The Landowner Advocate
Eagle Ford Shale Daily Newspaper
Mike Green
Unforeseen and unexpected interest and options have arisen which have caused a delay in the offering of tracts for sale. I hope to have these issues resolved relatively soon. I apologize for the delay in offering tracts for sale. Tracts should be identified and priced as soon as possible barring any prior sale.
May 8. 2012
Live Water Guadalupe River Frontage Land For Sale
Parcels of the 70.15 acre tract of land fronting on both US 183 and the Guadalupe River will soon be offered for sale. Check back here for details about property offerings very soon.
Live Water Property on the Guadalupe River with a buildable home site is extremely rare to find in South Texas. This property has both home and recreational uses for boating, swimming, fishing, and scenic enjoyment. Owning a live water tract is the ultimate status symbol.
March 1, 2013
Aurora Oil & Gas 40 acre spacing
http://aut2.live.irmau.com/IRM/Company/ShowPage.aspx/PDFs/2470-50251048/2012AnnualandQuarter4ResultsPresentation
November 15, 2012
Hochheim Area
November 14, 2012
Witte Unit near Hochheim
November 11, 2012
Abraxas Petroleum sells 1/4 interest in 544 acres for $20 mm ($20mm/ 544 = $37,764 x 4 =$147,058 per acre) Not bad!
Abraxas Selling DeWitt Eagle Ford Acreage For $147,058 per acre
Abraxas Petroleum today announced an agreement to sell the Company's 25% working interest at the Nordheim Project in the Eagle Ford shale to a large institutional buyer for approximately $20mm. The sale is for 544 net acres in DeWitt County, Texas. The acreage has approximately 64 boepd (56% gas; 26% NGLs; 26% oil) of net production. Abraxas will retain the rights to its Edwards production, reserves and upside across both its Nordheim and Wagner lease blocks.
http://www.4-traders.com/ABRAXAS-PETROLEUM-CORP-3933539/news/Abraxas-Petroleum-Corp-Abraxas-Provides-Divestiture-Financial-and-Operational-Update-15502448/
November 7, 2012 2012
Texon Petroleum
There are several small Australian oil companies who got in early in developing high-grade Eagle Ford acreage in McMullen County. Texon Petroleum is one of those Australian operators with a small footprint but owning excellent assets in the Eagle Ford over pressure oil window in McMullen County. Texon released an update on their operations today along with an interesting map showing wells in their lease being drilled on three different azimuths.
http://media.abnnewswire.net/media/en/docs/ASX-TXN-705142.pdf
November 6, 2012
Burrow 2H 6,275 barrels per day near Hochheim (very near me)
"One recent Gonzales County well, the Burrow 2-H in which we hold a 100 percent working interest, achieved a 24-hour rate of 6,275 barrels of oil equivalent per day (boed), of which 4,646 barrels were oil and condensate." http://www.marathonoil.com/News/Press_Releases/Press_Release/?id=718857
November 4, 2012
Operators in South Texas continue to exploit their acreage position targeting the liquids-rich Eagle Ford Shale, Pearsall Shale, Austin Chalk, and Buda Limestone. We are learning a great deal from the data being provided on their drilling and production update's. We are still in the early stages of seeing the entire shale basin being developed in multiple horizons.
November 3, 2012 The Future Is Here:
Continuous Motion Drilling Rigs full animation
http://vimeo.com/41759453
October 31, 2012
Eagle Ford Is The Top Play
The Bakken and the Eagle Ford are unquestionably the two most prolific tight oil shale plays. The Eagle Ford offers operators vastly superior return on investment due to a number of factors. The advantage of proximity to refineries and pipeline transportation is well know and understood. Less understood is the much higher well expenses incurred to drill and produce from the Williston Basin. Due to the extremes of weather, very cold winters with attendant long periods of below freezing tempertature in northern climes productivity is greatly diminished. Spring brings flooding, making rig moves and pipeline and other infrastructure build-out difficult and uncertain. The lack of pipeline infrasructure adds considerable added expense to transport Bakken crude oil to the LLS market. Shipping by rail is much more expensive than shipping by pipeline. At the end of the day operators receive substantially less than the posted WTI price for Bakken crude. In contrast Eagle Ford crude is priced at a premium. Add it all up and Eagle Ford comes out on top head and shoulders. The economics of Eagle Ford crude make it absolutely the best play in the world.
October 27, 2012
October 20, 2012
Eagle Ford Moves To "Oil Factory" Mode
Eagle Ford operators have begun to focus on their high-margin projects while maintaining capital discipline through low leverage. This strategy assures ample liquidity and flexibility. By utilizing hedging to stabilize cash flows operators are able to capitalize on their exceptional long-term assets and thus accelerate growth to enhance their shareholder value.
Operators are accelerating the value of their Eagle Ford premier oily assets while maintaining capital discipline and efficiency. They have successfully de-risk the play and are now driving down cost to expand production.
The DeWItt/Gonzales County line volatile oil window is a true high-grade, top tier, premier oil field that is the envy of the world oil industry. There is quite simply no better place in the world, bar none, not even the Middle East, to drill for oil. The over pressure volatile oil window is quite simply par excellance!
September 17, 2012
DeWitt/Gonzales County Line "The Perfect Storm of Coincident Factors For Great EF Wells"
The EagleFordShaleForum had an interesting comment posted yesterday from an industry insider who explained why the area around Hochheim in DeWitt County in the over pressure volatile oil window is so mind boggling valuable. Below is the comment:.
"First comment is on hooking wells up - what you references as the "record time" hook up to sales will be happening much more often in many areas as new wells are drilled in areas where pipelines, gathering systems and related infrastructure is already in place. So royalty owners can expect to be seeing revenues a little quicker than on the initial wells in any one area.
The area you describe along the Dewitt / Gonzales County line (and into Karnes Co along the same line down thru the Handy well area and perhaps as far SW as Kenedy) may very well be the "perfect storm" of coincident factors for great EF wells. Reservoir thickness, formation pressure, ideal GOR's with the right thermal situation as to liquids, ideal geomechanics, etc. all coming together to make for great wells.
Of course, we won't have a solid idea on where the BEST areas are until you see some production history. Great IP's do not automatically translate into great EUR wells.
I am still not certain about the NE extension into Fayette and other counties. There are definintely some changes in the EF section stratigraphically as you move in that direction. Plus I am concerned that even high IP wells may be negatively impacted by thinner EF sweet spots as to being able to support high EUR's (due to lack of overall hydrocarbons in place)
September 16, 2012
Burrow Unit off of US 183 has a lot of acreage outside of drainage rectangle too.
