Eagle Ford Shale Rig Count Decreases by Seven to 265

November 17, 2014 Kirk Eggleston

The Eagle Ford Shale rig count decreased by seven to 265 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, Woodlands, TX-based Anadarko Corp. entered into a joint venture (JV) with private equity firm KKR & Co. to develop a portion of Anadarko’s East Texas/Eaglebine acreage.

Under the terms of the deal, KKR agreed to carry $442-million of Anadarko’s future capital expenditures in Brazos, Burleson, and Robertson Counties, situated northwest of Houston, TX.

The U.S. rig count increased by three to 1,928 rigs running by the end of last week. A total of 350 rigs were targeting natural gas (six less than the previous week) and 1,578 were targeting oil in the U.S. (10 more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.). 902 or ~48% of rigs active in the U.S. were 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 (208 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

The natural gas rig count decreased by three to 17 rigs running by the end of last week. Average rig counts for natural gas production in 2012 were around 80 and then dropped to around 40 in 2013. Natural gas prices dropped by $.40 from the previous week to $4.06/mmbtu on Friday afternoon.

The oil rig count decreased by four to 248 rigs running by the end of last week. WTI oil prices decreased by ~$3 from the previous week, trading at $75.97/bbl on Friday afternoon. Eagle Ford light crude traded at $72.75/bbl on Nov. 14th.

A total of 248 rigs are drilling horizontal wells, 9 rigs are drilling directional wells, and 8 rigs are drilling vertical wells. Karnes, La Salle, Dimmit, and DeWitt each have at minimum 26 rigs running. Dimmit County has the highest rig count this week at 37. See the full list below in the Eagle Ford Shale 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.

Eagle Ford Shale Drilling by County

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.

Anadarko Enters Eaglebine Joint Venture with KKR & Co - $442 Million

November 14, 2014 Kirk Eggleston

During the third-quarter of 2014, Woodlands, TX-based Anadarko Corp. entered into a joint venture (JV) with private equity firm KKR & Co. to develop a portion of Anadarko's East Texas/Eaglebine acreage.

Under the terms of the deal, KKR agreed to carry $442-million of Anadarko's future capital expenditures in Brazos, Burleson, and Robertson Counties, situated northwest of Houston, TX. In exchange, KKR received 36,000 net acres in the JV area of mutual interest (AMI) and 40% of Anadarko's working interest (WI) in 33 wells. In a prepared release, KKR company officials said through long-term development of the field, they expect to participate in more than 500 wells.

“We see the Eaglebine as a really exciting and potentially explosive area, Anadarko CEO Al Walker said on an investor conference call in late October of 2014.”

Anadarko will remain the operator of the acreage with an average post-transaction WI of approximately 51% in the JV AMI. Anadarko company officials say the transaction will enable the company to more rapidly develop this short-cycle oil opportunity with the addition of incremental drilling rigs, while further enhancing Anadarko’s capital efficiency and flexibility.

During the third-quarter, Anadarko spud five wells with one rig in the Eaglebine. Production from these new wells increased the company's net sales volumes to more than 3,000 boe/d, with a 90% oil cut, according to Anadarko's third-quarter operations update.

Shale EnviroSafe Summit in San Antonio, TX - Dec. 2, 2014 - Press Release

November 14, 2014 Kirk Eggleston

The Shale EnviroSafe Summit will take place December 2nd at the Henry B. Gonzalez Convention Center in San Antonio, Texas. The Summit is a one-day event focused on environmental, health, safety and regulatory considerations for shale plays across the U.S. The event was designed to bring together like-minded EH&S professionals to network and discuss important industry issues in one concentrated, fast-moving day. The Shale EnviroSafe Summit will host six educational sessions, along with an introductory breakfast and a closing networking reception. Sessions include community interaction and engagement; transportation issues; safety in rural and residential areas; specialized emergency response; case studies; and managing short service employees. Each of the six sessions will feature experts from companies such as Shell, ConocoPhillips, Union Pacific Railroad, Marathon Oil, Hilcorp Energy, and more.

