Eagle Ford Shale

Murphy Oil - Eagle Ford Shale - First Quarter Of 2010 Update - Part One

Murphy Oil (MUR) reported earnings for the first quarter of 2010, and held a conference call to discuss the results. The company disclosed additional details on its acreage in the Eagle Ford Shale in Texas.

Murphy Oil (MUR) has accumulated more than 200,000 net acres across the oil and gas windows and has 2 rigs operating in the Eagle Ford Shale. The company has drilled 4 wells and reported the results of the Drees A-79 1-H and George Miles #1 well.

Drees A-79 1-H Well

“In the oil trend our number Drees number one in Karnes County came in at 1462-barrels of oil a day plus 1.25 million cubic feet of gas and had a 30-day production average of 1264-barrels of oil and 1.1 million cubic feet of gas per day. Clearly, a very strong well, and one that sets us up for a nice development.”

“The oil well in the Carnes is a great well and today, I was looking this morning before I came in and it's flowing 860-barrels of oil and 770,000 cubic feet. So that's after almost 60 days, 58 days today of production, so a real strong well.”

George Miles Well

“The second well in this acreage block spud shortly. The other two drilled wells are situated in the gas trend and are in various stages of completion. The earlier reported well test at the George Miles number one well in McMullen County is producing at less than 1 million cubic feet a day.”

“Here (George Miles well) our frac treatment did not open up all of the zones we thought and we are re-looking at our options. We have just completed a previously drilled well Ash Number 1 purchased as part of an acreage drill that's in LaSalle County and clean up is just above 2 million cubic feet a day.”

“Our budget for the Eagle Ford this near had a nominal 10 million cubic feet a day and clearly we aim to improve on that. On the beauty of this particular play is the ability to ship focus between the oil to the gas parts as product prices dictate.We’ve got $115 million in our budget for Eagle Ford spend.”

Source: Seeking Alpha

Murphy Oil - Eagle Ford Shale Update - Part I

Murphy Oil (MUR) held its fourth quarter of 2009 earnings conference call on January 28, 2010, and discussed its operations in the Eagle Ford Shale in Texas. The company has completed one horizontal well into the Eagle Ford Shale, and is working on two other wells, one in Karnes County and one in LaSalle County.

Eagle Ford Shale Acreage

“In 2009, we’re very active in acquiring leases especially in the Eagle Ford Shale, but for 2010 will be much more tilted toward exploration drilling activity. Our budget assumed WTI pricing of $65 per barrel and Henry Hub pricing of $5 per Mcf.”

First Eagle Ford Shale Well

“We are off to a great start with our Eagle Ford Shale program in south Texas. We recently announced the discovery at our first well, the George Miles number one drilled in McMullen County. Initial rate of flow from the well was approximately 7.5 million cubic feet a day. This was increased to 11.7 million cubic feet a day once tubing was run. That well is hooked up and making sales at approximately 4 million cubic feet a day and still has a lot of water to come out of the well before we get the improved rate.”

Source: Seeking Alpha

Murphy Oil Reports Eagle Ford Shale Well

Murphy Oil (MUR) reported the completion of its first horizontal well in the Eagle Ford Shale. The well was located in McMullen County, Texas.

The George Miles #1H well had an initial production rate of 7.5 million cubic feet of natural gas per day. This Eagle Ford Shale well was drilled to a depth of 13,320 feet and then completed with a lateral of 3,190 feet and a 13 stage hydraulic fracturing operation. Murphy Oil is currently drilling a second horizontal well in Karnes County.

Murphy Oil is at an early stage of its development of the Eagle Ford Shale. The company has a three well evaluation program underway and has not disclosed its acreage position, only calling it “meaningful.”