Anadarko's Eagle Ford Well Costs Down Below $6 Million

Anadarko Eagle Ford Acreage Map

Anadarko's Eagle Ford production is up 55% from one year ago to 42,200 boe/d. Liquids volumes account for 28,000 b/d of production and grew even faster at a rate of 60% over the past year.

Anadarko drilled 70 Eagle Ford wells in the quarter with an average of eight rigs working. Drilling times continue to fall and many of the company's wells are now drilled in less than 10 days. Completion costs are coming down as well and the company is spending an average of $5.5-6 million per well.

Charles Meloy, Senior VP, stated "We are in the middle of doing tie-ins to the Brasada plant, and so we will have quite a bit of downtime associated in our Eagle Ford production area as we tie in the Brasada plant and the associated facilities in the field."

The company is bringing 200 mmcf/d of processing capacity online in the second quarter. The Brasada Plant is just south of Cotulla in La Salle County, TX, and will be completed in late May or early June. Anadarko has spent $100 million to build the plant and will increase its liquids yield even more when the plant comes online.

Read the full first quarter press release at anadarko.com

Halcon Plans Eagle Ford Development in Brazos County, TX

Halcon Eagle Ford Activity Map

Halcon is extending the Eagle Ford north into Brazos and Robertson counties in what the company has deemed the "El Halcon" prospect.

The company unveiled a 50,000 net acre position with plans to expand to 150,000 net acres in and around northern Brazos County.Early well results looking promising. The first two wells produced 859 boe/d and 694 boe/d, respectively. Both wells had a production stream that was 94% oil.

The first few wells have effective lateral lengths of 5,632 ft and were completed with 28 frac stages. Halcon estimates each well will recover 350,000-400,000 boe at a cost of $7-8 million.

“This management team knows a thing or two about the Eagle Ford Shale, and we intend to utilize our extensive knowledge of the formation to exploit this new opportunity to create shareholder value.”

— Floyd C. Wilson, CEO

Halcon's plans in the area are to run 1-3 rigs, with capital spending estimated at $100 million in 2013.

Woodbine Area Targeted And More Being Evaluated

Halcon Resources Eaglebine Map

Halcon also announced the company plans to focus its Woodbine efforts around 220,000 acres in Leon, Madison, Grimes, and Polk counties. The company has confidence in the limits of the Halliday Field and will begin to focus on operational efficiencies.

The results of a 3D seismic survey in Madison, Grimes, and Walker counties should be processed by the end of 2013. The data will allow the company to plan exploration in this less proven area.

Read more in the press release at halconresources.com

Swift Energy Looks For Eagle Ford Partner as Wells Improve

Swift Energy Eagle Ford Well Expectations

Swift Energy held its annual analyst meeting the past week. It has been an exciting two years for the company as both production and reserves have grown by more than 40%. During that time, the Eagle Ford has become the company's top performing asset.

Highlights from the Eagle Ford portion of the company presentation include:

• Initial production rates have improved 10% in oil & condensate wells
• Estimated Ultimate Recoveries have improved in step at 10%
• Drilling and completion costs have come down 10% or $800,000

Swift Eagle Ford Lateral Placement - Seismic

Wells benefited in 2012 from more precise lateral location (in the lower Eagle Ford) and improved completion techniques. Drilling days have fallen by 22% to 8.5 days and the company is completing 7-8 stages per day compared to just 4-5 in 2011.

Successful downspacing tests at 60-80 acres in McMullen and La Salle counties have increased the company's drilling inventory by 30%.

Swift Plans For Eagle Ford JV Partner

In an effort to accelerate development of Swift Energy's Eagle Ford properties, the company plans to bring in a joint venture partner. A joint venture partner, or outside capital, will enable the company to improve project returns and accelerate value recognition. The working interest that is being offered was not disclosed, but I suspect we'll see Swift raise upwards of $100-200 million.

Rosetta Resources Eagle Ford Well Costs Coming Down

Rosetta Eagle Ford Activity

Rosetta Resources grew proved reserves by 25% and production by 35% in 2012. All while the company was driving Eagle Ford well costs down by $1 million per well.

The company shifted its focus to liquids resources in the Eagle Ford over the past few years and the company's production mix reflects the change. Production in the fourth quarter of 2012 was 62% liquids versus just 49% a year earlier.

The company spent $514 million drill 80 Eagle Ford wells and complete 62 in 2012. Over the past few quarters, the company has driven its well costs down to $6.5-7 million per well. That's approximately $1 million less than prior guidance.

"During 2012 we ramped up our development efforts in the Eagle Ford shale expanding our drilling program into four areas," said Randy Limbacher, Rosetta's  CEO.......Our results were favorably impacted by rapidly decreasing well costs during the second half of the year that further enhanced asset values and will provide greater flexibility in implementing our 2013 capital program."

Rosetta plans to spend approximately $600 million in the Eagle Ford in 2013 to drill 75 wells and complete 62 wells. $55 million of the $600 will be spent on facilities in the area.

Forest Oil Adds Walking Rig - Expects to Save 8-15%

Forest Oil Eagle Ford Core Acreage Map

Forest Oil added a rig walking system to one of its rigs in the Eagle Ford and plans to start multi-well pad drilling on its central fairway acreage. A four well pad site is expected to be drilled in 65 days compared to 85 days of drilling for four wells on separate pads. Costs savings are estimated at 8-15% depending on the lateral length and completion design. Currently, the company estimates cost at $5.5-6 million per well.

During the quarter, two wells were completed at unrestricted average rates of 638 boe/d and four wells were brought online in the company's restricted rate program at an average rate of 542 boe/d. 

Third quarter production volumes increased to 1,800 boe/d net to Forest. The company has 100,000 gross (91,000 net) acres in what the company characterizes as the "oil bearing" portion of the play. Current development plans will hold approximately 40,000 net acres in the coming years.