To register or view the latest updates on Shale EnviroSafe, visit www.shaleenvirosafe.com.

For information on attendance or sponsoring opportunities, please contact Marketing Manager Carey Buchholtz at 713.343.1878 [email protected]

Eagle Ford Rig Worker Injured in Explosion Dies

November 12, 2014 Kirk Eggleston

According to KSAT-TV, an oilfield worker badly injured in an Eagle Ford rig explosion near Tilden, TX, on October 24th, has died. KSAT-TV reported the man, identified as 50-year-old Roel Rodriguez, passed away on Saturday at San Antonio Military Medical Center. Rodriguez was one of five workers injured in the explosion. At this time, the condition of the other workers is unknown.

Pioneer Natural Resources was named as the owner of the rig involved in the explosion. According to the company, the fire ignited as the workers were conducting a procedure on the rig.

Are Eagle Ford Workers Safe?

Unfortunately, oilfield injuries and fatalities have been on the rise in Texas since 2007.

Read more: Are Eagle Ford Workers Safe?

In late February of 2014, the Houston Chronicle reported 65 oil and gas workers were killed on the job in 2012 alone in Texas, and at least 18,000 workers suffered amputations, were crushed, burned, broke bones, got cut, or reported other work-related illnesses or injuries between 2008-13.

The sad fact is there is an irrefutable correlation between the oil & gas renaissance in Texas and injuries and fatalities among oilfield workers. In 2008, Texas produced ~1.1-million b/d crude oil, but by 2013, that figure had skyrocketed to ~2.5-million b/d, according to the Energy Information Administration.

Braun Intertec Expands Operations to Texas - Press Release

November 11, 2014 Kirk Eggleston

Braun Intertec, one of the Upper Midwest’s premier engineering, consulting and testing firms, expands its operations to San Antonio, Texas, to support the oil and gas industry in the Eagle Ford Shale area and the surrounding infrastructure. The office will offer nondestructive examination, geotechnical engineering, environmental consulting, construction materials testing, and building sciences services. Braun Intertec anticipates the new office location in San Antonio will allow its experienced engineers, scientists and field personnel to deliver the level of service and technical expertise needed in the booming oil and gas industry in Texas. The Eagle Ford Shale area is one of the most active shale plays in the world and continues to profoundly impact the community and economic development of South Texas.

With the company’s more than 30 years of experience in the oil and gas industry combined with the Texas-based, local leadership at the San Antonio office, Braun Intertec is prepared to serve the thriving industry in Texas.

“As a native Texan, I’m excited to join the Braun Intertec team. I am more than confident the unique and varied skill set offered by Braun Intertec paired with the local expertise of our San Antonio business unit leaders will be able to keep pace with the immediate and growing needs of the Eagle Ford Shale community as well as the corresponding expansions in the industrial, municipal and private sectors.”

— Gary Kelley, Business Unit Manager at the Braun Intertec San Antonio Office

For more information about Braun Intertec, visit www.braunintertec.com or chat with us on Twitter @Braunintertec.

About Braun Intertec

Based in Minneapolis, employee-owned Braun Intertec (www.braunintertec.com) is a premier engineering, environmental consulting and testing firm with more than 600 employees located in multiple Twin Cities offices, as well as in Duluth, Hibbing, Mankato, Rochester, and St. Cloud, Minnesota. Braun Intertec also has offices in Bismarck, Dickinson, West Fargo, and Minot, North Dakota; La Crosse and Milwaukee, Wisconsin; Cedar Rapids, Iowa; and San Antonio, Texas. Braun Intertec subsidiaries include Agile Frameworks, LLC, Braun Intertec Geothermal, LLC, both based in Minneapolis.

Contact:

Tiffany DeMuth

[email protected]

952-995-2079