Eagle Ford Shale

Murphy Oil Talks Up Drees A-79 1-H Eagle Ford Shale Well

Murphy Oil (MUR) is slowly developing the acreage position that the company has built up in the Eagle Ford Shale, and spoke highly about the Drees A-79 1-H Eagle Ford Shale well during the second quarter conference call. The company completed the well earlier in 2010.

“In well operations, we initiated flow-back on JOG Unit #1 well in Karnes County. The well was drilled to a total depth of 15,500 feet with the lateral section of 4,205 feet. The well is currently flowing at 524 barrels of oil per day in the initial clean-up stage.”

“This well is five miles from our previously announced Drees A-79 1-H oil well that IPed at 1,476 barrels of oil per day and now five months later that well is still producing at 435 barrels of oil per day. Plans are to continue to appraise this area with likely sanction of an oil develop later in the year.”

“The Drees A-79 1-H well is a pretty nice looking well. I’m getting myself some data here in front of me. I have to say it’s a pretty straight-line decline and we originally thought that these wells would recoup something in the 350,000 barrels per well."

"We’ve recovered well over 100,000 barrels from that well so far in the first five months. So that’s clearly not the right number. I would think that we would be well north of 500,000 barrels from that well.”

Source

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 Reports Completion Of The Drees A-79 1-H Eagle Ford Shale Well

Murphy Oil (MUR) released an operational update on its activities in the Eagle Ford Shale in Texas. The company recently completed the Drees A-79 1-H well, located in Karnes County, Texas.

The well was completed with a 15 stage hydraulic fracturing operation, and a 4,985 foot lateral. Murphy Oil said that this Eagle Ford Shale well flowed at an initial production rate of 1,462 barrels of oil per day and 1.25 million cubic feet of natural gas per day.

Murphy Oil has 200,000 net acres prospective for the Eagle Ford Shale, and is currently operating 2 rigs.