Gonzales County, TX - Eagle Ford Shale

By Tim - http://oilshalegas.com

EOG Resources (EOG) provided an oil & natural gas drilling update in the Eagle Ford Shale play located in Gonzales County, Texas.

EOG's well results in the Eagle Ford continue to lead the industry. In Gonzales County, the Henkhaus Unit #1H, #2H, #3H, #4H, #6H and #7H wells were drilled on a pattern of 65-acre spacing. The six wells were completed to sales at individual initial production rates ranging from 2,424 to 3,733 barrels of oil per day (Bopd) with 442 to 679 barrels per day (Bpd) of natural gas liquids (NGLs) and 2.2 to 3.4 million cubic feet per day (MMcfd) of natural gas per well. The Mitchell Unit #3H, #4H, #5H, #6H, #7H and #8H wells, which were also drilled as down-spaced pilots, began initial production at 2,833 to 3,527 Bopd with 275 to 485 Bpd of NGLs and 1.4 to 2.4 MMcfd of natural gas per well. The Meyer #3H, #4H, #5H, #8H and #9H wells had individual peak oil rates ranging from 1,647 to 2,813 Bopd with 199 to 413 Bpd of NGLs and 1.0 to 2.1 MMcfd of natural gas.

EOG has 100 percent working interest in these 17 Gonzales County wells. "With tremendous resource potential still remaining on our acreage, we continue to test and apply techniques that will increase the oil recovery and potential of the Eagle Ford, our crown jewel. This strategy takes us into the next inning of development. By concentrating our efforts on getting more oil out of the ground early in the development phase, we are taking a good asset and making it great," Papa said. "Looking across the industry, we believe EOG's Eagle Ford position represents the largest domestic net oil discovery in 40 years and the highest rate of return play in North America today."

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http://oilshalegas.com/eaglefordshale.html

Cabot Oil & Gas (COG) - Eagle Ford Shale

By Tim - http://oilshalegas.com

Cabot Oil & Gas (COG) provided an oil & natural gas drilling update in the Eagle Ford Shale play located in South Texas.

Cabot's Eagle Ford activity drove the 68 percent increase in the Company's oil and liquids production between full years 2011 and 2010. This growth came from 29 net wells primarily located in the Company's Buckhorn area in South Texas. Of ten recent well successes, the 24-hour peak production rate for half of the wells has exceeded 1,000 barrels of oil per day, with a 30-day average increasing to around 575 barrels of oil per day. "We have continued our science efforts here to improve realizations in the play with a degree of success including increased EURs, higher reserves per foot completed and increases to initial maximum output rates," commented Dinges. "From these results we expect our oil resource potential to rise again in 2012 as we continue to enhance the play further by exploiting our ability to down-space locations in the field."

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http://oilshalegas.com/eaglefordshale.html

EOG Resources (EOG) - Eagle Ford Shale

By Tim - http://oilshalegas.com

EOG Resources (EOG) provided an oil & natural gas drilling update in the Eagle Ford Shale play located in South Texas.

Starting 2011 with a 12-rig drilling program that ramped up to 26 rigs in December, EOG drilled and completed 244 net wells during the year with a focus on optimizing completion techniques, in addition to reducing drilling days and overall well costs. Moving into development mode early in 2011, EOG began shifting its attention to increasing recovery of the oil-in-place in the field. To test the impact of well spacing on reserve recoveries, EOG drilled eight pilot programs that included 33 total wells. Based on production analysis from these pilots and reservoir modeling, EOG is now pursuing development drilling on 65 to 90-acre spacing, significantly tighter than the original density of 130 acres between wells.

After taking into account both the excellent results from the 375 wells it has drilled to date across its 120-mile acreage position and the results from the down-spaced drilling tests, EOG has increased its estimated potential reserves in the Eagle Ford from 900 million barrels of oil equivalent (MMboe) to 1,600 MMboe, net after royalty (NAR). The 700 MMBoe, NAR, or 78 percent increase represents an estimated 6 percent recovery factor. On its 572,000 net acres in the prolific oil window, EOG has identified approximately 3,200 remaining drilling locations and increased its average per well estimate to 450 thousand barrels of oil equivalent (MBoe), NAR.

EOG's well results in the Eagle Ford continue to lead the industry. In Gonzales County, the Henkhaus Unit #1H, #2H, #3H, #4H, #6H and #7H wells were drilled on a pattern of 65-acre spacing. The six wells were completed to sales at individual initial production rates ranging from 2,424 to 3,733 barrels of oil per day (Bopd) with 442 to 679 barrels per day (Bpd) of natural gas liquids (NGLs) and 2.2 to 3.4 million cubic feet per day (MMcfd) of natural gas per well. The Mitchell Unit #3H, #4H, #5H, #6H, #7H and #8H wells, which were also drilled as down-spaced pilots, began initial production at 2,833 to 3,527 Bopd with 275 to 485 Bpd of NGLs and 1.4 to 2.4 MMcfd of natural gas per well. The Meyer #3H, #4H, #5H, #8H and #9H wells had individual peak oil rates ranging from 1,647 to 2,813 Bopd with 199 to 413 Bpd of NGLs and 1.0 to 2.1 MMcfd of natural gas.

