Pioneer Natural Resources (PXD) held a conference call on July 30, 2010 to discuss the company’s earnings for the second quarter of 2010. The company commented on its operations in the Eagle Ford Shale in Texas.
Pioneer Natural Resources recently signed a joint venture with Reliance Industries on acreage in the Eagle Ford Shale, giving the company extra capital to develop its properties even faster. The company favors the play because of the high liquids content of wells in the area of the Eagle Ford Shale that it is developing.
“Obviously the most important thing that happened during the quarter was the transaction with Reliance allows us to accelerate, protect our acreage, more drilling in the Eagle Ford Shale play…allows us to accelerate significantly taking Eagle Ford up to our net share about 100,000 barrels a day over the next several years.”
“We have five rigs running in the field in three different counties. We are actually showing very steady improvement in terms of reducing well cost and days drilling on these wells to 30 days or less, and that's what you expect the further we continue down the learning curve in terms of performance on drilling."
“A high yield well, of say 200 barrels per million cubic feet, and we were in the area of 50% NGL compared to WTI prices, we'd be generating an 85% rate of return. In the lower condensate yield areas, that would be more of about 60 barrels per billion, a 60% return…We want to show that the Eagle Ford Shale economics are very resilient, even with low NGL pricing.”
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Posted by: Jett | 08/06/2010 at 12:03 PM
lets hope for the best in Live Oak County.
Posted by: Atserv1 | 08/08/2010 at 12:17 PM