Eagle Ford Shale

Houston-based Swift Energy Co. and PT Saka Energi Indonesia have closed on an agreement to develop 8,300 acres of Fasken area Eagle Ford Shale properties owned by Swift in Webb County, TX. Swift sold a 36% full interest in the properties to Saka for $175 million cash, with $125 million (subject to adjustments) paid at closing and $50 million to be paid over time to carry a portion of Swift’s field development costs. Swift’s net proceeds will be used initially to reduce debt and ultimately to fund accelerated development of its Eagle Ford properties. “This arrangement marks the beginning of a strategic partnership to grow production in the Eagle Ford dry gas window of South Texas,” said Swift CEO Terry Swift. Saka is the upstream oil and gas subsidiary of PT Perusahaan Gas Negara (Persero) Tbk (PGN), Indonesia’s largest natural gas transportation and distribution company.

The well count and rig count in the U.S. onshore both increased slightly during the second quarter of 2014. The former was boosted by strong gains in the Permian Basin, Marcellus Shale and Granite Wash formation, while the latter reflected a slight improvement in drilling efficiencies, Baker Hughes Inc. (BHI) said Friday.

More natural gas from energy-rich Texas’ Eagle Ford Shale would travel to Mexico to fuel growing power generation and industrial demand there if another proposed border-crossing pipeline is constructed.

In two separate deals, Denver-based Hawkwood Energy LLC has made its entry into the emerging East Texas Eagle Ford and Woodbine plays, acquiring producing and nonproducing assets in Brazos, Leon, Madison, and Robertson counties, TX.

Texas oil and gas production during April was up from year-ago levels, according to preliminary figures compiled by the Railroad Commission of Texas (RRC).

Sanchez Energy Corp.plans to begin an underwritten public offering of 5 million shares of the company’s common stock, with the proceeds going in part to fund its pending “Catarina” acquisition in the Eagle Ford Shale (seeShale Daily,May 22). Meanwhile,Moody’s Investors Service assigned a B3 rating to Sanchez’s proposal to issue $700 million in unsecured notes due in 2023, the proceeds from which would also be used to finance the $639 million deal with twoRoyal Dutch Shell plcsubsidiaries for Catarina acreage and associated production.

Eagle Ford Shale crude and condensate production in 2020 will rival Alaska’s entire North Slope field at its peak, hitting an estimated 2 million b/d, according to an analysis by Wood Mackenzie Ltd.

Texas preliminary March crude oil production averaged 2.01 million b/d, up from the 1.62 million b/d average of March 2013. Cumulative March production was 62.45 million bbl, up from 50.09 million bbl reported during March 2013, according to the Railroad Commission of Texas (RRC).

Sundance Energy Australia Ltd. is picking up Texas acreage prospective for the Eagle Ford Shale and for the Georgetown Formation and has sold its acreage in the Denver-Julesburg (DJ) Basin in order to refocus capital on core areas, the company said.