The Burlington Resources W-1 plat of the Justiss C Unit near Hochheim has several acres in it along the northeast corner near the DeWitt/Gonzales line that looks like Eagle Ford drainage will not be possible. The red circle indicates that acreage.
September 15, 2012
Matador Resources has a new presentation showing the multiple pay zones in the Eagle Ford footprint.
http://api.ning.com/files/r8KjV8XYp53fzHYuuZjOtWXaO3cfmp1gOWxXHSHGy4aexopMUKuFmrwlI6PPJb7cWyLe6IRtzl9q61g*6Xl6lGBVrJVKrcfD/120827_Matador_Resources_Co_August_2012_Investor_Presentation1.pdf
September 10, 2012
Pressure continues to mount on operators with dry gas acreage as evidenced by the recent decision by EOG Resources to put all their gas acreage in the "vault" until better prices materialize. Dry gas will stay in the vault for as long as takes, even decades if necessary. Mark Papa went so far as to say EOG would not be drilling any new dry gas wells and is withholding their HBP acreage from sales. Papa expressed growing concern that the NGL market too was falling so quickly that EOG is now required to shift CAPEX spending from Barnett, Haynesville and Permian to the Eagle Ford due to the extreme profitability of the volatile oil window along the DeWitt/Gonzales county line. The growing importance of the Eagle Ford as the cash cow to fund EOG losing ventures like dry gas and NGL acreage and dubious other ventures like Kitimat are glaringly apparent. Were it not for the extreme economics and profitability of the Eagle Ford operators would be in dire straights. Eagle Ford, and to a lesser extent Bakken, are propping up the E&P sector.
September 8, 2012
During the Barclay's investor conference this week, Mark Papa, the CEO of EOG Resources proclaimed that only the Eagle Ford and Bakken shale plays are substantially economic. The slide below illustrates how important Eagle Ford is today and how it will grow. The return on investment and CAGR for all companies producing high value crude oil from the Eagle Ford will continue to grow in importance. The fair market value for Eagle Ford tracts in the over pressure volatile oil window is mind boggling valuable, far exceeding the $100,000 per acre paid by Aurora Oil & Gas for Karnes County acreage earlier in the year.
Crude oil production
The red is Eagle Ford, blue is Bakken, and the bottom tier represents all the other shale basins, including Barnett, Permian, Mississippian, Utica, Marcellus and the others.
September 3, 2012
Aurora Oil & Gas September Presentation Bullish Eagle Ford
It might be said that Aurora Oil & Gas is uniquely an analog for understanding the oil and NGL window of the Eagle Ford. This Australian company provides us with 20/20 Eagle Ford visibility due it's 100% Eagle Ford assets. Much of Aurora's acreage is on strike with the DeWitt/Gonzales County line in the over pressure volatile oil window. It's important to recall the recent acquisition by Aurora of fellow Australian oil company Eureka Energy working interest for around $100,000 equivalent per acre.
Tens of thousands of more wells will be required to drill and develop the Eagle Ford on 40 acre spacing.
September 1, 2012
Eagle Ford Rig Count Rises Big Time This Week to 271 Active Rigs
The gross number of drilling rigs grew by 6 this week but more importantly the number of rigs drilling for oil increased by 14. This full steam ahead emphasis by operators going after oil is validation of the the extremely lucrative return on investment coming from the oil window. EOG Resources reported several DeWitt County wells in the Baker-Deforest Unit producing ultra high IPs of oil. Monster wells are becoming the norm in the the over pressure volatile oil window along the DeWitt/Gonzales County line.
August 23, 2012
Exerpt from the Motley Fool
Downspacing
Rosetta Resources (NASDAQ: ROSE) has a development program targeting the Eagle Ford Shale at the Gates Ranch project and has been testing drilling wells on a tighter density. The company reported that wells drilled on spacing ranging from 50 to 65 acres, or 425 to 625 feet apart, have performed well and without interference. Rosetta Resources has now adopted 55 acre spacing in the entire Gates Ranch area and expects the EUR on these wells to be 1.67 million BOE per well.
Although the Eagle Ford Shale is battling the Bakken for the right to be called the best unconventional oil and gas resource play in the United States, some operators have already made their decision and have focused large amounts of capital on this domestic crown jewel.
http://beta.fool.com/shaleplays/2012/08/21/what-we-learned-about-eagle-ford-shale-during-seco/9685/?ticker=CHK&source=eogyholnk0000001
At $100 oil the 1.67 million BOE per well translates to $167,000,000 per 55 acres. If you owned 55 acres and you receive 25% royalty that would amount to $41,750,000 due you over the life of the well. With other horizons like the Austin Chalk, Pearsall, Olmos and Buda you quickly see why Eagle Ford footprint acreage is worth far north of the recent deals for $100,000 per acre.
August 18, 2012
North America Shale Basins
August 15, 2012
What A Difference A Year Makes
Volatile Oil Window See's Explosive Growth
August 14, 2012
Aurora Oil and Gas announces testing 40 acre well spacing
Readers can find the full Aurora Oil and Gas August 2012 Presentation at http://aut.live.irmau.com/IRM/Company/ShowPage.aspx/PDFs/2170-75967836/InvestorPresentationAugust2012
August 12, 2012
Rosetta Resources Testing 50 acre
spacing
Rosetta has been evaluating
http://ir.rosettaresources.com/releasedetail.cfm?ReleaseID=699001
August 7, 2012
KKR paying $25,000 per acre for 33% Working Interest in Black Oil window Eagle Ford acreage
http://www.ogfj.com/articles/2012/07/eagle-ford-shale-jv-with-kkr.html
August 3, 2012
EOG drills "MONSTER" volatile oil wells near Hochheim
Boothe wells IP near 6,000 barrels per day of oil and condensate
EOG has captured the finest inventory of onshore crude oil assets in the entire United States
August 2, 2012
EOG Hits Gusher near Hochheim
Boothe 10H
4,820 boe oil, 972 barrels per day condensate & 2.9 Mmcfd natural gas
“ The past cannot be changed, the future is still in your power. ”
— Hugh White
August 1, 2012
Marathon Oil: The case for 40 acre spacing
July 24, 2012
Aurora Oil & Gas Drilling on 350' Spacing in Volatile Oil Window "The Q3 drilling schedule includes finalising the last of the wells contributing to the initial spacing pilot program. In phase 1 of this program, 11 horizontal wells will be drilled to investigate closer positioning of horizontal wellbores. These wells will target a separation of 500 ft in the gascondensate window and 350 ft in the volatile oil window." The volatille oil window approximated both sides along the DeWitt/Gonzales county line.
