Eagle Ford Sweet Spots Shown in EIA Well Video

February 14, 2014 Kirk Eggleston

The EIA (U.S. Energy Information Administration) issued findings in February 2014 showing most wells drilled in the Eagle Ford have increasingly targeted oil-rich areas since production began in 2009. The larger bubbles represent higher initial production rates.

Also read: Pioneer Hits Record Q4 Production in the Eagle Ford

Low GOR Wells - "Sweet Spots" in the Eagle Ford

*There is no sound associated with the animation

The animation in the video above shows the

GOR*

(gas to oil ratio) of wells drilled in the Eagle Ford since 2009. Sweet spots for oil production are represented by the green bubbles, and appear along the northern portion of the play.

Oil companies in the Eagle Ford are keenly aware of this data. For instance, Pioneer Resources announced in February 2014, plans to drill 45 wells in the upper (northern) portions of the Eagle Ford Shale.

Economics of Drilling Lower GOR Wells

Certainly, the fact that more wells are being drilling for oil in the Eagle Ford shouldn't come as much of a surprise. With the current price of oil hovering around ~$100 bbl and the stagnant price of natural gas over the past several years, the pattern simply reflects the free market.

Depth of Reservoir Has An Impact on Production Yield

The distribution of initial GORs from Eagle Ford wells generally corresponds to the depth of the reservoir. Deeper wells (up to 15,000 feet) to the southeast have higher initial GORs, or a relatively greater share of natural gas, while the shallower wells to the northwest (below 6,000 feet) have lower initial GORs, or a relatively greater share of oil.

GOR: Gas to Oil Ratio (GOR) is a term used to describe the ratio of volumetric flow of produced gas to the volumetric flow of crude oil for crude oil and gas mixture sample. If a hydrocarbon producing well produces a high GOR mixture, it is identified as a gas well. If GOR is low, it is identified as an oil well.

Pioneer Hits Record Q4 Eagle Ford Production - 40,000 boe/d

February 13, 2014 Kirk Eggleston

Pioneer set a record for its fourth-quarter 2013 production in the Eagle Ford Shale, averaging 40,000 boe/d. That's up ~14% from 35,000 boe/d in the fourth-quarter of 2012.

Forty-one wells were placed on production during the quarter in the Eagle Ford. Full-year 2013 production averaged 38,000 boe/d. That's an increase of ~35% compared to average production of 28,000 boe/d in 2012.

In the fourth-quarter, the Eagle Ford contributed to Pioneer's net recoverable resource potential, which increased from more than 8 billion boe to more than 10 billion boe.

Pioneer's Eagle Ford Outlook in 2014

Pioneer plans to spend $545 million in the Eagle Ford in 2014. The breakdown includes $480 million for it's horizontal drilling program and $65 million for infrastructure and land acquisitions.

The company plans on drilling 110 wells in the Eagle Ford Shale. Most of these wells will be drilled utilizing three-well and four-well pads. Full-year 2014 production is forecasted to range from 45,000 boe/d to 49,000 boe/d, an estimated increase of 18% - 29% compared to full-year 2013.

Of the 110 Eagle Ford wells planned, 45 will be targeting the Upper Eagle Ford as part of the downspacing program in the play. Pioneer's first test well in the Upper Eagle Ford continues to perform in-line with offset Lower Eagle Ford wells.

“Our main objective is to translate the resource growth we delivered in 2013 to strong production growth. To accomplish this, we are increasing our horizontal rig count in the northern Spraberry/Wolfcamp from five rigs at the end of 2013 to 16 rigs by the end of the first quarter. We will also continue an active drilling program in the southern Wolfcamp joint venture area and the Eagle Ford Shale. As a result, we expect a 14% to 19% increase in production in 2014 compared to 2013.”

— Scott Sheffield, CEO

For the first quarter, Pioneer expects to place approximately 26 horizontal wells on production in the Eagle Ford, predominately in the second half of the quarter. Production from these wells is anticipated in the second quarter.

Pioneer's Eagle Ford Highlights

Q4 2013 record production - Up 14% quarter to quarter to 40,000 b0e/d
2013 average production of 38,000 boe/d
$545 million capital budget slated for Eagle Ford in 2014
2014 production forecasted between 45,000 boe/d - 49,000 boe/d
110 wells to be drilled with 45 wells slated for the Upper Eagle Ford
Eagle Ford contributed to Pioneer's net recoverable resource potential - 8 billion boe to 10 billion boe

2nd Annual Eagle Ford Shale Expo & Conference in Corpus Christi in April - Press Release

February 12, 2014 Kirk Eggleston

(Corpus Christi, TX)Texas Eagle Ford Shale Magazine officials are extremely excited to announce expo details and put a call-out for exhibitors, supporters and speakers to participate in the upcoming 2nd Annual Texas Eagle Ford Shale Exposition and Service Company Conference.

Event Details at a Glance

April 28 - 30, 2014
American Bank Center - Corpus Christi, TX
2,000+ ATTENDEES
250 EXHIBITORS
100 SPEAKERS
CONCURRENT SESSIONS WITH 5 PLATFORMS
OPEN-CALL FOR EXHIBITORS, PARTICIPANTS & SPEAKERS

More About the Event

The three-day event will take place April 28–30, 2014, at the American Bank Center, in Corpus Christi, Texas. The event will bring together service companies, leading operators and industry experts from across the nation to present their findings, new technology and share insights related to the Eagle Ford Shale play.