EOG has 100 percent working interest in these 17 Gonzales County wells. "With tremendous resource potential still remaining on our acreage, we continue to test and apply techniques that will increase the oil recovery and potential of the Eagle Ford, our crown jewel. This strategy takes us into the next inning of development. By concentrating our efforts on getting more oil out of the ground early in the development phase, we are taking a good asset and making it great," Papa said. "Looking across the industry, we believe EOG's Eagle Ford position represents the largest domestic net oil discovery in 40 years and the highest rate of return play in North America today."

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/eaglefordshale.html

Anadarko Petroleum (APC) - Eagle Ford Shale 2012

By Tim - http://oilshalegas.com

Anadarko Petroleum (APC) provided an oil & natural gas drilling update in the Eagle Ford Shale play located in South Texas.

Anadarko accelerated production growth in the liquids-rich Eagleford Shale during 2011, exiting the year with gross volumes of approximately 77,000 BOE per day in the play, with a liquids yield of more than 65 percent. The growth in this highly economic field was aided by the company's entry into a $1.6 billion joint venture and major expansions in midstream infrastructure, and strategic service agreements.

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http://oilshalegas.com/eaglefordshale.html

Eagle Ford Shale - Pioneer Natural Resources (PXD)

By Tim - http://oilshalegas.com

Pioneer Natural Resources (PXD) provided an oil & natural gas drilling update in the Eagle Ford Shale play located in South Texas.

In the liquids-rich Eagle Ford Shale in South Texas, Pioneer and its joint venture partners are currently running 12 rigs. The Company drilled 111 wells in 2011 and placed 92 wells on production. To improve the execution of its drilling and completions program and reduce costs, Pioneer is operating two Company-owned fracture stimulation fleets totaling 100,000 horsepower. The Company is also utilizing a dedicated third-party fracture stimulation fleet, which commenced operating in April 2011 under a two-year contract.

Pioneer plans to continue running 12 rigs in 2012 and drill approximately 125 wells. The 2012 drilling program will continue to focus on liquids-rich drilling, with only 15% of the wells designated to hold strategic dry gas acreage. The original plan for 2012 called for an increase to 14 rigs on the assumption that 25% of the program would target dry gas drilling. However, in response to the current low gas price environment, the increase to 14 rigs has been delayed until 2013. It is now planned that the rig count will increase to 16 rigs in 2014 and 19 rigs in 2015.

Pioneer increased its Eagle Ford Shale production from 14 MBOEPD in the third quarter to 20 MBOEPD in the fourth quarter. The Company expects production to increase from an average of 12 MBOEPD in 2011 to 25 MBOEPD to 29 MBOEPD in 2012, 37 MBOEPD to 41 MBOEPD in 2013 and 47 MBOEPD to 53 MBOEPD in 2014.

Pioneer’s gross well cost in the Eagle Ford Shale ranges from $7 million to $8 million per well. Using this well cost, estimated EURs, assumed flat commodity prices of $100 per barrel for oil and $4 per MCF for gas and excluding the benefit of the joint-venture drilling carry, the before-tax internal rate of return for the 2012 drilling program is estimated to be 70%.

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http://oilshalegas.com/eaglefordshale.html

Eagle Ford Shale - Comstock Resources (CRK)

By Tim - http://oilshalegas.com

Comstock Resources (CRK) provided an oil & natural gas drilling update in the Eagle Ford Shale play located in South Texas.

In the South Texas region, the Company drilled 20 (19.2 net) horizontal Eagle Ford shale wells in 2011. Comstock completed 17 wells (17.0 net) including one well that was drilled in 2010. These wells had an average per well initial production rate of 820 barrels of oil equivalent ("BOE") per day. Four wells (3.2 net) were awaiting completion at year end. Since the last update, Comstock has completed four additional wells in its Eagle Ford shale program. The Gloria Wheeler "A" #1H was drilled to a vertical depth of 11,358 feet with a 6,725 foot lateral. This well was tested at an initial rate of 1,070 barrels of oil per day and 1.1 MMcf of natural gas per day or 1,254 BOE per day. The Gloria Wheeler "B" #1H was drilled to a vertical depth of 10,908 feet with a 5,175 foot lateral. This well was tested at an initial rate of 916 barrels of oil per day and 1.0 MMcf of natural gas per day or 1,085 BOE per day. The Donnell "A" #1H was drilled to a vertical depth of 9,404 feet with a 6,481 foot lateral. This well was tested at an initial rate of 646 barrels of oil per day and 0.2 MMcf of natural gas per day or 686 BOE per day. The Cutter Creek #2H was drilled to a vertical depth of 10,013 feet with a 5,541 foot lateral. This well was tested at an initial rate of 471 barrels of oil per day and 0.4 MMcf of natural gas per day or 541 BOE per day. All of the reported well results were obtained while following Comstock's restricted choke program.

