Eagle Ford Shale

Penn Virginia Adds To Eagle Ford Shale Position

Penn Virginia (PVA) has purchased an additional 4,100 net acres prospective for the Eagle Ford Shale in Texas.  The company will pay $10 million for 3,200 net acres in Gonzales County and 895 net acres in Lavaca County. 

Penn Virginia said that the joint venture partners involved with the company will receive their share of the acquired acreage, leaving 3,000 net acres for the company and increasing its total Eagle Ford Shale position to 30,000 net acres.

Comstock Resources - Eagle Ford Shale Update - Third Quarter of 2011

Comstock Resources (CRK) released an update on the company’s operations in Texas where it is developing the Eagle Ford Shale.  The company purchased an additional 6,000 net acres in October 2011 and now has 28,000 net acres prospective for this formation in the oil window of the play.

Comstock Resources has drilled 12 net Eagle Ford Shale wells and completed 8 net wells in the first nine months of 2011.  The company reported that these wells had an average initial production rate of 683 barrels of oil equivalent (BOE) per day.

During the third quarter of 2011, Comstock Resources completed four Eagle Ford Shale wells and has five other wells being completed.

In 2012, Comstock Resources plans to add one rig in the Eagle Ford Shale, increasing the company’s rig count here to three. Comstock Resources has budgeted $227 million of a $396 million capital budget for the South Texas region:

$207 million – Drill 32 gross or 28.9 net wells.

$14 million – Complete 6 gross or 5.6 net wells drilled in 2011.

$6 million – Exploration of other plays in South Texas.

Rosetta Resources Increases EUR Of Eagle Ford Shale Wells In Gates Ranch Area

Rosetta Resources (ROSE) reported an update on the development of the Eagle Ford Shale during the second quarter of 2011. 

Rosetta Resources increased the gross estimated ultimate recovery (EUR) of Eagle Ford Shale wells in the Gates Ranch area to 10 Bcfe, from 7.2 Bcfe previously.  This increase is based on up to two years of performance in some areas, according to the company.

Rosetta Resources estimates that each Eagle Ford Shale well in the Gates Ranch area has a pretax net present value of $20 million.

Rosetta Resources reported average production of 129 million cubic feet of natural gas equivalents per day in the second quarter of 2011, up from 89 million cubic feet of natural gas equivalents per day in the previous quarter.  This represented sequential growth of 45% and Eagle Ford Shale production is now 80% of the company’s total production.

Rosetta Resources has completed forty horizontal wells into the Eagle Ford Shale as of 6/30/2011, and is currently operating three rigs in the play. The company plans to drill between 25 and 28 additional Eagle Ford Shale wells in 2011

Rosetta Resources recently started two pilot infill drilling programs at the Gates Ranch area to test fifty acre down spacing.  The first pilot program has been drilled and the company expects the wells to be completed by the end of 2011.