Houston-based Sanchez Energy Corp., which has a 95,000-net acre position targeting the liquids-rich Eagle Ford Shale, Pearsall Shale, Austin Chalk and Buda Limestone, said its estimated current net production is 4,400 boe/d, of which 84% was oil. This rate represents a 159% increase over the third quarter net production exit rate of 1,700 boe/d (see Shale Daily, Oct. 30). “We continue to see strong well performance across our three focus areas as we execute on the remainder of this year’s development plan,” said CEO Tony Sanchez. “Additionally, we are testing tighter spacing in each of our positions in the Eagle Ford trend and, more specifically, one of the rigs in our Palmetto area is drilling the first of a five-well, 40-acre spacing pilot on the southern part of the Barnhart Ranch.” The company is running two rigs in the Palmetto area, one rig in the Maverick area, and two rigs in the Marquis area.
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Transportation Notes
El Paso said during its annual bottom-hole survey and emergency shutdown/Department of Transportation inspection at the Washington Ranch Storage Facility, scheduled for Monday through Sept. 19, its “operational flexibility will be extremely limited as no injection or withdrawal will be possible.” This is in addition to limitations from ongoing unscheduled anomaly remediations on Lines 1100, 1103 and 1110 between the Pecos River and Guadalupe compressor stations, El Paso said in an appeal to shippers asking them to stay balanced on transportation nominations during this time.
Chesapeake to Spin Off Granite Wash Royalty Trust
Chesapeake Energy Corp. has found another way to fund development for some of its abundant unconventional reserves, this time by launching an initial public offering (IPO) of a royalty trust for properties in the Anadarko Basin.
EXCO CEO: ‘A Lot of a Little Is Still a Lot’
During the first quarter predominantly shale gas-focused EXCO Resources Inc. produced more and sold it for less. The company had planned to do the former and is making the best of the latter, said CEO Doug Miller, who told financial analysts Wednesday that “it’s hard to put lipstick on this pig.”
Industry Brief
Local elected officials have approved plans for the development of a 640-acre energy park on ranch land in northern Weld County, CO. The developer of the proposed Niobrara Energy Park told Weld County commissioners that he envisions a hybrid energy park, mixing old and new energy resources. The project would include 200 acres of solar panels, geothermal production, a natural gas-fired electric generating plant and possibly a super data center along the lines of ones developed in the Pacific Northwest for Facebook and Google. Located about 35 miles north of Greeley, CO, the park has been given a list of up to 50 possible uses, but the developer, Loveland, CO-based Harrison Resource Corp., said it was still unclear if it would be developed as one comprehensive plan or a number of separate projects on parts of the designated park land.
Eagle Ford Gathering Expansion Online
Meritage Midstream Services has completed and begun flowing gas on the Fasken Ranch lateral pipeline, which is an extension of the company’s Eagle Ford Escondido Gathering System in Webb County, TX.
Correction
The story “Construction Starts on California Gas Storage Field” (see Daily GPI, Jan. 13) misstated the length of a pipeline that will be built to connect the Gill Ranch natural gas storage facility currently under construction in the San Joaquin Valley of California to PG&E’s existing transmission backbone pipeline (No. 401) north of Panoche, CA. The actual length of the to-be-built pipeline is 25 miles. NGI regrets the error.
In Wyoming, A Sage Grouse Can Catch A Break
A group led by The Conservation Fund has struck a deal to permanently protect 1,042 acres of sage grouse habitat on a working cattle ranch southwest of Daniel, WY, and improve habitat conditions on more than 25,000 acres of adjacent land owned by the Bureau of Land Management (BLM), the fund said last week.
Threatened Sage Grouse Catch A Break in Wyoming
A group led by The Conservation Fund has struck a deal to permanently protect 1,042 acres of sage grouse habitat on a working cattle ranch southwest of Daniel, WY, and improve habitat conditions on more than 25,000 acres of adjacent land owned by the Bureau of Land Management (BLM), the fund said Wednesday.
Transportation Notes
Southern California Gas regained 1 Bcf/d of storage withdrawal capacity Wednesday. It reported completion of maintenance work at the Honor Ranch facility (see Daily GPI, Sept. 19).