July 23, 2012
China National Oil Company Makes Big Purchase of North America Oil & Gas Assets
The Chineese government oil company Cnooc agreed today to purchase Canadian oil company Nexen for $15.1 Billion making it the biggest oil and gas asset purchase in a long line of foreign oil companies buying oil and gas assets in north America.
July 20, 2012
Baker Hughes Interactive Rig Count
If you want to know where all the drilling rigs are in the Eagle Ford there is a really cool interactive map tool provided by Baker Hughes at:
July 19. 2012
Pearsall News:
http://seekingalpha.com/article/730651-with-the-cabot-oil-gas-osaka-joint-venture-pearsall-shale-joins-the-horizontal-oil-raceJuly 9, 2012
Important New Eagle Ford/Pearsall/Olmos/Buda/Chalk Acreage Analysis Report Here Soon: Stay Tuned To This Blog For Details
July 3, 2012
Karnes County Acreage: Aurora Oil & Gas to complete acquisition of Eureka Energy AMI
June 29, 2012
Hochheim Area To See Major Drilling Ramp-Up
Informed sources are saying the Hochheim area in DeWitt County is about to experience a significant spike in drilling activity. Recently completed wells are showing incredible economics compelling operators to fast-track field development.
June 28, 2012
Exxon CEO Tillerson say's "We are losing our shirts on dry gas"
The CEO of Exxon confessed this morning that his company is selling dry gas for less than the cost of production. That is the reason why the liquids window of the Eagle Ford will continue to see more drilling and production activity ramp up and ever higher prices paid for good liquids window lease acreage. It's a no brainer, the Eagle Ford liquids window is more economic than any other resource play in the world. It's where the money is.
June 26, 2012
Awful Conspiracy: Big Oil Conspires to Defraud Landowners
emails show extent of conspiracy
The sorted tale of the collusion and conspiracy to defraud landowners is told in detail in today's Reuters report on oil and gas shale land bid rigging. This is a cautionary tale for all landowners in all the shale basins, especially the Eagle Ford. Expect the Eagle Ford to be the next shoe to drop.
http://www.reuters.com/article/2012/06/26/us-encana-land-zaremba-idUSBRE85P0GR20120626
June 25, 2012
Chesapeake and Encana plotted to suppress land prices
Reuters is reporting that under the direction of CEO Aubrey McClendon, Chesapeake Energy Corp. plotted with its top competitor to suppress land prices. This is a huge story with implications for the thousand of Eagle Ford landowners disadvantaged by unethical, unsavory and perhaps illegal leasing activity.
http://www.reuters.com/article/2012/06/25/us-chesapeake-land-deals-idUSBRE85O0EI20120625
June 23, 2012
PREDICTION: Eagle Ford Land Prices To Skyrocket Higher As Result of $14,285 per acre transaction for Pearsall Only
PREDICTION: Eagle Ford Land Prices To Skyrocket Higher As Result of $14,285 per acre transaction for Pearsall Only
All Depths & Horizons To Far Exceed $100,000 per acre
This blog has been 100% accurate in predicting ever higher prices for Eagle Ford acreage for over 3 years now
June 22, 2012
$14,285 per acre paid for Pearsall acreage
$250 Million Pay Day for 35% stake in Pearsall Shale formation below the Eagle Ford Shale formation
Cabot Oil and Gas has agreed to sell a 35% stake in it's Pearsall Shale acreage to Osaka Gas Co for $250 Million. Cabot will retain it' ownership of the Eagle Ford Shale and sis only selling an interest in the horizon below. Deal calls for Osaka to pay for future drilling costs. Drilling to begin in July of this year. Deal comes to equivalent of $14,285 per acre for the Pearsall formation only.
June 19, 2012
Railroad
& Sand Producer Team-Up For Eagle Ford Unit Train and Sand
Facility In San Antonio
Burlington
Northern BNSF Railway adds unit train and frac sand facility in San
Antonio http://eon.businesswire.com/news/eon/20120618005798/en
June 18, 2012
Eagle Ford Operators Seeing Huge Profits From Crude
Well Costs Decline With Pressure Pumping Glut
Gas Drilling Rigs Being Idled In Record Numbers
Eagle Ford operators are seeing significant well cost savings today due to the collapse in the dry gas market idling significant numbers of drilling rigs in the Haynesville, Barnett and other dry gas areas. Slack drilling rig demand coupled with a glut in pressure pumping services is driving down the cost of drilling Eagle Ford wells substantially, making this play by far the most economic in North America. You might say operators have hit the Trifecta, cheap leases, cheap drilling rig expense and cheap hydraulic fracturing costs.
June 14, 2012
Magnum Hunter CEO shares Eagle Ford secrets at Enercom London Conference: says "Shake and Bake" technique of drilling and fracing and then shut-in well allows the bottom hole well pressure to hold continues to frac the formation.
http://www.vcall.com/console/ConsoleFrameset.asp?ID=168715&brand=Vcall&ClickType=&playerID=1&urlID=173658&sessionID=38F851DFB32F4CBA&email=&tck=MHR
June 13, 2012
Aurora Oil & Gas Deal To Acquire Eureka Energy Karnes County Acreage for near $100,000 per acre
ENTERPRISE PIPELINE BEGINS OPERATION
OIL DELIVERIES BEGIN
June 7. 2012
Play
It Again Sam! In Lavaca & Fayette County
Strike
Energy says Eagle Ford is “the world's most prospective
unconventional hydrocarbon play”
Strike Energy is set to spud its first Eagle Ford Shale Project production test
well near Sanchez Energy acreage. These wells haave estimated
ultimate recovery of 350,000 to 550,000 barrels of oil equivalent
(boe) per well and will demonstrate the value of the company's
acreage position. Acreage in Lavaca and Fayette being unrisked adding
significant NAV to Strike holdings.
June 5, 2012
The
following is a word for word quote from the CEO of EOG Resources
today.
