Eagle Ford Shale

Pioneer Natural Resources Details Eagle Ford Shale Development Through 2013

Pioneer Natural Resources (PXD) and Reliance Industries outlined its development plans for the Eagle Ford Shale over the next few years. The development plan through 2013 is as follows:

Balance of 2010 – 26 wells – 7 rigs by end of year

2011 – 70 wells – 10 rigs by end of year

2012 – 120 wells – 14 rigs by end of year

2013 – 140 wells – 14 rigs by end of year

Pioneer Natural Resources has drilled and completed 6 horizontal wells in the Eagle Ford Shale, with 5 of them currently on production. The company is currently developing its acreage in Live Oak, Karnes and DeWitt Counties, Texas, and has 3 additional wells awaiting completion.

Pioneer Natural Resources estimates that its net production from these Eagle Ford Shale properties will increase from an average of 2,000 barrels oil equivalent (BOE) per day in 2010 to the following:

2011 - a range of 10,000 to 13,000 BOE per day

2012 - a range of 19,000 to 24,000 BOE per day

2013 - a range of 32,000 to 41,000 BOE per day.

Pioneer Natural Resources - Eagle Ford Shale - Joint Venture Details

Pioneer Natural Resources Company (PXD) reported the final details of the company’s joint venture with Reliance Industries in the Eagle Ford Shale.

Pioneer Natural Resources sold a 45% interest in 212,000 net acres in the Eagle Ford Shale for a total price of $1.15 billion, consisting of $266 million in cash, and a drilling carry of $879 million. Reliance Industries will pay 75% of all drilling costs until the $879 million is satisfied.

Pioneer Natural Resources will stay as the operator of the Eagle Ford Shale acreage, and Reliance Industries will also participate as a 49.9% partner to develop midstream assets.

El Paso Reports Three Eagle Ford Shale Completions

El Paso Corporation (EP) reported the results of three horizontal wells drilled on its acreage in the Eagle Ford Shale. The company has 165,000 net acres, with 100,000 net acres prospective for the liquids rich area of the Eagle Ford Shale.

The Hixon 4H well had an average initial production rate of 2.1 million cubic feet of natural gas per day and 765 barrels per day of condensate. The Hixon 4H was drilled to a depth of 9,900 feet, and completed with an 18 stage hydraulic fracturing operation utilizing a 5,000 foot lateral.

The Hixon 2H well had an average initial production rate of 1.6 million cubic feet of natural gas per day and 584 barrels per day of condensate. The Hixon 2H was drilled to a depth of 9,900 feet, and completed with a 13 stage hydraulic fracturing operation utilizing a 3,800 foot lateral.

The Nunley Traylor 1H well had an average initial production rate of 6.4 million cubic feet of natural gas per day. The Nunley Traylor 1H was drilled to a depth of 12,600 feet, and completed with an 14 stage hydraulic fracturing operation utilizing a 5,000 foot lateral.

All three Eagle Ford Shale wells are located in LaSalle County, Texas.