South Texas has recently reported that the Eagle Ford Shale has continually produced positive results in the economy. The 400 mile- long and 50 mile- wide rock formation has been attracting drillers from around the world. Companies are spending huge amount for the development and expansion of their drilling operations in Texas.
The growing profit from the different operations in Eagle Ford Shale has also attracted other oil and gas companies in the site. These companies are chasing to what is already to referred as the hottest location for resources in the oil and gas industry. Majority are willing to spend huge amount because of the promising profits Eagle Ford can offer to the business. Investors are even becoming more and more interested when key players start reporting the growth.
According to AEI Ideas, Eagle Ford Shale has “monster wells” producing up to 5,000 barrels per day. Their report also says that crude oil production in Texas has roughly doubled in just the last three years, from 1.08 million barrels of output per day in September 2009 to 2.05 million barrels per day in September of 2012. Read the full article.
Players of the Eagle Ford Shale have reported promising profits in 2012.
Sanchez Energy Corporation, a company engaging in the exploration for and development of oil and natural gas in the US, has produced an approximate of 4,500 barrels of oil equivalent per day by the end of 2012. This is a 233% increase from the end of the previous year. Read article here.
Carrizo Oil & Gas has planned to 77% of the company’s budget for Eagle Ford in 2013. By the end of 2012, Carrizo had drilled 91 horizontal wells and had brought 68 to production. They also reported that currently, wells have produced a little over 500 barrels per day of oil in the first 30 days and 360 bbls/d of oil over the first 180 days. Read article here.
According to Jennifer Hiller’s article entitled “Finding the Sweet Spots of the Eagle Ford”, company’s who hit the sweet spots are enjoying the success of their operation.
1. Becca Followill of U.S. Capital Advisors LLC said companies operating in Gonzales, DeWitt and Karnes counties have seen initial rates of return higher than 50 percent, with some wells as high as a 70 percent.
2. Marathon Oil Corp.’s third-quarter report noted that one of its Gonzales County wells reached a production level of 6,275 barrels per day, and of that, 4,646 barrels were oil and natural gas liquids.
3. EOG Resources holds the largest acreage position in the Eagle Ford, including more than 570,000 acres in the oil window, according to Hart Energy, and has said this year in calls with analysts that it completed 28 “monster wells” in a six-month period, which it defines as having initial production rates from 2,500 and 4,800 barrels of oil per day, plus gas and natural gas liquids.
With the promising numbers reported by the key players in the industry, there is no wonder that Eagle Ford Shale will continue to attract more companies and investors in Texas.