reach first production until late in December and January.

Comstock brought 10 gross (7.3 net) Eagle Ford wells to production in the last week of December and added 9 gross (6.3 net) in early January of 2014.

Also Read: Comstock Focused on the Eagle Ford - Planning to Spend $400 M in 2014

Current production as of January 21st was 10,000 b/d of oil and the company had 23 gross (17.2 net) Eagle Ford wells waiting to be completed.

Eagle Ford Drives Comstock's Reserves Growth

Development in the Eagle Ford helped Comstock grow proved reserves to almost 22 million bbls and 453 Bcf. Comstock added 5.3 million barrels and 5 Bcf of reserves in the Eagle Ford in 2013.

Read more about Comstock's latest expansion in the region: Comstock - Ursa Reach Eagle Ford Deal Worth $66.5 Million

Overall, Comstock is reporting proved reserves of 584 Bcfe at December 31, 2013. That compares favorably to 551 Bcfe the company reported on December 31, 2012.

Read the full press release at comstockresources.com