"On the Eagle Ford. All I can say on the Eagle Ford is, in my opinion in the business after 40 years, I truly believe it's easily the absolutely best asset in North America today in terms of profitability and of size and we have the very best position in the Eagle Ford. We would not trade this asset for anything else in North America, period, no matter what anybody offered. So it's just that simple, and it just get's better and better and better, And you will see other companies continue to purchase acreage in and around us for ever increasing dollars per acre."
Mark Papa at Citi Global Energy Conference 6/5/2012
you can access the presentation with both audio and slides via the EOG website at
http://www.eogresources.com/investors/investor_pres.html
"On the Eagle Ford. All I can say on the Eagle Ford is, in my opinion in the business after 40 years, I truly believe it's easily the absolutely best asset in North America today in terms of profitability and of size and we have the very best position in the Eagle Ford. We would not trade this asset for anything else in North America, period, no matter what anybody offered. So it's just that simple, and it just get's better and better and better, And you will see other companies continue to purchase acreage in and around us for ever increasing dollars per acre."
Mark Papa at Citi Global Energy Conference 6/5/2012
you can access the presentation with both audio and slides via the EOG website at
http://www.eogresources.com/investors/investor_pres.html
June 3, 2012
Backyard Drilling Rig
With the intense drilling activity in the volatile oil window of the Eagle Ford we are now seeing such tight spacing of wells that drilling rigs can now be found in some landowner's back yards, like this one behind the big house on the hill on US 183 near Hochheim. The nuisance, noise, and total loss of any privacy will hopefully be rewarded down the road with big royalty checks.
June 2, 2012
Where the Eagle Ford Is Going: NUFF SAID!
May 25, 2012
RRC map of wells permitted
May 24, 2012
$65,880 PER ACRE PAID FOR EAGLE FORD LIQUIDS WINDOW ACREAGE
Aurora Oil & Gas completes acquisition of 1,442 Sugarkan Field liquids rich acreage for $65,880 per acre http://tinyurl.com/chrfuju
May
23, 2012
Eagle
Ford Lease Acreage Price Soars
May 22, 2012
Eureka
Energy fights Aurora takeover offer of $87,000 equivalent per acre
In the finest tradition of the oil and
gas industry, bigger operator Aurora O&G is trying to takeover
the 6.25% working interest from smaller operator Eureka Energy in the
lucrative Sugarkane field in Karnes County. The truth is the first
causality of this skirmish but this much we know, that the volatile
oil window is incredibly valuable. The Eureka Energy working interest
goes back to when the company invested with Hilcorp in Eagle Ford
development. Hilcorp later sold it's interest to Marathon Oil for
$25,000 per acre which included a lot of dry gas acreage. Now it
would appear that Eureka has obtained a $50 million line of credit to
continue it's development of the lucrative volatile oil window.
To keep you up to speed on this important story that will shed a lot of light on how to value Eagle Ford oil window acreage, I have linked a few stories below:
May 17, 2012
The Smoking Gun As To Why The Eagle Ford Volatile Oil Window Is Worth $100,000 Per Acre
Aurora Oil & Gas Is A Pure Play Small Australian Company That Offers Landowners In The Volatile Oil Window A Visibility & Near Perfect Comparison. Aurora operates in Karnes County on acreage similar to acreage found along the DeWitt/Gonzales County Line in the overpressure volatile oil window of the Eagle Ford.
AURORA OIL & GAS INVESTOR PRESENTATION MAY 2012
This is a sample of the powerful information contained in the Aurora Oil and Gas presentation. Notice how the wells are planned in cluster formations. This suggests that spacing is going down substantially, perhaps below 40 acre spacing.
May 10, 2012
Eagle Ford: The Biggest US Domestic Oil Field Ever Discovered
Bigger Than East Texas Oilfield, Oil Wells To Rival Spindletop
May 8, 2012
EOG Resources knocks the cover off the ball with 1Q earnings
80% Direct ATROR
May 7, 2012
Eagle Ford Oil Window On Track For $100,000 per acre
Eureka Energy BOD is Rejecting Aurora Oil & Gas’ Offer of $87,245.23 per acre for Eagle Ford oil window acreage
April 13, 2012
"We expect the Eagle Ford to provide vast opportunities for years to come in the region."
April 11, 2012
Near Hochheim, Texas
Playing around with Google Earth allows users the ability to overlay other maps such as this USGS topographic map along with the outlines of various tracts in the area. It's a cool tool.
April 6, 2012
Marathon 40 acre vs 60 acre spacing
Weil_2012_Energy_Conference.pdf
Slide 19
March 25, 2012
Hochheim Area
March 12, 2012
Burrow Unit 2H
My property is sandwiched in between the Burrow Unit and the Meyer Unit
March 10. 2012
Eagle Ford Liquids Acreage Is A Natural Hedge Against Inflation
This past week saw the announcement of a significant investment partnership between Kohlberg, Kravis & Roberts and Chesapeake Energy. The partnership intends to purchase lucrative lease acreage and royalty interest in US shale basins like Eagle Ford. KKR brings to the table their substantial capital and business structuring experience alongside Chesapeake's substantial experience at obtaining lease acreage at low prices. The long view of shale basins like the Eagle Ford is that they contain vast quantities of proven reserves that can be tapped at any time in the future. Buying acreage at today's relative cheap price is a natural hedge against currency debasement and future energy inflation. This strategy is the prime reason I personally have not yet developed or leased my acreage in the Eagle Ford to date. Just the simple act of holding shale acreage may turn out to be the best investment strategy anyone can make.
March 6, 2012
Burrow Unit on US 183 near Hochheim
March 5, 2012
Karnes wells permitted 3/02/2012 with interesting comments
comments:
PLEASE REFER TO ATTACHED PLAT. THE SUBJECT WELL IS BIENT DRILLED ON A 184-ACRE TRACT. APPLICANT HAS APPROXIMATELY 49.22% UNDIVIDED MINERAL INTEREST IN THE TRACT LEASED. THE REMAINING UNDIVIDED MINERAL INTEREST IN STH E184 ACRE TRACT HAS BEEN POOLED BY BURLINGTON INTO ITS NARANJO A AND PROPOSED KORTH SOUTH POOLED UNITS. THE BURLINGTON NARANJO A 1H AND 2H UNIT WELLS CROSS THE 184 ACRE DRILLSITE AT DIAGONAL ANGLES. THE SUBJECT WELL WILL CROSS OVER OR UNDER THESE 2 BURLINGTON WELLS.
comments:
PLEASE REFER TO ATTACHED PLAT. THE SUBJECT WELL IS BEING DRILLED ON A 147.50 ACRE LEGALLY SUBDIVIDED TRACT. APPLICANT HAS APPROXIMATELY 36.393% OF A 50% UNDIVIDED MINERAL INTEREST IN THE 147.5 ACRE TRACT BEING POOLED BY BURLINGTON INTO ITS KORTH SOUTH AND NARANJO A POOLED UNITS. THE BURLINGTON KORTH SOUTH 1H AND NARANJO A 1H UNIT WELLS CROSS THE 147.5 ACRE DRILLSITE AT DIAGONAL ANGLES. THE SUBJECT WELL WILL CROSS UNDER OR OVER THESE 2 BURLINGTON WELLS.
