Rosetta Resources Hits Record Production and Proved Reserves in 2013

February 4, 2014 Kirk Eggleston

Rosetta Resources had a record setting year in 2013, increasing total annual production from ~37,000 boe/d in 2012 to 50,000 boe/d. That's an increase of 34%.

The company also increased its total reservesby 39% to 279 million boe.

Approximately 30% or 84 mmboe of the total added reserves came from Rosetta's successful development of the Eagle Ford.

“In 2013, we continued to deliver competitive growth in production and reserves while expanding our operations into a new basin. We remain focused on developing our Eagle Ford assets and committed to fully advancing our Permian Basin operations.”

— Jim Craddock. Rosetta's CEO

Rosetta Resources Eagle Ford Drilling and Completion Initiatives

In total, Rosetta spent ~67% of it's development budget in the Eagle Ford in 2013. $600 million was spent on drilling and completion activity in the Eagle Ford shale, with Rosetta drilling 111 wells and completing 79.

As of late 2013, Rosetta still had a lot of running room in the Eagle Ford. Approximately 23% of the wells the company has drilled in the Eagle Ford were sitting idle and waiting to be completed.

According to the company, well costs improved in the Eagle Ford and have fallen to $6.5 - $7 million for average wells.

Rosetta Resources Expanding in Delaware Basin

Rosetta is also expanding into other areas, including the Delaware Basin. On December 3o, 2013, the company entered an agreement to acquire assets in the basin for $85 million. The purchase covers 5,078 net acres (14,985 gross) in Reeves County.

Rosetta at a Glance in 2013

Total annual production up ~34% to 50,000 boe/d
Eagle Ford added 30% or 84 mmboe to company's reserves
$600 million spent on drilling and completion in Eagle Ford
Eagle Ford wells drilled - 111
Eagle Ford completed wells - 79
Purchase of 5,078 net acres for $85 million in Delaware Basin

The Studios at Carrizo Springs Provides State of the Art Eagle Ford Accomodations - Press Release

February 3, 2014 Kenny DuBose

Stratton Oilfield Systems has introduced a superior housing concept to the Eagle Ford Shale area.

Located one-half mile off of Hwy. 83 in Carrizo Springs, The Studios can accommodate almost 500 guests. The fully furnished, apartment-style suites are outfitted with resort quality furnishings and amenities and are situated on a paved, 25-acre site.

Stratton Oilfield Systems (SOS) has developed a keen understanding of the needs of oil field workers and the results are a resounding success. The Studios at Carrizo Springs is truly your Home Away From Home.

Accommodations for Oil Field Workers

“Stratton Oilfield Systems has developed a keen understanding of the needs of oil field workers and the results are a resounding success.”

A well-rested worker is a safer worker in the field, thus The Studios offer only full or king-sized beds in a quiet, secure environment.

Amenities include: daily housekeeping, weekly linen service, on-site laundry facilities, keyless building and room entry, DirecTV, Wi-Fi, a fully equipped exercise facility, and private training/conference rooms. The gated grounds are protected by 24-hour security with management and maintenance staff on the premises at all times.

The Two Bedroom Suites are 770 sq. ft., with 2 full size beds in each bedroom, a kitchenette, full-size refrigerator, microwave, coffee maker, dining area, and a large comfortable living room. The One Bedroom Suites are 322 sq. ft., with a kitchenette and a spacious, private bedroom featuring a king size bed and a desk. All the Suites are equipped with flat screen TVs in the living areas and bedrooms.

Recognizing the need for community space, SOS created a large recreation facility on the premises, aka “The Man Cave”. Residents can enjoy gathering around the 82” HDTV or the pool / domino / gaming /ping pong tables. Out of doors, guests can enjoy the NBA quality basketball goal, huge gazebos & professional horseshoe pits, all set in a grassed, four acre area.

Convenient Dining for Eagle Ford Workers

There is also a state-of-the-art Dining Facility operated by Taylors International. This is a full service, commercial kitchen, capable of serving three meals each day to 1,000 guests, in four separate dining rooms, if needed. There are three hot entrées offered at every meal service, always a salad bar and boxed lunches available to go. Guests have access to a fully stocked snack & drink area 24 hours a day.

Reasonable Daily Rates

With daily rates starting at $49.95, SOS has catapulted The Studios at Carrizo Springs to the top of the list for employee housing in the area. It is a safe, clean, comfortable, full-service location that sets a new standard for remote accommodations. Creating this type of model is not easy, but SOS clearly has it mastered. Of particular benefit to smaller companies is the fact that long-term contracts are not required. Stay a night, a week or a month.

More About Stratton Oilfield Systems

SOS's parent company, Stratton Securities, Inc. was established in 1987 and has an impeccable record of success working with the United States Military in providing housing to our servicemen and women. Stratton Oilfield Systems brings that same work ethic, experience, integrity, and attention to detail to the oil field industry to provide remote housing for your business’s most important asset – your employees.

For Reservations Contact: Tom Caufmann, Director of Operations 855.842.7799 909 Munson Road, Carrizo Springs, Texas Email: [email protected] Website: www.studiosatcarrizosprings.com

The article above was published through EagleFordShale.com’s press release distribution service. Learn more about Eagle Ford Advertising Here.