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http://oilshalegas.com/eaglefordshale.html

Eagle Ford Shale - LaSalle Frio County Texas Oil Wells

By Tim - http://oilshalegas.com

November 6, 2011 - The Eagle Ford Shale continues to produce some nice oil wells as we head into 2012. Goodrich Petroleum (GDP) recently reported some of their oil well data which you will see below. These Eagle Ford Shale wells are located in LaSalle County, TX & Frio County, TX.

Eagle Ford Shale, LaSalle and Frio Counties, Texas

The Company completed the following five Eagle Ford Shale wells during the quarter, with an average 24-hour peak production rate of 907 BOE per day:

• Burns Ranch 20H (67% WI), a 5,960 foot lateral with 21 frac stages, at a 24-hour peak production rate of 1,080 barrels oil equivalent ("BOE") per day;
• Burns Ranch 2H (67% WI), an 8,320 foot lateral with 29 frac stages, at a 24-hour peak production rate of 1,004 BOE per day;
• Burns Ranch 3H (67% WI), a 5,160 foot lateral with 19 frac stages, at a 24-hour peak production rate of 953 BOE per day;
• Burns Ranch 18H (67% WI), a 5,060 foot lateral with 19 frac stages, at a 24-hour peak production rate of 883 BOE per day;
• Burns Ranch 19H (67% WI), a 5,940 foot lateral with 21 frac stages, at a 24-hour peak production rate of 613 BOE per day.

The Company completed two additional Buda Lime wells in the quarter:

• Carnes 7H (65% WI), an un-stimulated 4,215 foot lateral, at a 24-hour peak production rate of 1,167 BOE per day and a 30-day average of 871 BOE per day (762 BO and 655 Mcf per day);
• Burns Ranch 30H (67% WI), a 5,060 foot lateral with 19 frac stages, at a 24-hour peak production rate of 500 BOE per day.

The Company is in completion phase on the following wells:

• Burns Ranch 35H (67% WI), an 8,880 foot lateral with 32 planned frac stages;
• Burns Ranch 16H (67% WI), a 5,710 foot lateral with 20 planned frac stages;
• Burns Ranch 22H (67% WI), a 5,520 foot lateral with 20 planned frac stages;
• Shiner G-1 (67% WI), a 4,190 foot lateral in the Buda Lime;
• Shiner G-4 (67% WI), a 4,130 foot lateral in the Buda Lime;

Shale News

OilShaleGas.com

Marathon Oil (MRO) Eagle Ford Shale - Atascosa County

By Tim - http://oilshalegas.com

Marathon Oil Corporation (MRO) is getting involved in the Eagle Ford Shale specifically in Wilson County Texas and Atascosa County Texas.

Marathon Enters Eagle Ford Shale Play - Entry Builds on Company's Strategy Targeting Unconventional, Liquids-Rich Resource Plays.

Nov. 29, 2010 - Marathon Oil Corporation (NYSE: MRO) announced today that it has completed an agreement with Denali Oil & Gas for entry into the Eagle Ford Shale formation in Wilson and Atascosa counties, Texas. Under the terms of the agreement, Marathon will pay Denali $10 million as well as drill and complete four wells to earn approximately 17,000 net acres. Marathon also has the option to purchase Denali's remaining 58,000 net acres in the Eagle Ford Shale in these two counties. If Marathon executes this option, the full 75,000 net acres, including the initial payment, carried well interest and lease extensions, will cost approximately $2,800 per acre or a total of approximately $209 million. Marathon has until Oct. 31, 2011, to exercise this option.

In the event Marathon does not exercise its purchase option, Denali has the option to sell the remaining 58,000 acres to Marathon. The total cost under this option, including the initial payment, carried well interest and lease extensions, would be $92 million or approximately $1,225 per acre. Denali has until the later of Nov. 15, 2011, or 15 days after the completion of the final well, to exercise this option. This agreement covers all of Denali's acreage in Wilson and Atascosa counties but excludes Denali's 25,000 acres in Gonzales and Fayette counties.
"Since acquiring our first shale assets in the onshore U.S. market in 2006, Marathon has developed substantial expertise that we can apply to emerging plays like the Eagle Ford and create more opportunities for mid- and long-term profitable production growth," said Dave Roberts, the Company's executive vice president, Upstream. "This new entry reinforces a key element of our Upstream strategy of targeting unconventional, primarily liquids-rich resource plays providing low-risk, scalable growth."

http://www.marathon.com/News/Press_Releases/Press_Release/?id=1500637

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