March 3, 2012
DeWitt Oil Window Prospect Available for Farmout
Eagle Ford overpressure volatile oil window 70.15 acre prospect
This small prospect blends powerful near-term cash flow with impactful exploration potential. On lease line with EOG Resources Meyer Unit well producing 3,700+ bopd volatile oil plus NGLs and dry gas. High ground on US 183 that does not flood.
Inquires: Contact Mike Green @ libertadormg@gmail.com
March 2, 2012
100 Acre Eagle Ford Unit:
Meider 100.19 acre lease, Lease Name Funk
Operator: West 17TH Operating Company
Drilling & Developing on small acreage and on a North/South azimuth
Proof positive that even small acreage can be drilled and developed
February 27, 2012
Mark Papa, the CEO of EOG Resources talks about how valuable the Eagle Ford is: Say's $40 a barrel all-in cost to produce volatile oil
EOG profiting to tune of over $70 per barrel of Eagle Ford oil produced
February 26, 2012
The Eagle Ford oil window contains a ocean of high quality volatile oil that will always command a big premium over other grades of crude. The economic potential of EFS acreage is truly mind boggling. Other horizons below the Eagle Ford similarly hold great promise as well. If peak oil if not upon us, it is at least just around the corner. EFS acreage is a container of high quality crude oil that is widely recognized as being the best hedge against future currency debasement.
"Maybe I did well and maybe I led the battle but nobody ever said we were going to win this thing at any point in time. Eternal vigilance is required and there have to be people who step up to the plate, who believe in liberty, and who are willing to fight for it." -- Milton Friedman
February 25, 2012
Texas Supreme Court Weighs In On Eminent Domain
Texas Supreme Court Weighs In On Landowner Water Rights
February 19, 2012
EOG Resources to drill on 65 acre spacing
Tighter Spacing, Higher EURs
EOG announced this past week that the Eagle Ford oil window will require much tighter well spacing to develop. Tighter spacing and a 78% increase in oil reserves to 1,600 Mmboe was the takeaway. Analyst's are hinting that far greater reserves and even tighter 45 acre spacing is on the horizon. Below is a RRC map of permitted Eagle Ford wells around the Hochheim area. The open areas should begin to be drilled soon.
February 14, 2012
Houston oil terminal to grow to handle new CME contract
Eagle Ford Oil To Become New Benchmark Crude Oil Contract
Virtually every day landowners are gaining better visibility how valuable their acreage and crude oil are worth: Good news for price discovery
“Interest in ECHO has grown since CME Group Inc. said it would consider launching a new Gulf Coast crude futures contract late last year”
February 13, 2012
Eagle Ford Pipelines Proliferate Scarring The Land
By far, the most common complaint I hear from landowners is their concern about the heavy handed and unfair manner in which their land is being confiscated for pipelines under the false flag and the guise of eminent domain. Eminent domain is a thin transparent disguise purporting public good to hide the virtual theft of private property. Pipelines exact a heavy burden on the land by reducing the actual overall value of a farm or ranch real estate value by as much as half. In extreme cases it can even reduce the value of property by more than half. The area near a pipeline cannot be built upon. In some cases, where pipelines run through the middle of a property, an entire ranch may be virtually reduced to nothing more than a dark reminder of the Houston Ship Channel. Those living near pipelines often suffer from PTSD like soldiers returning from war with nervous and stress disorders from fears of a catastrophic leak that may contaminate their land, or worse, a horrific fireball explosion. The original pipeline ROW is often the proverbial foot in the door that allows for additional pipelines to be installed at later dates usually into perpetuity. Some Eagle Ford landowners currently suffer from main pipeline corridors running through their property with as many as 6 or more large diameter pipelines in a single right-of-way. As the population grows as anticipated and more electric power has to be generated, the logical place for the location of these unsightly new high voltage main transmission power lines will be placed in pipeline these ROWs creating a visual blight on the land. There is a strong possibility that today's pipeline ROWs will in the future become the equivalent of the Trans Texas Corridor for every public utility imaginable.
If you have a pipeline horror story I want to hear it. Please send me an email at libertadormg@gmail.com
February 12, 2012
Eagle Ford landowners “Bamboozled”
February 11, 2012
Natural gas rig count hits lowest since Oct. 2009
Eagle Ford liquids window smoking red hot
February 10, 2012
GeoSouthern Energy & Blackstone Announce $1.0 billion Credit Facility for the Black Hawk Field in the Eagle Ford
Funds from the credit facility will primarily be used to fund and develop the Company’s 50% working interest in the “Black Hawk” field. The Blackhawk field is a 105,000 gross acre, 50 / 50 joint venture in DeWitt and Karnes Counties, Texas.
February 8, 2012
Chesapeake Energy Settles Suit Over CEO Compensation
What Goes Around, Comes Around
February 4, 2012
February 2, 2012
All men dream, but not equally. Those who dream by night in the dusty recesses of their minds, wake in the day to find that it was vanity: but the dreamers of the day are dangerous men, for they may act on their dreams with open eyes, to make them possible.
January 14, 2011
PBS Special: aired 1/12/2011
Eagle Ford: Opportunity and Challenge in South Texas
January 12, 2011
I'm quite certain everyone reading this blog is aware of the recent stampede by international operators to acquire oil shale acreage. The Chinese, French and Japanese inked deals worth more than $8 billion recently. The price per acre being paid for oil shale seems to have found an average of around $25,000 per acre. This flurry of big deals is proof positive of the extreme economics that oil shale offers. Many analysts continue to predict strong competition among buyers for oil shale for the foreseeable future. Last week's deal by the Japanese commodity trader Marubeni Corp. to purchase a stake in Hunt Oil Co. Eagle Ford shale for $25,000 per acre seems to establish a firm floor in the continuing price discovery journey. Some sweet spot acreage in the overpressure oil window is worth far more than the average price per acre being paid today.