Eagle Ford Rig Count - 262 - Sanchez Energy's Reserves Near 60 Million Barrels - January 31, 2014

February 3, 2014 Kirk Eggleston

The Eagle Ford Shale rig count decreased by one rig to 262 running over the past week.

In recent news, Sanchez Energy' reserves increased from 20 million boe at year-end 2012 to 58.9 million boe on December 31, 2013. Reserves increased as a result of successful development in the Eagle Ford and multiple acquisitions during 2013. Read more: Sanchez Energy's Reserves Near 60 Million Barrels - Production Surges in Q4

The U.S. rig count increased by 8 to 1,785 running over the past week. A total of 358 rigs are targeting natural gas (2 more than last week) and 1,422 are targeting oil in the U.S. (6 more than last week). The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.). 842 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 (214 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 increased by three rigs to 36 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 decreased slightly to $4.85/mmbtu on Friday afternoon.

The oil rig count decreased by 4 to 225 rigs running. WTI oil prices increased slightly, trading at $97.73/bbl by the end of the week. Eagle Ford light crude traded at $94/bbl on January 31st.

A total of 230 rigs are drilling horizontal wells, 20 rigs are drilling directional wells, and 12 rigs are drilling true vertical wells. Karnes, DeWitt, La Salle, Dimmit and McMullen counties each have at minimum 25 rigs running. LaSalle County has the highest rig count this week at 30. See the full list below in the Eagle Ford Shale Drilling by County:

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.

Valero Refinery Expansions Pushed Forward by Eagle Ford Production Growth - $730 Million

January 31, 2014 Kirk Eggleston

Valero plans to build crude topping units at its Corpus Christi, TX refinery and its refinery in Houston.

The two expansions come with a price tag of $730 million, but will likely be needed if the growth of light-sweet crude oil from areas like the Bakken, Eagle Ford, and Permian Basin continue.

The company's plans include adding a 70,000 b/d unit at the Corpus Christi refinery at an estimated cost of $340 million and a 90,000 b/d topping unit in Houston at a cost of $390 million.

Valero announced plans to add the 90,000 b/d unit at its Houston facility at an estimated cost between $220 - $280 million early in 2013. According to Valero Spokesman, Bill Day, those costs are now projected at $390 million for the 90,000 b/d unit.

Eagle Ford Crude Oil Production Driving Refinery Expansions

Eagle Ford Crude has an API of 50 degrees, and Valero's refineries are accustomed to processing heavier crude from South America. As Valero's Eagle Ford production rates remain strong, the need for its refineries to process the light sweet domestic crude is the push behind both of these initiatives.

Additional production growth will likely lead to even more favorable pricing for domestic crude oil.

“The new units at these refineries will allow the plants to purchase less intermediate feedstocks from outside suppliers.”

— Valero Spokesman, Bill Day

Both refinery units are in the planning phase, so no construction has taken place, but the company intends for both units to be completed by the end of 2015.

Other Valero Downstream Projects in Texas

[ic-l]At the Valero's Three Rivers refinery, which sits atop the Eagle Ford shale, the company built a new pre-flash tower and added logistics in 2011-12 to process more light Eagle Ford crude.

Valero also plan expansions at the McKee Refinery in the Texas Panhandle. The project calls for spending $60 million to increase the crude unit from 170,000 bpd to 185,000 bpd, in order to process more Permian Basin crude.

Murphy Oil's Eagle Ford Production Grows to 39,000 boe/d in 2013

January 30, 2014 Kirk Eggleston

In 2013, Murphy Oil originally planned Eagle Ford production of ~30,000 boe/d, but the company blew through that goal and produced an average of 39,000 boe/d for the year.

Also read:Murphy Oil's Eagle Ford Production Hits Milestone

Murphy's fourth quarter total oil production rose from 132,918 b/d in 2012 to 139,660 b/d in 2013 or an increase of 5%. The Eagle Ford was the primary contributor to oil production growth.

The company's average oil production was 135,078 b/d in 2013, an increase of ~20% compared to the 2012 level of 112,591 b/d.

“In 2013, we continued to grow production led by our onshore Eagle Ford Shale operation, where total production averaged 39,000 net barrels of oil equivalent per day for the year.”

— Murphy's President, Roger Jenkins

With oil production growth of 20%, it's easy to see the significant impact oil plays like the Eagle Ford.

Murphy Oil at a Glance in 2013

Significant Production Growth in Eagle Ford in 2013
39,000 net boe/d in Eagle Ford in 2013
~5% Q4 oil production increase to 139,660 b/d
~20% total year oil production increase to 135,078 b/d

Murphy Oil's Eagle Ford Production in 2013

Murphy has outperformed in the Eagle Ford. At the beginning of 2013, the company had a target of 30,000 boe/d in the formation.

The company's Eagle Ford production in 2013 well surpassed its goal, hitting 39,000 boe/d. That's 30% higher than the company planned.

Murphy now expects to surpass 60,000 boe/d at some point in 2015.