Tuesday, September 21, 2010

DeWitt and Gonzales County Eagle Ford Shale Oil Window Big Picture

The big picture is being revealed so clearly in DeWitt and Gonzales Counties that a blind person can the operators are playing out their hand..  Drilling activity, pipeline, and processing infrastructure build out is concentrating along the thick part of the Eagle Ford Shale acreage that runs along both sides of the DeWitt/Gonzales County line. Due to the highly commercial and better economics of this area, it appears that all the operators are collaborating in the early development of the Eagle Ford in this super prime location. Most of the acreage along the trend in DeWitt and Gonzales Counties is 250' to 300' thick, allowing for a more thorough matrix to be completed as a result of upper and lower horizontal wells. Where the shale is thick enough to drill two or more horizontals in layer, it effectively has a multiplier effect on the Estimated Ultimate Recovery of WTI crude oil from those wells. The maps and graphics presented below are from the operators investor presentations and the RRC.

The thickest part of the shale is concentrated along the DeWitt and Gonzales County line.

Even in the 140' thickness 1,000 boe per day of WTI curde oil
Contour along the DeWitt/Gonzales Co. line showing extremely productive 1,000+ boe per day wells
The green line from Cheapside is near the DeWitt and Gonzales County line and is the existing pipeline infrastructure and route of the new Enterprise trunk line.
The purple zone hugging the DeWitt and Gonzales Co. line is by far the most productive volatile oil window holding WTI crude oil.
DeWitt/Gonazles/Lavaca Co. enlarged map showing approximate oil to wet gas transition zone

Sunday, September 19, 2010

DO YOUR EAGLE FORD HOMEWORK DeWitt/Gonzales Landowners

Reliance Industries to pay Chesapeake $14,000 per acre for Eagle Ford acreage

     The articles below are merely a sampling of some of the information you need to know to be a informed landowner. When negotiating an oil and gas lease, the oil company is not your friend, they are a tenacious competitor. If you are not armed with knowledge they will exploit you. Your lawyer is not your negotiator, you are. Your lawyer is merely someone who looks out for your legal rights, they are not skilled negotiators. Running to a lawyer every time you get a request to do a seismic survey, sell water, or receive a oil and gas lease offer will land you in the poor house. The oil company intentionally tries to make things complicated, they use bait and switch, delay, deception and many other tactics to get you to sign a lease that is favorable to them. They will try to wear you down. Get informed and be a educated lease negotiator. Quite simply put,  you must know how the oil company operates and know yourself. 

     Lease bonuses and royalties are going up very fast since the enormous economic potential of the Eagle Ford is prominent public information for everyone to see now. The genie is out of the bottle. In a large part of the play the shale is 300' thick, up to three times what it is in other commercial areas of the Eagle Ford trend. The thick part of the Eagle Ford oil window holds enormous quantities of high value WTI (West Texas Intermediate light sweet) crude oil. The overpressure oil window of the DeWitt/Gonzales County corridor is the most highly sought acreage in the entire Eagle Ford trend.

      Knowledge is power! Learn the value of your land and how much lease bonus the operator should be paying you. Don't accept anything less than 27 1/2% royalty. Know and understand how the surface of your land will be used. Be a good negotiator. 




Oil Play:Surface versus mineral        



Minerals, Surface Rights, and Royalty Payments


"A fool and his land were lucky enough to get together in the first place."

"There's a sucker born every second"

Wednesday, September 15, 2010

Eagle Ford Maps

The oil window acreage of DeWitt County and the surrounding area continues to astound operators and investors alike with exceptional oil and gas potential and production. Across the trend, the Eagle Ford consistently has mudlog shows greater than 1,000 units that verify the extremely high quality of the rock encountered on wire line logs and in the rotary sidewall cores. That translates into exceptional oil producing wells all along the trend.

The Antares Energy presentations can be found at:

Tuesday, September 7, 2010

Eagle Ford Operators Show They Have No Shame!