January 9, 2012
Whatever comes out of these gates, we've got a better chance of survival if we work together. Do you understand? If we stay together, we survive.
January 3, 2012
The True Value of Eagle Ford Oil Window Acreage: Aurora Provides Us With The Rosetta Stone with step by step instructions how to value acreage
Aurora provides us with the ultimate guide in which landowners can ascribe the value of acreage in the overpressure oil window of the Eagle Ford. Value is no longer a mystery. The kimono has been lifted and a public market metric is now available to all who need or the desire to know the value of their private property.
December 17, 2011
The Eagle Ford Is Busting Loose At The Seams:
Chenerie Energy announces second proposed terminal at Corpus Christi to ship U.S. Eagle Ford NGLs overseas.
December 15, 2011
$1 Million 12 Stage Frac 3,600' Lateral Well To Be Spud
Terrace Energy Board of Directors Approve Olmos Well (other horizon)
Admittedly this is a re-entry of a existing vertical borehole but it is nonetheless a 3,600' horizontal lateral to be fraced in 12 stages. This announcement gives further price visibility and insight into how expensive, or how cheap as it were, it is to drill and complete horizontal well bores.
December 14, 2011
The steady drum beat of technology continues to improve EUR across the Eagle Ford. Significant increases in the recovery factor of both oil and gas are making wells more and more productive. Drilling and completion technology is rapidly advancing and adding significant value to each and every acre of the Eagle Ford.
Ever evolving, the new enhanced drilling techniques (geosteering in horizontal wells) combined with other new technologies and a better understanding of how best to economically produce hydrocarbons in carbonates have greatly enhanced production from carbonate reservoirs like the Eagle Ford. These new technologies may be expensive but they are all for sale.
December 10, 2011
Will WTI crude price be replaced by new Gulf Coast CME contract?
The existing benchmark for the oil market no longer trades at a optimal delivery point. The CME is looking to Houston as the delivery point for trading a new crude oil contract where liquidity and price discovery would be improved.
December 3, 2011
A wise old owl lived in an oak,
The more he saw the less he spoke.
The less he spoke the more he heard.
Why aren't we all like that old bird.
December 2, 2011
November 29, 2011
Texas Oil and Gas Law Property Rights Primer
Landowner's need to know and understand the law as it relates to landowner rights. Not knowing your rights and obligations can cost you millions of dollars. A very fine overview of oil and gas law is available online at
November 23, 2011
The Eagle Ford is Giant Redux
November 22, 2011
151.11 Acre Unit Adjacent to Panna Maria Church
Murphy Exploration & Production
Lyssy Unit Well 1-H
November 14, 2011
November 13, 2011
The following quote was recently posted on my blog entry Advantages of Drilling Your Own Well.
http://eaglefordinfo.blogspot.com/2011/10/advantages-of-drilling-your-own-well.html
http://eaglefordinfo.blogspot.com/2011/10/advantages-of-drilling-your-own-well.html
Anonymous said...
“First they ignore you, then they laugh at you, then they fight you, then you win.”
November 12, 2011
Yoakum Channel was a ancient Grand Canyon near Hochheim
If you have any interest in the geology of the Eagle Ford in the Hochheim area you owe it to yourself to read Texas's Grand Canyon of the Eocene by Paul Britt of the Houston Geologic Society at http://www.hgs.org/en/art/946/ It turns out there really was a deep canyon the like's of the Grand Canyon in Arizona that cut generally along and conforming to the present day Guadalupe River channel near Hochheim.
November 10. 2011
Obama Administration May Delay Keystone XL Project
The controversial Keystone XL oil pipeline project is slated to be put on hold until after the 2012 presidential election. If this pipeline is not built, the Canadian oil sands will be shipped by rail and barge to Texas refineries to be blended with Eagle Ford volatile oil.
November 8, 2011
Oil Executive Admits That Military-Style 'Psy Ops' Being Used
There are multiple news stories published today from numerous respected news agencies that document the use by oil and gas operators of military psychological operations against their adversaries. Who didn't know this already?
Read it for yourself!
November 6, 2011
BULLS EYE
November 4, 2011
EOG Resources Announces 3,000+ Barrels Per Day Overpressure Volatile Oil Wells Along Gonzales-DeWitt County Line
Crude Oil and Liquids Activity
“Across its dominant acreage position in the South Texas Eagle Ford crude oil window, EOG's 2011 improved completion techniques and cost optimization practices continue to drive operational gains and enhanced well production results. Reflecting this combination, EOG has posted its best wells to date in the South Texas Eagle Ford. In Gonzales County, the northeastern-most part of EOG's acreage, the Mitchell Unit #1H and #2H began initial production at peak rates of 2,821 and 3,090 barrels of crude oil per day (Bopd) with 2.8 and 2.9 million cubic feet per day (MMcfd) of rich natural gas, respectively. The Meyer Unit #1H, #2H and #6H started sales at peak crude oil rates of 2,372, 1,600 and 2,918 Bopd, respectively, and produced 1.8, 2.2 and 2.7 MMcfd of associated rich natural gas, respectively. The Kerner Carson Unit #1H, #2H, #4H, #6H, #8H and #10H wells were turned to sales at crude oil production rates ranging from 1,580 to 2,239 Bopd with 1.2 to 1.9 MMcfd of rich natural gas. EOG has 100 percent working interest in these Gonzales County wells.”
November 1, 2011
Eagle Ford Operators Creating Huge Drilling & Production Units: Drilling A Single Well to HBP (Hold by production)
Case in point, the EOG Resources Guadalupe Unit 1,000+ acres. Eagle Ford is a decades long resource play. Operators are planning large units that will probably take 30 to 40 years to fully drill and develop.
October 28, 2011
DUG EAGLE FORD Conference
The DUG Eagle Ford conference, held in San Antonio recently, is the premier Eagle Ford event that brings together EFS luminaries who present their information to the attendees. It was my pleasure to attend and to meet the Honorable Robert M Gates, the former head of CIA and US Defense Secretary until recently.
