With a checkbook fattened by a recent Permian Basin asset sale, Comstock Resources is on the hunt for acreage in two emerging oil plays somewhere in its historic stomping grounds of Texas, Louisiana, Oklahoma and Mississippi. CEO Jay Allison is prepared to spend $120 million in two basins, but he’s not saying exactly where.
Eagle Ford Shale
Articles from Eagle Ford Shale
Texans have voted overwhelmingly for a constitutional amendment to allocate $2 billion from the state’s “rainy day” fund to programs intended to secure water supplies in the frequently drought-stricken state. The measure had the support of the oil and gas industry, whose use of water for hydraulic fracturing is often scrutinized.
Marathon Oil Corp. continued to raise its game in the Eagle Ford Shale during the third quarter, improving drilling times by 20% from a year ago and bringing drilling and completion costs down by 20%. The company still plans to exit the year with net production of about 100,000 boe/d from the South Texas play.
ConocoPhillips executives said most of the company’s production growth during 3Q2013 came from shale plays in the Lower 48 — especially the Eagle Ford and the Bakken — and predicted “significant growth and very high margin growth” from the Eagle Ford for several more years.
About half of the active land drilling rigs in the United States are drilling in Texas, home of red hot oil plays in the Permian Basin and Eagle Ford Shale. Based on preliminary Railroad Commission of Texas (RRC) production figures for August, production of oil and gas in the state are up from year-ago levels.
Like the lumbering giants they resemble, oil majors take a bit more time to pivot from one target to the next, a task exceedingly difficult for North America’s top natural gas producer, ExxonMobil Corp. The pirouette to more oily targets came full circle in the third quarter in the three most strategic U.S. leaseholds, the Permian Basin and the Woodford and Bakken shales.
Sanchez Energy Corp. is in full development mode in each of its project areas in the Eagle Ford Shale and is preparing to begin an operated drilling program next year on recently acquired Tuscaloosa Marine Shale (TMS) acreage. Third quarter production was up by 710% from the year-ago quarter.
It’s not how many rigs there are in the shale patch; it’s what they’re doing. As drilling productivity continues to climb, the industry has realized a simple rig count is a poor indicator of future production. Now the Energy Information Administration (EIA) is monitoring and reporting on drilling productivity.