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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.

DCP Midstream LLC and DCP Midstream Partners LP said they are constructing the Goliad cryogenic gas processing plant to serve liquids-rich production from the Eagle Ford Shale in South Texas. The plant will have capacity of 200 MMcf/d and will become part of the DCP Eagle Ford system providing Eagle Ford producers one-stop service from the plant tailgate to Gulf Coast market centers, the partners said. The plant will be constructed and funded by the previously announced DCP Eagle Ford Joint Venture formed Nov. 1, which is owned two-thirds by DCP Midstream and one-third by DCP Midstream Partners. It is expected to be completed by the first quarter of 2014. The plant will be the seventh in South Texas owned by the DCP enterprise.

Broken Arrow, OK-based Magnolia Petroleum Plc announced successful well results in the Mississippian Lime play on Tuesday and said well costs would be recovered quickly.

A public-sector water conservancy is appealing to the Colorado Supreme Court for the right to divert and store water for prospective clients, including shale oil and gas operators. A state water court earlier denied the proposal by Yellow Jacket Water Conservancy District.

With natural gas prices hitting a 10-year low this year, U.S. oil and gas companies have shifted their focus and added more profitable liquid-rich unconventional plays to their portfolios, leading to a dramatic increase in the number and total value of asset mergers and acquisitions (M&A) in the third quarter of 2012, according to PwC US.

With non-strategic assets sales behind it, The Woodlands, TX-based Newfield Exploration Co. is focusing on multiple oil and liquids-rich projects and is placing particular emphasis on drilling longer laterals.

With natural gas prices hitting a 10-year low this year, U.S. oil and gas companies have shifted their focus and added more profitable liquid-rich unconventional plays to their portfolios, leading to a dramatic increase in the number and total value of asset mergers and acquisitions (M&A) in the third quarter of 2012, according to PwC US.

With non-strategic assets sales behind it, The Woodlands, TX-based Newfield Exploration Co. is focusing on multiple oil and liquids-rich projects and is placing particular emphasis on drilling longer laterals.

Liquids-rich gas and high initial production rates from oil wells are driving red hot interest in the Eagle Ford Shale, and this is only bolstered by the region’s established midstream infrastructure and proximity to energy markets, Fitch Ratings said in a new report. More isolated shale basins need costly “mega pipelines,” which are tougher on credit ratings, Fitch said.