October 25, 2011
Tax Advantages of Drilling Your Own Eagle Ford Oil Well
October 23, 2011
El Paso Acreage In Eagle Ford Up For Sale
This past week saw Kinder Morgan announce plans to purchase El Paso and sell off it's significant Eagle Ford acreage assets in South Texas. This acquisition should result in another quantum leap higher in EFS acreage valuations. Acreage inflation has seen a relentless escalation in the price per acre being paid. El Paso currently has three drilling rigs working in the Eagle Ford Shale. The company has drilled 52 wells and has announced that it expects strong growth in production, in the second half of 2011. The recent prediction at DUG Conference of per acre prices for EFS acreage of $50,000, $75,000 and higher for volatile oil window acreage is firmly on track.
Jeffries chart of Eagle Ford deals
October 22, 2011
Earthquake Caused by Hydraulic Fracturing?
Whether or not the rare 4.8 magnitude earthquake this past Thursday near Karnes City, Texas was directly related to hydraulic fracturing is unknown at this time. The facts we know, according to the USGS, are that it was centered approximately two miles deep in a zone of concentrated Eagle Ford drilling and fracturing activity. One theory that has been advanced is that virtual simultaneous fracturing of multiple wells, which “lights up" the formation increasing production, might be a contributing factor.
October 19, 2011
I continue to work on my comprehensive report about what I learned at the DUG Conference last week. There was so much rich data and information presented there that it will take time for me to condense it all into a coherent report. Understanding all facets of the Eagle Ford, the geology, technology, legal, logistics and economics is key to understanding it's great value.
The big comment at the DUG Conference for me was that we will see Eagle Ford acreage sell for multiples of the $25,000 per acre paid by Marathon for Hilcorp acreage. That comment was made by Michael Hall, Director and Senior E&P Analyst at Wells Fargo Securities during his presentation on the history of Eagle Ford transactions.
Jeffries & Company, Inc. provided the following slide:
October 17, 2011
The DUG Conference this past week in San Antonio was a stunning success. For anyone with the burning desire to learn about virtually all aspects of the Eagle Ford, the DUG Conference was Mecca. Speaker, after noteworthy speaker, rose to speak of the great oil and gas treasure that Eagle Ford is. Analysts promised more big deals are on the horizon. Deals that will be done establishing yet even higher acreage valuation benchmarks. Multiples of the $25,000 paid by Marathon for Hilcorp acreage recently, which would mean prices of $50,000, $75,000 or higher per acre. One speaker proclaimed that additional consolidation would occur with big international operators buying out and buying in large acreage positions. It was also noted that we will begin to see the entry of small independent single project operators. Something for everyone it would appear, the Eagle Ford has opportunities galore.
Examining the Current Abuse of the Doctrine of Eminent Domain
http://www.lurj.org/article.php/vol4n1/domain.xml
October 13, 2011
DUG Conference in San Antonio was a tremendous success with over 3,500 Eagle Ford attendees. I will be reporting on what I learned while at the conference in the next few days. In brief, the overarching DUG theme I learned is that Eagle Ford is the best shale play in the USA and that lease acreage prices will be going up by multiples of the $25,000 per acre Marathon deal to acquire Hilcorp. We ain't seen nothing yet. Stay tuned, I will be writing much more about the conference in the coming days.
October 13, 2011
DUG Conference in San Antonio was a tremendous success with over 3,500 Eagle Ford attendees. I will be reporting on what I learned while at the conference in the next few days. In brief, the overarching DUG theme I learned is that Eagle Ford is the best shale play in the USA and that lease acreage prices will be going up by multiples of the $25,000 per acre Marathon deal to acquire Hilcorp. We ain't seen nothing yet. Stay tuned, I will be writing much more about the conference in the coming days.
October 9, 2011
I will be attending the DUG Conference in San Antonio this week. I will be live blogging important Eagle Ford news on my Twitter feed @eaglefordnews
The DUG Conference is the premier Eagle Ford event to learn about what is going on, bar none.
October 7, 2011
Eagle Ford Volatile Oil Being Sold Into LLS Market
Huge Premium Being Paid for Light Louisiana Sweet Crude Oil Spot Price
Trading over $115 per barrel today. “Light Louisiana Sweet is traded in pipeline lots of 1,000 to 5,000 barrels a day for delivery between the 25th of one month and the 25th of the next month. These prices are for physical shipments. API gravity: 37 deg Sulfur content: 0.3 % wt Barrels per ton: 7.506 Pour point: -25.0 deg F Loading port: St. James, La.” Reuters
In a continuing effort to help landowners understand why Eagle Ford oil window is so incredibly valuable, I direct your attention to two Reuters articles which explain how Eagle Ford volatile oil is trading at over $115 per barrel today. That's the reason for the breakneck speed build out of pipelines and rail yards to handle Eagle Ford oil today.
October 6, 2011
Oil Company CEO Drinks $10,000 Bottle of Wine Celebrating His “Army of Landmen” Conquest Over Eagle Ford Landowners
Forbes has a very interesting interview out today with former landman and current CEO and Co-founder of Chesapeake Energy, Aubrey McClendon. You need to read this article, and if you are anything like me, you will feel utter disgust at the greed of Mr. McClendon with his sweetheart deal where he get's 2 1/2% interest in all wells drilled by Cheasapeake. That fact, and the fact that McClendon wines and dines the reporter with a $10,000 bottle of 1982 Lafite Rothschild and then summons a helicopter to showboat the reporter around his personal empire built on the acreage acquired from landowners at below market prices. Some say at prices tantamount to theft. McClendon's personal profligate ways and excesses at the expense of landowners and stockholders makes him the hands down winner of poster boy for the famous Gordon Gecko “Greed is Good” remark. Apparently, Eagle Ford operators are not content with merely conquering landowners, they have to gloat about it. Read the article yourself at:
October 5, 2011
Eagle Ford pipeline operational
(Reuters) - Texas-based Nustar Energy said on Tuesday its eight-inch pipeline that will transport Eagle Ford crude and condensates to Valero's Corpus Christi refinery went online on Sept. 21.
October 4, 2011
Technology Advances At Heart Of Eagle Ford Miracle
http://www.mywesttexas.com/business/oil/article_92cbad16-bebb-58a7-8cd2-ade781ad1abb.html
October 3, 2011
Aurora Oil & Gas Announces Ambitious 2012 Karnes County Eagle Ford Oil Window Drilling Program
The relatively small Australian Eagle Ford operator Aurora Oil & Gas is proving up the true value of Eagle Ford oil window acreage today through it's extremely successful drilling program in it's Sugarkane Field development in Karnes County. By examining the success a small company like Aurora is having in the Eagle Ford, it gives landowners unprecedented visibility in determining the true value of EFS overpressure oil window acreage. The company announced today a ambitious and expedited drilling program for it's relative small acreage position in Karnes County. Big E&P companies with a mix of operations are much more difficult to understand. This small company in contrast is a treasure trove of drilling data to mine. By examining this small company you get a clear understanding of what overpressure oil window acreage will yield.
