Eagle Ford Shale

Petrohawk Energy - Eagle Ford Shale Update - Part One

Petrohawk Energy (HK) held a conference call on November 5, 2009, to discuss its third quarter earnings report. The company has a core acreage position in the Hawkville Field located in the Eagle Ford Shale in South Texas.

Eagle Ford Shale Hawkville Field

“Petrohawk has established the type of continuity to its well results that has effectively de-risked the vast majority of our acres position in the Hawkville field.” “We drilled an additional 10 operated wells, (during Q3 of 2009) seven of those wells have been completed with an average initial production rate of 6.7 million and 220 barrels of condensate per day.”

Eagle Ford Shale Hawkville Field Production

“We currently have 16 wells on production with gross operative production of approximately 55 million cubic feet per day and 1300 barrels of condensate per day. 12 of these wells have been on production for more than 30 days and have averaged 5.3 million cubic feet per day and 110 barrels of condensate per day. All of these production volumes would be greatly enhanced when the prevailing revenue equivalency ratio is used which is currently approximately 15 to 1.”

Eagle Ford Shale Hawkville Field Well Cost

“Of the nine wells drilled during the quarter that were drilled without a pilot hole the average number of days from spud to total depth was less than 19 days and the average cost of rig release was $2.3 million.”

Source: Seeking Alpha

Rosetta Resources - Eagle Ford Shale Update - Part II

Rosetta Resources Inc. (ROSE) held its third quarter conference call on November 9, 2009 and discussed its operations in the Eagle Ford Shale in Texas. Rosetta Resources has recently expanded its position and now has 47,000 net acres in the Eagle Ford Shale. Some of its acreage is in the Springer Ranch area.

Eagle Ford Shale Acreage and Well Results

“The initial Springer Ranch discovery well continues to meet our performance expectations. Our second exploratory well, the Gates Ranch, was also a success. We are preparing to drill our third horizontal well in the play, which we will spud later this quarter, and our lease position continues to grow.”

Springer Ranch

“Santa Cruz number 1H, during the fourth quarter of this year. This new well will test the southern limits of our Springer Ranch acreage position and will be located nearly nine miles south of the number 1H discovery well.” 

"We have increased our Springer Ranch acreage position during the quarter and now have more than 14,000 net acres or about 30% of our total Eagle Ford acreage in the vicinity of this well."

Source: Seeking Alpha

Rosetta Resources - Eagle Ford Shale Update - Part I

Rosetta Resources Inc. (ROSE) held its third quarter conference call on November 9, 2009, and discussed its operations in the Eagle Ford Shale in Texas. The company is expanding its development of the Eagle Ford Shale, and will decrease the spacing of its frac stages to stimulate more production. Rosetta Resources now has 47,000 net acres in the Eagle Ford Shale located primarily on the Springer and Gates ranch area.

2010 Capital Budget

“We expect to substantially increase our capital program in 2010, compared to 2009. I'm also comfortable saying that a significant portion of our 2010 capital will likely be directed toward our Eagle Ford programs.”

Eagle Ford Shale Frac Stages

“On the Santa Cruz well is that, we will test, increasing the density of our frac stages from roughly 400 feet apart down to roughly 300 feet apart. By doing this, we will better understand rock characteristics and fluid flow, which will help us continually optimize the development of our leasehold.”

Gates Ranch 5D-9H Well

“Well has been successfully drilled horizontally to a total measured depth of 12,400 feet, with a lateral length of approximately 3,700 feet. The well was completed using a 10-stage frac and was first delivered to sale on October 6 of this year.”

“The well was producing on a 24/64 inch choke at a rate of 3.5 million cubic feet of gas per day and 337 barrels of condensate per day. If you do the math, the condensate yield calculates out to roughly 90 barrels per million cubic feet, which is one, if not the highest, condensate yields in the area.”

Source: Seeking Alpha