Eagle Ford Shale

Comstock Resources - Eagle Ford Shale Update - Third Quarter of 2011

Comstock Resources (CRK) released an update on the company’s operations in Texas where it is developing the Eagle Ford Shale.  The company purchased an additional 6,000 net acres in October 2011 and now has 28,000 net acres prospective for this formation in the oil window of the play.

Comstock Resources has drilled 12 net Eagle Ford Shale wells and completed 8 net wells in the first nine months of 2011.  The company reported that these wells had an average initial production rate of 683 barrels of oil equivalent (BOE) per day.

During the third quarter of 2011, Comstock Resources completed four Eagle Ford Shale wells and has five other wells being completed.

In 2012, Comstock Resources plans to add one rig in the Eagle Ford Shale, increasing the company’s rig count here to three. Comstock Resources has budgeted $227 million of a $396 million capital budget for the South Texas region:

$207 million – Drill 32 gross or 28.9 net wells.

$14 million – Complete 6 gross or 5.6 net wells drilled in 2011.

$6 million – Exploration of other plays in South Texas.

Magnum Hunter Resources Announces 2012 Capital Budget For Eagle Ford Shale

Magnum Hunter Resources (MHR) announced a $200 million capital budget for 2012, and plans to spend $150 million for drilling and completion in the company’s upstream segment.

Magnum Hunter Resources has allocated $75 million to the exploration and development of the Eagle Ford Shale in Texas. This level of expenditure represents 29.4% of the total capital budget for the year. 

Magnum Hunter Resources estimates that this level of capital spending will generate an annual production growth rate between 80% and 90% in 2012.  The company has budgeted $255 million in capital expenditures for 2011.

Crimson Exploration Updates Eagle Ford Shale Activity

Crimson Exploration (CXPO) issued an operational update on the company’s development of the Eagle Ford Shale in Texas.  The company has approved increasing the 2011 capital budget directed towards this play to $78 million, a 30% increase over the previous level.

Zavala County

The KM Ranch #1H well is currently flowing back and the company expects to have results to report in mid August 2011.  The KM Ranch #1H Eagle Ford Shale well was drilled and completed with a 5,800 foot lateral and twenty stages of hydraulic fracturing stimulation.

Crimson Exploration has 2,300 net acres and 147 Eagle Ford Shale drilling location in Zavala County.  The company plans to spud the KM Ranch #2H well in November 2011.  

Karnes County

Crimson Exploration has spud the Littlepage McBride #2H well and expects to begin completion operations in the third quarter of 2011 and report initial production results in September 2011.  

The Littlepage McBride #2H Eagle Ford Shale well is near the Littlepage McBride #1H well, which is currently producing 525 barrels of oil equivalent (BOE) per day and has produced a cumulative 53,000 BOE since starting production.