    During the past few months ALL of the local oil and gas operators have publicly bragged about how cheap they have leased their large Eagle Ford acreage positions. It's one thing to sneak around on the sly and lease up valuable oil and gas property for a mere pittance of it's true value, but to then gloat about it in such a public way is shameful. Petrohawk, EOG, Chesapeake, Pioneer, and all the other Eagle Ford operators have all boasted about their business acumen in getting high value oil and gas leases for a fraction of their true value. Operator behavior today is demeaning and insulting to the landowners who were gullible and easily persuaded to sign oil and gas leases early. Oil company greed knows no bounds. Today we find the oil companies flipping some of their less desirable acreage for fabulous fortunes while at the same time they bemoan paying an honest price to the landowner today for new leases. The oil company tries to hide the fact that for years it has paid, and is paying today, the informed landowner 27 1/2% royalty or more. The oil company is ruthless when dealing with uninformed landowners.

     Thanks in great part to all the public information now available on the internet, the tables have been turned on the big oil company. Now, those landowners who were patient, those landowners who were wise to wait to see how the Eagle Ford play would evolve, now sit in the enviable catbird seat. Just three years ago, during the land rush of the Barnett and Haynesville shale, operators bid up acreage there to $30,000 per acre for land that was far less valuable than any Eagle Ford acreage is today. Eagle Ford acreage in the oil window and the NGL part of the trend is today far more valuable than any so called sweet spot of the Haynesville or Barnett was even back then. Even with crude oil prices today trading at roughly half what they were three years ago, the liquids window of the Eagle Ford is far more valuable than any other shale, then or now, bar none.

      I honestly don't know how high lease bonuses will ultimately go, but one thing is certain, prices and royalty are going higher, much, much higher, and in a hurry. The economics of the Eagle Ford are so strong that it could easily supports lease bonuses of $60,000 per acre and still remain profitable for the oil company to drill and operate. A fabulous fortune, a once in a lifetime fortune, lies under the ground in the oil window of the Eagle Ford. DON'T SQUANDER YOUR FORTUNE!

 The Texas Railroad Commission very recently reported that Burlington Resources (ConocoPhillips) - Maraldo A403 Unit Well #1 is producing 2,208 barrels of oil/condensate per day and 5.813 million cubic feet of gas on a reduced flow 20/64 choke. If you do the rough math of $70 a barrel crude oil, that comes out to $154,000 per day for the oil alone. Add the 5.813 mmcfd of gas and you have one whale of a daily cash cow payday for the oil company. All the wells coming in along the over pressure oil window in DeWitt should produce close to the Maraldo.

Wednesday, September 1, 2010

EOG To Get New Eagle Ford Pipeline

Enterprise Products Partners LP, signed an agreement with EOG Resources Inc. to build a new pipeline to carry ever increasing oil production from the South Texas Eagle Ford shale formation, including DeWitt County.

The stacked pipe for the pipeline in the picture was taken on Saturday September 5th, 2010 on the hill about 4 miles North of Hochheim on US 183.

Enterprise will transport EOG oil on the 140-mile pipeline. Natural-gas processing services for EOG are also included.

EOG will more than double drilling in the Eagle Ford this year. The new pipeline, to be completed in early 2012 with a capacity for 350,000 barrels of oil a day. Enterprise is in talks with other potential shippers.

“The South Texas Eagle Ford has the potential to be one of the largest crude-oil discoveries in the United States including the deep water Gulf of Mexico, in the last 40 years,” Mark G. Papa, chief executive officer of Houston-based EOG, said in the statement.

For details about this new pipeline, go to

November 15th, 2010
Pipelines in Eagle Ford Shale Looking to Grow With Producers

There is a story today on Bloomberg News about Koch Pipeline Co. seeking approval for a 16-inch crude oil pipeline with a 120,000 barrels of oil per day capacity. The pipeline will run from the Eagle Ford to a refinery at Corpus Christi, Texas. Bloomberg says a Koch representaive commented that the pipeline could be increased to 200,000 barrels of crude oil per day.

Kinder Morgan and Eagle Ford Gathering run Copano Pipeline is also mentioned that their 30 inch pipeline will connect to Chesapeake Energy.