Eagle Ford Shale - Price Cost Per Acre - Mineral Rights Leases

By Tim - http://oilshalegas.com

November 7, 2011 - Whiting Petroleum (WLL) recently announced some good Eagle Ford Shale mineral rights leasing data. They sold 3,532 Eagle Ford Shale acres in Karnes County, Live Oak County, and DeWitt County Texas for a total of $66.4 Million.

Prospective Eagle Ford Acreage Sold for $66.4 Million, $12,542 per Net Acre

"During the third quarter, Whiting sold approximately 3,532 net leasehold acres prospective for oil and gas production from the Eagle Ford formation in Karnes, Live Oak and Dewitt Counties, Texas for a total cash consideration of $66.4 million before closing adjustments. The transaction, which was effective July 1, 2011, closed on September 29, 2011. Whiting used the net proceeds from the property sale to reduce the amount drawn under its Credit Agreement.

The non-core acreage sold is located in Kawitt, Nordheim and Three Rivers Fields, which produce from the Speary, Edwards, Wilcox and Eagle Ford formations. Recent net daily production was approximately 4.0 MMcfe from 33 producing wells. The property sale also included 16 shut-in and temporarily abandoned wells. The estimated proved net reserves associated with the producing properties were 1.1 MMBOE. Whiting valued the existing production in the transaction at $22.1 million net of plugging liabilities and the acreage at $44.3 million net of the production value, or approximately $12,542 per net acre."

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DeWitt County, Texas: Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Petrohawk Energy Corp. (HK) confirmed its strong belief in the growth potential in their Eagle Ford Shale projects in DeWitt County, TX. In their 2010 2Q earnings call, Floyd Wilson, Chairman and CEO of Petrohawk Energy, stated:

"We expect to see a meaningful oil production component grow, fueled from new areas of our portfolio. Our growing Black Hawk area in the Eagle Ford Shale and our Red Hawk project, also in Eagle Ford Shale, should provide for this growth. This could bring the oil component of production to approximately 5% by year end and possibly much higher in future years. We will look for these higher-margin oil areas to meaningfully support cash flow growth and organic reserve growth."

Petrohawk Energy will have 90-some miles of gas and condensate gathering the line in the ground in the Black Hawk area by year end. In Hawkesville, the company has been putting pipes in the ground there for over a year now, and they are on track with their wells program.

Petrohawk Energy currently operates an approximate 20 wells in the Eagle Ford shale.

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Petrohawk Energy (HK): Eagle Ford Shale

By Andrea: http://oilshalegas.com

Petrohawk Energy (HK) announced that they foresee a positive future in their Eagle Ford Shale sector in their 2010 Earnings call:

"Also, we expect to see a meaningful oil production component grow, fueled from new areas of our portfolio. Our growing Black Hawk area in the Eagle Ford Shale and our Red Hawk project, also in Eagle Ford Shale, should provide for this growth. This could bring the oil component of production to approximately 5% by year end and possibly much higher in future years. We will look for these higher-margin oil areas to meaningfully support cash flow growth and organic reserve growth."

The growing company experienced their highest level of operating activity in the Eagle Ford Shale to date. Last quarter, they operated an average of 7.5 rigs and drilled 19 wells, 11 in Hawkville, seven in Black Hawk and one in Red Hawk.

Petroawk Energy (HK) announced their first Eagle Ford Shale play in late 2008. It was founded at a depth of approximately 11,000-12,000 feet. The counties where they currently operate Eagle Ford Shale include LaSalle County, TX, McMullen County, TX and DeWitt County, TX. Prospective counties include Redhawk and Zavala County, TX.

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