Cabot to Keep Eagle Ford Spending Low

October 31, 2016 Elizabeth Alford

Cabot Oil announced plans to allot 21% of its E& P budget to Eagle Ford in 2017.

Cabot Oil & Gas Corporation is one of the first operators out of the gate to report financial and operating results for the third quarter of 2016.

Executives report a strong financial position with over $500 million cash on hand. Other highlights for the quarter include:

Equivalent production growth of six percent relative to the prior-year comparable quarter, driven by a nine percent growth in natural gas production;
Positive free cash flow (cash flow from operating activities less capital expenditures) for the third quarter and year-to-date;
Cash operating expenses per unit improved by 13 percent relative to the prior-year comparable quarter;
Approximately $2.2 billion of liquidity and only $1.0 billion of net debt as of quarter-end

Eagle Ford Operations

For 2017, 21% Cabot’s E&P budget for drilling, completion and facility capital will be directed to the Eagle Ford, where they will focus on the following:

Maintaining lease hold
Holding oil volumes flat
Generating a cash-flow-neutral operating program
Drill approximately 15 net wells in the Eagle Ford Shale
Complete 25 net wells in the Eagle Ford Shale

“We have allocated $225 million for maintenance capital in the Marcellus and Eagle Ford which is the amount of capital needed to hold our anticipated 2016 exit production flat throughout 2017 and also allows us to meet all our obligatory operating commitments to maintain our lease hold.”

— CEO Dan Dinges

Eagle Ford Rig Count Increases to 40

October 29, 2016 Elizabeth Alford

**Eagle Ford Operators Put Rigs Back Online**

The Eagle Ford Shale rig count gained one this week, with 40 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, international energy company, Statoil, announced the creation of a new fund to benefit the Eagle Ford Shale region of south Texas.

A total of 555 oil and gas rigs were running across the United States this week, a gain of four from last week. 114 rigs targeted natural gas (six more than the previous week) and 441 were targeting oil in the U.S. (two less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 256 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. 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 below.

Eagle Ford Oil & Gas Rigs

Seven rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.11/mmbtu.

33 Eagle Ford rigs were targeting oil with WTI oil prices dipping to $48.70 .

A total of 36 rigs are drilling horizontal wells, zero are drilling directional wells and four are vertical.

LaSalle County leads production this week with eight rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

EVX to Build Eagle Ford Gathering System

Carrizzo Acquires Eagle Ford Acreage

Statoil Establishes Eagle Ford Fund

EIA: Eagle Ford Shale the Biggest Loser

Kinder Morgan: Eagle Ford Contributes to Decreased Volumes

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.

EVX to Build Eagle Ford Gathering System

October 27, 2016 Elizabeth Alford

**EVX Midstream Expands in the Eagle Ford**

EVX Midstream Partners announced last week it has entered into a agreement to build another crude oil gathering system in the Eagle Ford.

The new gathering system, EVX South Texas Crude, will expand the company’s position in the region and will include a substantial acreage dedication and existing crude oil production in Frio, La Salle and McMullen Counties, Texas.

“We are pleased to continue our multi-commodity development plans in the Eagle Ford. Our business model is to serve producers by handling all of their midstream needs. EVX’s operational and commercial expertise allows us to develop crude oil, natural gas, and water systems of any scale.”

— Herb Chambers IV, President and CEO of EVX

The Woodlands-based EVX is also evaluating other expansion opportunities in the Eagle Ford area.

The Eagle Ford continues to be an attractive target for midstream deals. In July, Sanchez Production Partners initiated a transaction with Sanchez Energy to acquire 50% interest in Carnero Gathering, LLC. The company expects that the $44 million deal will increase their midstream revenue and adjusted EBITDA to approximately $7 million.

EVX’s Eagle Ford systems provides efficient, safe and scalable midstream field services for crude oil and water. Their infrastructure includes natural gas gathering, treating, processing, water gathering and crude oil gathering, blending and storage.

Carrizzo Acquires Eagle Ford Acreage

October 26, 2016 Elizabeth Alford

Carrizo strengthens its position in the Eagle Ford through a $181 million deal with Sanchez.

Earlier this week, Carrizo Oil & Gas, Inc. announced it has signed an agreement to acquire 15,000 acres in the heart of the Eagle Ford from Sanchez Energy Corporation.

Acquisition highlights include:

Approximately 15,000 net acres located in LaSalle, Frio, and McMullen counties, TX
Estimated net production during September of approximately 3,100 Boe/d (61% oil) from 112 gross (93 net) wells
Net proved reserves estimated at 14.5 MMBoe (71% oil, 56% developed)
Approximately 80 net de-risked drilling locations based on a single layer development in the Lower Eagle Ford Shale, with additional upside potential from stagger-stack development, infill drilling, and additional zones
Acreage is 100% operated with no additional drilling requirements

In September, Carrizo announced they were increasing capital expenditures for the Eagle Ford and looking for additional opportunities to increase their holdings in the region.

After the closing in December 2016, Carrizo will hold over 100,000 net acres in the Eagle Ford Shale, concentrated in LaSalle, McMullen, and Atascosa counties. The acquisition also increases Carrizo’s drilling inventory in the play to approximately 1,100 net locations.

The transaction has an effective date of June 1, 2016, and is currently expected to close by mid-December, 2016. Carrizo plans to fund the acquisition with the proceeds from a separately-announced equity financing.

“We are pleased to announce this bolt-on acquisition in the Eagle Ford Shale, as it increases our acreage position in the play by more than 15% and expands our Core inventory in it by approximately 10%, with additional upside possible from a combination of infill drilling and multi-zone development. ”

— S.P. “Chip” Johnson, IV, Carrizo’s President and CEO

In the same press release, the company also estimated 2016 third quarter production volumes of 3,750 MBoe, or 40,762 Boe/d, an increase of 13% versus the third quarter of 2015. Oil production during the third quarter of 2016 averaged 24,488 Bbls/d, while natural gas and NGL production averaged 69,262 Mcf/d and 4,730 Bbls/d, respectively.

Carrizzo credits high volumes to stronger-than-expected performance from the company’s Eagle Ford Shale and Delaware Basin assets.

Statoil Establishes Eagle Ford Fund

October 25, 2016 Elizabeth Alford

International energy company, Statoil, announced the creation of a new fund to benefit the Eagle Ford Shale region of south Texas.

Related: Statoil in the Eagle Ford

Statoil Gulf Services LLC has established the Statoil Gulf Services LLC Advised Fund, which will provide grants to first responders and to schools with science, technology, engineering, and math (STEM) education programs within the Eagle Ford.

The fund will be managed by the Coastal Bend Community Foundation and will focus on activities in Bee, DeWitt, Karnes, Live Oak, LaSalle, and McMullen counties.

As a founding member of the South Texas Energy & Economic Roundtable (STEER), Statoil actively contributes to connecting the oil and natural gas industry to South Texas communities. Among their efforts include support of the Karnes County Eagle Ford Energy S.T.E.M. camp, and the Chisholm Trail Heritage museum and events such as George West Storyfest and Yorktown Western Days.

Statoil has been active in the Eagle Ford formation since 2010 through a joint venture. In 2013, they became operator of the eastern portion of the asset, and have since continued to improve our operations, reducing our footprint locally and becoming even more efficient. The company has approximately 71,000 net acres in the play.

Cookie Settings

Eagle Ford Operations

Eagle Ford Oil & Gas Rigs

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

What is the Rig Count?