EOG Resources - ZaZa Energy Move into Third and Final Phase of Joint Venture Agreement

March 21, 2014 Kirk Eggleston

EOG Resources joint venture with ZaZa Energy moves into its third and final phase in the Eaglebine. Plans were accelerated in the latter part of 2013 to move forward with the second phase of the joint venture.

In the third phase, ZaZa will receive $15 million and an additional two-well drilling commitment from EOG. As part of the agreement, EOG must begin drilling the first of two wells by July 1, 2014. In exchange, EOG will gain a 75% working interest in all of Zaza's remaining acreage.

Under the third phase, ZaZa Resources will also receive an additional $1.1 million in cash from EOG for the completion of the Range Resources-ZaZa joint venture agreement. Range Resources has an interest in portions of the acreage.

EOG Resources - Zaza Energy Phase III Joint Venture Highlights

Zaza Energy receives $4.7 million in cash from EOG Resources
Zaza Energy receives a carry of EOG's share of future joint venture costs of up to ~$9.2 million
Zaza Energy receives $1.1 million in cash from EOG for the completion of the Range Resources-ZaZa joint venture agreement
EOG Resources will begin drilling the first of two wells by July 1, 2014 as part of a two-well drilling commitment
EOG Resources is assigned a 75% working interest in all of ZaZa's remaining acreage

ZaZa Energy and EOG Resources reached terms on the joint venture agreement early in 2013. The company's eastern Eagle Ford acreage is in Grimes, Madison, Montgomery, Trinity, and Walker counties.

Aresco LP Sells Eagle Ford Wells to Halcón Resources

March 20, 2014 Kirk Eggleston

Dallas-based Aresco-LP announced the sale of nine wells to Halcón Resources Corporation in March 2014 for an undisclosed amount.

The wells are located within Halcón's ~100,000-acre "El Halcón" core operating area in Brazos and Madison Counties.

“As our investors enjoy the opportunity to recycle capital into new projects, we wish Halcón best of luck as they continue their expansion throughout their El Halcón area of interest in East Texas.”

— Aresco CEO, Brandon Laxton

n 2014, Halcón plans on focusing much of it's activity in "El Halcón". The purchase of these wells from Aresco falls in-line with the company's opertations strategy.

“Our focus in 2014 is on drilling wells in the sweet spots of our de-risked acreage in the Williston Basin and El Halcón.”

— Halcón CEO, Floyd Wilson

Goodrich Petroleum's Eagle Ford Capital Budget Increases for 2014

March 19, 2014 Kirk Eggleston

Goodrich Petroleum Corporation plans to spend more in the Eagle Ford Shale in 2014 than previous estimates indicated. The company's total capital budget remains $375 million for the year; however, the capital budget allotted for the Eagle Ford Shale has been bumped up to $40-million. In October 2013, Goodrich's capital spending in the Eagle Ford was set closer to $30-million.

Goodrich Petroleum plans to drill 9 gross (6 net) wells in the Eagle Ford this year.

Goodrich's Eagle Ford Fourth-Quarter 2013 Operations Update

In the fourth-quarter of 2013, the company conducted drilling operations on 4 gross (3 net) wells, of which 1 gross (0.67 net) was in the Eagle Ford. A total of 7 gross (4.7 net) wells were added to production during the quarter, of which 4 gross (2.7 net) were in the Eagle Ford Shale.

At the end of 2013, Goodrich had 1 rig running in the Eagle Ford. To date, the company has 63 gross (43 net) Eagle Ford wells producting.

Goodrich's Year End Operations Snap Shot

For the year, Goodrich conducted drilling operations on 25 gross (16 net) wells and added 43 gross (24 net) wells to production across it's portfolio, which includes assets in the Tuscaloosa Marine Shale (TMS) and Haynesville Shale. The wells added to production during the year consisted of 23 gross (15 net) in theEagle Ford Shale.

At the end of 2013, the Eagle Ford represented 16% of the company's proved reserves, while the TMS and Haynesville Shales were 6% and 46% respectively. Look for Goodrich to move aggressively on it's TMS assets in 2014. The company estimates its TMS assets represent 52% of 3P resource potential across the portfolio or 4,460 bcfe (744 mmboe).

Total production was down for the year across the company's portfolio from 85,832 mcfe/d to 76,124 mcfe/d.