With the theme “Trail of the Shale - Forging Pathways to a New Energy Marketplace,” organizers of this prestigious event anticipate hosting more than 2,000+ attendees, 250 exhibitors and 100 speakers. The event's Presenting Sponsor is Louisiana-based JC Fodale Energy Services, LLC, a nationwide oilfield services provider; Applus RTD, Pipe Gator and Stratton Oilfield Systems are Diamond Level Sponsors.

“The Expo promotes business to business success. Our goal is to bond relationships between businesses and those seeking growth, jobs, cutting-edge technology, education and prosperity in the oil and gas industry by making connections in one single location. We’re glad we can provide a platform to share products, practices and exciting innovations.”

— Sandra Castillo, Publisher of Texas Eagle Ford Shale Magazine and event coordinator.

Expert speakers will make presentations within 5 informative tracks:

Innovative & Emerging Technology
LNG Energy Sustainability
Equipment & Operational Services
Water Applications & Processes
HSE Training & Compliance

Castillo points out exhibitors will be able to interact with an extraordinary number of clients, vendors and attendees with interests in the Eagle Ford Shale oil and gas community; enjoy networking opportunities with decision-makers looking for operational products and services; and capture immediate feedback. Exhibitors will also be able to stay on top of industry trends, acquire leads, close sales, and draw new customers.

“We invite businesses to promote, launch, demonstrate and sell their services and products directly to hundreds of leaders”

— Castillo

History

With its first edition hitting the streets in May 2013, Texas Eagle Ford Shale Magazine is the very first and only publication in the South Texas shale region dedicated entirely to promoting business and industry directly to the Eagle Ford Shale community and global interests. The magazine illuminates the history, economic growth, financial advancement and sustainable energy future that the Eagle Ford Shale play offers to the great State of Texas and borders beyond. The publication's unique and well-rounded approach to stimulate minds and conversations through informative and entertaining content and creative design was even given a nod by Forbes (September 26, 2013).

For more information contact:

Jaime Powell Phone: 361.438.0113

Email: [email protected]

Anadarko Eagle Ford Production Sets New Record in Q4 2013

February 12, 2014 Kirk Eggleston

Anadarko Eagle Ford production had a record setting fourth-quarter in 2013, with a net sales volume of 53,000 boe/d. That's up from the company's third-quarter 2013 results by ~6% and up 36% from fourth-quarter 2012 net sales of ~39,000 boe/d.

Anadarko has become accustom to setting company records in the prolific Eagle Ford. In the third-quarter of 2013, Anadarko hit 50,000 boe/d, which set a new record. Fourth-quarter 2013 results simply established a new high water mark for the company in the play.

Anadarko Eagle Ford Drilling Becoming More Efficient

In the Eagle Ford, Anadarko reduced spud-to-rig-release times to 8.5 days in 2013 as opposed to 10.5 days in 2012. During the fourth-quarter of 2013, the company spud 88 wells, and added an additional rig for an average of 10 rigs in the Eagle Ford.

Since drilling began in the play, Anadarko has drilled more than 1,000 Eagle Ford wells and recently achieved gross production of 165,000 boe/d.

Eagle Ford Contribution to Total Anadarko Production in Fourth-Quarter 2013

[ic-l]In the fourth quarter of 2013, Anadarko's Eagle Ford production 36,000 b/d of liquids production. As previously mentioned, the company had 53,000 boe/d in net production during the fourth quarter.

Additional compression was also added to company's Eagle Ford gathering system in the fourth-quarter to achieve 52 mmcf/d of throughput capacity.

During the fourth-quarter, Anadarko had total onshore sales volumes of 609,000 boe/d. Of that, the Eagle Ford made up 8.7 % of total production.

Anadarko at a Glance in 2013

Q4 2014 Eagle Ford production at 53,000 boe/d
36,000 b/d of liquids brought to sales in Eagle Ford in Q4
~6% increase in production from Q3 2013
36% increase in production from Q4 2012
Q4 Eagle Ford production makes up ~9% of company-wide production during the quarter

Eagle Ford Quakes Linked to Disposal and Injection Wells

February 11, 2014 Kirk Eggleston

Since the drilling boom began in the Eagle Ford Shale, scientists have recorded a steady up-tick in earthquakes in South Texas. In a KENS-TV report, Seismologist, Cliff Frohlich, explains that there could be a link between South Texas quakes and disposal and injection wells.

Also read: Is Eagle Ford Production Causing Earthquakes?

Video Highlights

South Texas residents concerned about earthquakes and connection to oil production
Difficult to determine distinction between man-made and naturally occurring earthquakes
Increase in earthquake activity since drilling boom began in Eagle Ford
Earthquakes could be linked to disposal and injection wells

“Given that there’s tens of thousands of oil and gas wells in Texas and tens of thousands of injection wells, if [hydraulic fracking or disposing of fracking fluids] was hugely dangerous, then Texas would be famous because it was rocking with bad earthquakes all the time, but it’s not.”

— Cliff Frohlich, Seismologist with The University of Texas