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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Karnes County, Texas: Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Comstock Resources Inc. (CRK) has initiated development of its Eagle Ford shale acreage in Atascosa, Karnes and McMullen counties in South Texas. Comstock has drilled the Rancho Tres Hijos #1H in McMullen county to a vertical depth of 11,020 feet with a 4,091 lateral and has drilled the NWR #1H in Atascosa county to a vertical depth of 8,715 feet with a 5,209 foot lateral. These wells are scheduled for completion in November. Comstock is currently drilling its third Eagle Ford shale well in Karnes county.

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Karnes County, TX: Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Plains Exploration and Production Company (PXP) recently released an operational update announcing that they will expand their position in the Eagle Ford Shale located in Karnes County, TX:

PXP has agreed to acquire interests in approximately 60,000 net acres in the Eagle Ford oil and gas condensate windows in South Texas for $578 million in cash. Of the 60,000 net acres, approximately 20,400 net acres are located in a joint operating area between PXP and EOG Resources, Inc. (NYSE: EOG). The Eagle Ford properties are located primarily in Karnes County of South Texas and have net resource potential of approximately 140 to 175 million BOE, projected net production capability of approximately 2,000 BOE per day and a year-end 2011 production target exit rate of approximately 5,000 BOE per day net to PXP.
James C. Flores, Chairman, President and CEO of PXP commented, "We are pleased to announce this significant acquisition which enables us to aggressively expand our large, high-margin onshore oil business. The Eagle Ford transaction adds a high-quality oil asset with substantial reserve and oil production growth opportunities to PXP's existing domestic oil resource position. As part of our focused oil growth strategy, PXP will operate substantially all of its oil assets, maintain total company liquids volumes between 50% and 60% of total production, and continue to deploy a hedge strategy to protect our cash flows."
The Eagle Ford oil shale acquisition is expected to close during the fourth-quarter 2010, subject to customary closing conditions and adjustments, with an effective date of September 1, 2010. J.P. Morgan provided financial advisory services related to the acquisition. As previously announced, the data room process for the planned Gulf of Mexico deepwater divestment is underway with final bids expected in late-October to mid-November. PXP expects the divestment to close by year-end 2010. Barclays Capital and Jefferies & Company are assisting PXP in the Gulf of Mexico deepwater divestment.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Karnes County, TX: Eagle Ford Shale

By Andrea: http://oilshalegas.com

Comstock Resources Inc. (CRK) gave an update on the Eagle Ford Shale recently. They are increasing their acreage in the Eagle Ford Shale in Karnes County, McMullen County and Atascosa County, Texas.

Comstock Resources Inc. (CRK) has acquired or is in the process of closing on 18,000 net acres that they feel are prospective for development in the emerging Eagle Ford Shale play in Karnes, McMullen, and Atascosa counties in South Texas. They are focusing primarily on the oil and condensate windows in this play due to the better economics of oil versus natural gas. They hope to acquire additional 10,000 net acres in our focus area. Given expected well spacing of 80,000 acres and an expected per well recovery of 400,000 barrels of oil per well, Comstock's acreage could have 67 million barrels of oil equivalent of reserve potential. They plan to move one of their Haynesville rigs to the South East Texas region and expect to drill three Eagle Ford Shale wells on the acreage by the end of this year.

In 2011 after they have completed their leasing activities, they plan to have a two to three rig program to develop their Eagle Ford Shale acreage.

For more shale updates, visit: http://blackberrystocks.blogspot.com

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Atascosa County, Texas: Eagle Ford Shale Update

By Andrea: http://oilshalegas.com

Comstock Resources Inc. (CRK) gave an update on the Eagle Ford Shale recently. They are increasing their acreage in the Eagle Ford Shale in Karnes County, McMullen County and Atascosa County, Texas.

Comstock Resources Inc. (CRK) has acquired or is in the process of closing on 18,000 net acres that they feel are prospective for development in the emerging Eagle Ford Shale play in Karnes, McMullen, and Atascosa counties in South Texas. They are focusing primarily on the oil and condensate windows in this play due to the better economics of oil versus natural gas. They hope to acquire additional 10,000 net acres in our focus area. Given expected well spacing of 80,000 acres and an expected per well recovery of 400,000 barrels of oil per well, Comstock's acreage could have 67 million barrels of oil equivalent of reserve potential. They plan to move one of their Haynesville rigs to the South East Texas region and expect to drill three Eagle Ford Shale wells on the acreage by the end of this year.

In 2011 after they have completed their leasing activities, they plan to have a two to three rig program to develop their Eagle Ford Shale acreage.

For more shale updates, visit: http://blackberrystocks.blogspot.com

For more stock updates, visit: http://daytradingstockblog.blogspot.com

McMullen County, Texas: Eagle Ford Shale update

By Andrea: http://oilshalegas.com

Comstock Resources Inc. (CRK) gave an update on the Eagle Ford Shale recently. They are increasing their acreage in the Eagle Ford Shale in Karnes County, McMullen County and Atascosa County, Texas.

Comstock Resources Inc. (CRK) has acquired or is in the process of closing on 18,000 net acres that they feel are prospective for development in the emerging Eagle Ford Shale play in Karnes, McMullen, and Atascosa counties in South Texas. They are focusing primarily on the oil and condensate windows in this play due to the better economics of oil versus natural gas. They hope to acquire additional 10,000 net acres in our focus area. Given expected well spacing of 80,000 acres and an expected per well recovery of 400,000 barrels of oil per well, Comstock's acreage could have 67 million barrels of oil equivalent of reserve potential. They plan to move one of their Haynesville rigs to the South East Texas region and expect to drill three Eagle Ford Shale wells on the acreage by the end of this year.

In 2011 after they have completed their leasing activities, they plan to have a two to three rig program to develop their Eagle Ford Shale acreage.

For more shale updates, visit: http://blackberrystocks.blogspot.com

For more stock updates, visit: http://daytradingstockblog.blogspot.com

Karnes County, TX: Eagle Ford Shale

By Andrea: http://oilshalegas.com

PXD Pioneer Natural Resources Company (NYSE:PXD) continues to expand its oil capabilities with yet another successful well in the Eagle Ford Shale in Karnes County, TX:

PXD Pioneer Natural Resources Company (NYSE:PXD) announced its fifth successful well in the Eagle Ford Shale in South Texas. The Chesnutt Gas Unit #1 well, which is located in Karnes County, Texas, tested at an initial production rate of 15.6 million cubic feet of gas equivalent per day (including 14.1 million cubic feet of gas per day and 255 barrels of condensate per day) on a 24/64 inch choke with approximately 5,600 pounds per square inch wellhead flowing pressure. The liquids-rich gas contains 1,200 British thermal units per cubic foot. The well was drilled to a vertical depth of approximately 13,300 feet and completed in a 4,100-foot lateral section with a 12-stage fracture stimulation. Production from the well is expected to flow to sales beginning in the third quarter after completion of a Pioneer-operated gas treating facility where the condensate will be separated from the gas.

"We are very excited to have sucessfully drilled another highly productive well in the Eagle Ford Shale. The Chesnutt #1 provides additional confidence in the development potential of the 1,750 Eagle Ford Shale locations we have identified across our large 310,000 acre position. This well also further validates the attractive liquids yields we expect to realize in the condensate window of the play, where approximately 70% of our acreage lies. With a gross resource potential of more than 11 trillion cubic feet equivalent, we expect the Eagle Ford Shale to add significant production and reserves while enhancing shareholder value."

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