Eagle Ford Shale

Marathon Oil Buys Into Eagle Ford Shale

Marathon Oil (MRO) has executed an agreement to acquire 17,000 net acres of leasehold in Texas that is prospective for the Eagle Ford Shale. 

Marathon Oil will pay $10 million to Denali Oil and Gas for acreage located in Wilson and Atascosa counties.  The company must also drill and complete four Eagle Ford Shale wells to earn the full 17,000 net acres.

Marathon Oil also has an option to purchase another 58,000 net acres through October 31, 2011.  If Marathon Oil exercises its option, the total cost to the company would be $209 million or $2,800 per acre for all 75,000 net acres.

Denali Oil and Gas also has an option to sell the 58,000 net acres to Marathon Oil through November 15, 2011.  If Denali Oil and Gas exercises this option, the total cost to Marathon Oil would be $92 million, or $1,225 per acre for all 75,000 net acres.

Newfield Exploration - Eagle Ford Shale Conference Call Comments

Newfield Exploration Company (NFX) held a conference call to discuss earnings for the third quarter of 2010, and made comments on its activities in the Eagle Ford Shale in Texas.  The company has 300,000 net acres in the Maverick Basin that are prospective for the Eagle Ford Shale.

“The Eagle Ford Shale is one of the hottest plays underway in the US today. We have more than 300,000 net acres in the highly prospective Eagle Ford Shale. And this acreage is has added less than one year ago, and a very attractive entry costs were approximately $400 per acre.”

“We are investing about a $120 million this year to totally assess our acreage. Our operated rig count has ranged from three to five rigs in recent months, and our plans call for 15 wells to be drilled and completed by year end 2010.”

“To date, four of these wells have been completed and turned to sales, and eight of these wells are growing or in various stages of completion today. As we have consistently stated, we do not plan to make any public announcements about our results until we have comprehensive assessment program completed.’

“We expect to have results to share with you very soon, most likely in early 2011. What I can say is that our results to date have been consistent with our pre-drill planning, and we remain encouraged about the potential of this new area.”

Source

Talisman Energy Acquires Eagle Ford Shale Acreage And Enters Joint Venture Agreement

Talisman Energy (TLM) and Statoil (STO) announced that they have entered into a joint venture agreement and acquired acreage in Texas that is prospective for the Eagle Ford Shale.

Talisman Energy will be the operator of the joint venture, which also agreed to purchase 97,000 net acres in the Eagle Ford Shale from Enduring Resources for  $1.325 billion. The company said that after adjustments, the price per acre was $10,900.

Talisman Energy said that the net cost to the company would be $485 million. Statoil is required to purchase a 50% working interest in the 37,000 net acres that Talisman Energy held prior to the creation of the joint venture.

Details on Property

There are three rigs currently operating on the newly acquired acreage, with current production of 5,500 barrels of oil equivalent (BOE) per day from six wells. Talisman Energy said that the estimated ultimate recovery (EUR) of Eagle Ford Shale wells would average 660,000 BOE per day.

Talisman Energy said that eleven additional wells have been drilled or are currently drilling, and the joint venture plans nine more wells by the end of the year. The company said that the initial production rate on the two most recent wells averaged 3700 BOE per day, with a high proportion of liquids.