Eagle Ford Rig Count Down by 10 to 201

February 9, 2015 Elizabeth Alford

Matador Pulling Two Rigs in the Eagle Ford in 2015 — Eagle ford rig counts

The Eagle Ford Shale rig count decreased by 10 to 201 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, troubled Lucas Energy sets its eyes on a merger. Just days after revealing it had defaulted on a massive $7.7 million dollar debt, the company executed a letter of intent for a proposed business combination with Victory Energy Corporation. This is the preliminary step to an official merger agreement that allows the companies to negotiate exclusively. Part of the agreement will be to provide for the capital necessary for Lucas to satisfy its obligations for its Eagle Ford wells, accounts payable and necessary working capital.

The U.S. rig count fell another 87 to 1456 rigs running by the end of last week. A total of 314 rigs were targeting natural gas (down 2 from the previous week) and 1,317 1140 were targeting oil in the U.S. (177 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.).654 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties (181 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

Natural gas increased by one to 19 rigs running by the end of last week. Natural gas prices decreased by $.11 from the previous week at $2.58/mmbtu on Friday afternoon.

The oil rig count decreased by 10 to 21 rigs running by the end of last week. WTI oil prices increased by $3.45 from the previous week, trading at $51.69/bbl on Friday afternoon. A total of 189 rigs are drilling horizontal wells, three rigs are drilling directional wells, and nine rigs are drilling vertical wells. Karnes (31), Dimmit (26), and DeWitt (23) have the highest rig counts this week. See the full list below in the Eagle Ford Shale Drilling by County below

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.

Lucas Energy to Join with Victory

February 4, 2015 Elizabeth Alford

Analysts have predicted that when the dust settles from plummeting crude prices, the real victims will be small energy companies. Big corporations have been slashing budgets to help them weather the storm, but smaller companies often don’t have the resources to carry them long term and it is beginning to show.

One such company is Lucas Energy, an Eagle Ford shale oil and gas exploration and production company located in Houston that maintains interests in over 10,000 acres in South and East Texas. Lucas has been scrambling to stay on top of its obligations and recently slashed its expenses by approximately $160,000 per month. But these efforts have not been enough to keep the company out of trouble. Last week, Lucas confirmed that they defaulted on a $7.7 million debt.

“The plunge in crude oil prices has required us to reconsider all alternatives. We are actively and aggressively pursuing options to secure funding through a corporate combination or project financing arrangement. We believe we have made significant progress toward establishing a definitive path forward. Management remains confident that a suitable solution will be agreed upon in the coming weeks and resulting public announcement at the appropriate time.”

— CEO, Anthony Schnur

A ‘suitable solution’ surfaced yesterday as the company announced it had executed a letter of intent for a proposed business combination with Victory Energy Corporation. This is the preliminary step to an official merger agreement that allows the companies to negotiate exclusively. Part of the agreement will be to provide for the capital necessary for Lucas to satisfy its obligations for its Eagle Ford wells, accounts payable and necessary working capital.

Another Fatal Crash in the Eagle Ford

February 3, 2015 Elizabeth Alford

On January 15, another fiery crash took the lives of five oil field workers in Dimmet county. This latest tragedy, involving a crude oil tanker truck, highlights the serious roadway issues that have plagued the Eagle Ford and Permian Basin over the past couple of years.

Poor road conditions, increased traffic and heavy equipment brought on by the oil boom contribute to the unsafe conditions. Roads in the Eagle Ford Shale are under intense pressure from the huge volumes of truck traffic that are regularly running up and down South Texas highways – literally hundreds of trips per day in many cases. And, often, the counties have not been able to keep up with the problems caused by the increased volume.

Related: Heavy Load Trip Planning Tips

“In the Eagle Ford Shale energy sector, a 26-county region that stretches from Laredo to Madisonville, TxDOT crash reports indicate there were 3,450 traffic crashes that resulted in serious injuries or fatalities in 2013, an increase of 7 percent over the previous year. The result was 238 traffic fatalities in the region in 2013.”

— TxDot

Over the summer, TxDOT launched a public education campaign designed specifically for motorists who frequent roadways heavily used by energy workers. The ‘Be Safe. Drive Smart.’ campaign promotes roadway safety and is being heavily marketed on radio, TV and billboards across the Eagle Ford and Permian Basin. This initiative is in response to the increased in traffic problems, crashes and fatalities in the area since the oil boom began.

Be Safe. Drive Smart. is the latest TxDot campaign to bring roadway improvement to the Eagle Ford. Since 2013, the agency spent almost $8 million for road repairs in Dimmit and Maverick Counties. They have also built new passing lanes to increase safety, bringing the number to five on US 277 from Eagle Pass to Carizzo Springs and another nine lanes on US- 83 from I-35 to Carizzo Springs.

Eagle Ford Rig Count Down by 21

February 2, 2015 Elizabeth Alford

The Eagle Ford Shale rig count decreased by 21 to 211 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, the U.S. Energy Information Administration (EIA) has released new maps that include updated information for Eagle Ford derived from producing wells from January 2000- June 2014. These maps are categorized based on Gas-to-oil ratio, elevation contours, footprint and thickness contours.

Eagle Ford Oil & Gas Rigs

The natural gas rigs increased by four to 18 rigs running by the end of last week. Natural gas prices decreased by $.20 from the previous week at $2.69/mmbtu on Friday afternoon.

The oil rig count decreased by 21 to 211 rigs running by the end of last week. WTI oil prices increased by $3.10 from the previous week, trading at $48.24/bbl on Friday afternoon. A total of 200 rigs are drilling horizontal wells, three rigs are drilling directional wells, and eight rigs are drilling vertical wells. Karnes (33), Dimmit (28), and DeWitt (25) have the highest rig counts this week. See the full list below in the Eagle Ford Shale Drilling by County below

Eagle Ford Shale Drilling by County

What is the Rig Count?

Read full report at bakerhughes.com

EIA Updates Eagle Ford Maps

January 29, 2015 Elizabeth Alford

The U.S. Energy Information Administration (EIA) has released new maps that include updated information for Eagle Ford derived from producing wells from January 2000- June 2014 based on The maps are categorized in the following geological parameters.

Initial GOR

This map shows the detailed production in relation to the natural gas to oil ratio (GOR) of the play.

Oil to gas ration map for Eagle Ford 2015

Play Footprint

This map shows the four boundaries of the Eagle Ford Play

North - This boundary is determined by the temperatures at which oil is generated from rock and stops at 3650 feet in Frio County and counties east, and in Maverick and Zavala counties from 650 to 2900 feet.
South - This boundary follows the Sligo Reef Margin.
Northeast - This boundary where the lower Eagle Ford thins and grades into more silica-rich units of the Pepper Shale of the East Texas Basin
West - This boundary is marked by the border with Mexico

Elevation Contours

This structure map characterizes the depth of the play and represents the minimum drilling depth to reach the top of the Eagle Ford formation.

“The Eagle Ford formation is divided into upper and lower units, and the top of the lower unit is considered the best proxy for the source rock; however, due to a lack of density and distribution of the depth to the top of the lower Eagle Ford formation, this map represents an approximation of the elevation of the top of the upper Eagle Ford unit.”

Thickness Contours

This map provide a rough estimate of the thickness of the play, which is used to estimate resource volumes, such as oil- or gas-in-place estimates, in combination with other information such as porosity, pressure, and geologic history.

Read here for more about Eagle Ford Shale Geology

Purchase EFS maps here

Read full report at eia.gov