Vetergy Group Seeking U.S. Military Veterans for Oil & Gas Jobs - Press Release

March 18, 2014 Kirk Eggleston

“The oil and natural gas industry is projected to create another 500,000 jobs over the next seven years, and we’re going to need a trained and skilled workforce in order to continue to produce and to refine and transport the oil and natural gas we use right here in the United States.”

— Jack Gerard, API President

Energy independence and “The Great Crew Change” have created tremendous opportunities for motivated talent to access rewarding careers in Oil and Natural Gas (O&NG). Job creators will need to fill hundreds of thousands, if not, millions of jobs in the next decade.

The VETERGY GROUP identifies and aligns US Military veterans with the attitude and aptitude required to deliver exceptional performance in today’s modern petroleum industry.

VETERGY locates and screens veterans, then enhances their capabilities through an on-line education management tool powered by SkillGRID®, the industry’s leading fit-for-purpose eLearning delivery solution. Candidates receive International Association of Drilling Contractors (IADC) accredited high-impact, multimedia learning programs focused on basic oilfield technology before they are presented for interview. This process not only offers ‘ready-to-work’ candidates, but also ensures that individuals have demonstrated their motivation by completing the rigorous program.

VETERGY is veteran owned and industry seasoned. David Wilbur, the founder and President, accrued more than 4000 hours in fixed-wing tactical military aircraft during aircraft carrier and shore-based operations including combat operations in Afghanistan and Iraq. Since retiring from the Marines, David has worked in various roles with major operators, drilling contractors, service contractors and contingent labor staffing agencies from the rig floor / dog house to the leadership team. David has developed a clear understanding of the skill requirements and parallel demand for flawless human performance in the oilfield. The suitability of using the comparable skills and proven discipline of military veterans to work in the oilfield is unmistakable.

VETERGY works closely with our veteran applicants to accelerate their transition into the commercial workforce. We map a veteran’s capabilities with our clients’ needs, deeply understanding and addressing performance gaps so that staffing requirements are optimized.

VETERGY is fully committed to the mission of delivering reliable human performance to the oil & natural gas industry through a proven manpower supply channel that is globally deployable. We recognize the urgency for this demand and can scale our concept to meet the market call.

Immediate openings are available for veterans with the following skills:

Boatswains Mate
Communications & Information Technology
Diving
Electrician
Engineering – all types
Environmental
Explosives
Facilities Management
Fire Fighting
Food Services
Ground Safety
Inspection & Testing
Logistics/Supply Chain Management
Management
Maritime
Motor Transport (All types of heavy equipment)
Occupational Health
Security / Police
Ship’s Company
Training & Education
Utilities
Warehousing
Waste Management
Weather Forecasting
Welding

For more information, visit VETERGY at vetergy.com or call 844-VETERGY (838-3749)

Fracking Turns 65 - Eagle Ford Shale Drilling Boom Made Possible by the Technology

March 18, 2014 Kirk Eggleston

On Monday, The American Petroleum Institute celebrated the 65th birthday of hydraulic fracturing or fracking. The technology is widely used across the Eagle Ford Shale, and has contributed significantly to Texas's current oil boom, giving many folks connected to the oil and gas industry in the state reason to celebrate.

According to a University of Texas at San Antonio study, the development of the Eagle Ford Shale had an economic impact of $61 billion on the region in 2012. That's not a small figure, and estimates for future exploitation of the tight oil formation through fracking are only expected to go up.

At the beginning of March 2014, the Energy Information Administration (EIA) released data placing the Eagle Ford at the head of the pack for oil production in Texas per well compared to six other U.S. domestic shale plays. The EIA credits horizontal drilling and fracking for the play's strong oil production.

Industry players and those connected to the industry maintain that fracking is safe.

“At the 2014 NAPE Winter Business Conference, Former Secretary of the Interior, Ken Salazar, said, “I believe hydraulic fracking is safe… there is not a single case where fracking has caused an environmental problem for anyone.”

There is however strong opposition to fracking from some special interest groups, activists across the country and local residents living in areas impacted by the oil patch.

Since the drilling boom began in the Eagle Ford Shale, a steady up-tick in earthquakes in South Texas has been recorded. Scientists believe that could be linked to fracking and disposal and injection wells.

As the Eagle Ford continues to be developed, the practice of fracking will continue to impact the state of Texas and those connected to the industry in multiple ways - economically, politically and environmentally.

The first commercial fracking job was in Duncan, Oklahoma on March 17, 1949, according to API.