Eagle Ford Shale

Marathon Oil - Eagle Ford Shale Operational Update

Marathon Oil (MRO) released an update on the company’s operations in the Eagle Ford Shale in Texas, where the company has increased its position to 300,000 net acres.

Marathon Oil is operating 14 rigs in the Eagle Ford Shale and plans to add four more rigs here by the third quarter of 2012.  The company also has four hydraulic fracturing crews under contract and eight wells waiting on completion.

Marathon Oil is currently producing 15,000 barrels of oil equivalent (BOE) per day and expects to meet production guidance for 2012 of 30,000 BOE per day.

Marathon Oil Purchases Additional Eagle Ford Shale Acreage

 Marathon Oil (MRO) reported the purchase of acreage in Texas that is prospective for the Eagle Ford Shale.  The company will pay $3.5 billion to Hilcorp Resources Holdings, LP for 217,000 gross, or 141,000 net acres in Atascosa, Karnes, Gonzales and DeWitt Counties.

 
 
(Yellow - existing MRO acreage, Blue - Hilcorp purchase)

Marathon Oil disclosed other details on the acquired Eagle Ford Shale properties:

• Current production of 17,000 gross or 7,000 net barrels of oil equivalent (BOE) per day from 36 wells. 
• Ten wells drilled and waiting on completion.
• Six rigs operated and two hydraulic fracturing crews under contract.
• Eighty percent of production is crude oil, condensate or natural gas liquids.
• Net production expected to reach 12,000 BOE per day by the end of 2011, and 80,000 BOE per day by 2016.
• Total net risked resource potential of 400 to 500 million BOE.
• Possibility of 100 million BOE of proved reserves booked in 2011.

Marathon Oil And Lucas Energy Sign Joint Venture Agreement In Eagle Ford Shale

Lucas Energy (LEI) and Marathon Oil (MRO) have entered into an agreement to jointly develop the Eagle Ford Shale and other formations on acreage in Wilson County, Texas.

Marathon Oil will receive 50% of the Eagle Ford Shale leasehold, or approximately 1000 net acres, and operate the wells drilled in the joint venture.