“About Aurora
Aurora is an Australian and Toronto listed oil and gas company active exclusively in the over pressured liquids rich region of the Eagle Ford Shale in Texas, United States. The Company is engaged in the development and production of oil, condensate and natural gas in Karnes, Live Oak and Atascosa counties in South Texas. Aurora participates in over 76,600 highly contiguous gross acres in the heart of the trend, including over 16,230 net acres within the liquids rich zones of the Eagle Ford. Aurora is funded for and expects to participate in approximately 69 new development wells during 2011.”
Take a look at this announcement Aurora made today.
October 2, 2011
Eagle Ford Problems: Roads Being Damaged, Eminent Domain Being Used To Confiscate Private Property, Housing Shortage
Landowners and taxpayers will find the story in the Houston Chronicle of particular interest.
October 1, 2011
Ramp Up In Frac HP Continues Unabated
Platinum registers $300 Million offering for new equipment.
http://finance.yahoo.com/news/Platinum-Energy-Solutions-apf-2324190146.html?x=0
September 30, 2011
German Public Radio Does In-Depth Eagle Ford Story
Neuer Ölboom in Texas - Dank "Fracking"
In above picture foreign correspondent Sabine Mueller interviews Mike Green for a important Eagle Ford story that aired in Germany recently. There is a great deal of both national and international interest in what is happening in our back yard. Since beginning my blog a year and half ago, I personally have been interviewed for important stories by the Wall Street Journal, Financial Times Deutschland, Swiss Public Radio and recently German Public Radio.
A short version of the program that was aired on German radio can be heard at:
http://www.tagesschau.de/multimedia/audio/audio75600.html
http://www.tagesschau.de/multimedia/audio/audio75600.html
September 27, 2011
Huge Quantities of Natural Gas Being Flared
100 Million Cubic Feet Of Gas Wasted Daily
Enough gas to fuel 500,000 homes a day is being wasted and flaring is contributing as much CO2 to the atmosphere as 384,000 automobiles.
September 26, 2011
The Little Engine That Could: Aurora Oil & Gas to get $300 Million
The small Australian operator Aurora Oil & Gas, operating in Karnes County with a relative small acreage position has just announced a $300 million loan package to develop their acreage. Their Sugarcane high-grade oil window acreage has exceptional and outstanding producing oil wells. This little company has just announced that it has received a $300,000,000 borrowing base from a number of leading lending institutions. What is remarkable is the size of the loan package compared to just how small this pure play Eagle Ford oil window operator is. This bodes enormously well for those owning the minerals to acreage in the oil window. "I think I can, I think I can" overcomes a seemingly impossible task.
September 23, 2011
Royal Dutch Shell to Acquire to Major Eagle Ford Position
Rumor abounds that Shell may acquire a independent Eagle Ford producer.
http://www.emoneydaily.com/royal-dutch-shell-plc-lonrdsa-to-look-for-tight-oil/69818688/
Marathon Oil To Grow Eagle Ford 2016 Production to 100,000 Barrels of Oil Per Day
http://www.xe.com/news/2011/09/22/2173049.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art3
September 22, 2011
Acute Housing Shortage In Eagle Ford
Thousands of new flush workers moving in creating problems for the poor.
http://www.mysanantonio.com/news/local_news/article/Eagle-Ford-boom-jacks-rents-in-South-Texas-2182244.php#page-1
September 20, 2011
Magnum-Hunter Announces 2,044 boepd Well
-- The Oryx Hunter #1H which was drilled to a measured depth of 16,955 feet (horizontal lateral length of 6,687 feet), fraced with 21 stages and placed on production September 18, 2011. The initial flowing production rate was 2,044 Boepd (1,944 Bopd, 600 Mcf & 0 Water) on a 16/64" choke with 1,650 psi FCP. -- The Sable Hunter #1H was drilled to a measured depth of 15,728 feet (horizontal lateral length of 5,067 feet) fraced with 15 stages in early September and has posted a 24-hour IP rate of 1,017 Boepd (920 Bpds 581 Mcf & 0 Water) on a 16/64" choke with 1,900 psi FCP. This well went on production September 12, 2011.
http://www.marketwatch.com/story/magnum-hunter-resources-provides-eagle-ford-shale-operations-update-2011-09-20Rumor abounds that Shell may acquire a independent Eagle Ford producer.
http://www.emoneydaily.com/royal-dutch-shell-plc-lonrdsa-to-look-for-tight-oil/69818688/
Marathon Oil To Grow Eagle Ford 2016 Production to 100,000 Barrels of Oil Per Day
http://www.xe.com/news/2011/09/22/2173049.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art3
September 22, 2011
Acute Housing Shortage In Eagle Ford
Thousands of new flush workers moving in creating problems for the poor.
http://www.mysanantonio.com/news/local_news/article/Eagle-Ford-boom-jacks-rents-in-South-Texas-2182244.php#page-1
September 20, 2011
Magnum-Hunter Announces 2,044 boepd Well
-- The Oryx Hunter #1H which was drilled to a measured depth of 16,955 feet (horizontal lateral length of 6,687 feet), fraced with 21 stages and placed on production September 18, 2011. The initial flowing production rate was 2,044 Boepd (1,944 Bopd, 600 Mcf & 0 Water) on a 16/64" choke with 1,650 psi FCP. -- The Sable Hunter #1H was drilled to a measured depth of 15,728 feet (horizontal lateral length of 5,067 feet) fraced with 15 stages in early September and has posted a 24-hour IP rate of 1,017 Boepd (920 Bpds 581 Mcf & 0 Water) on a 16/64" choke with 1,900 psi FCP. This well went on production September 12, 2011.
September, 2011
DeWitt County Lawsuits Dispute Mineral Ownership
Twisted Tale how Polish Immigrant landowners duped
The Fort Worth Star-Telegram is reporting on lawsuits that have been filed recently alleging Eagle Ford Shale land in DeWitt and Karnes Counties was improperly leased/sold. Orca, Petrohawk, Chase and others mentioned in lawsuits. Suit alleges that land was originally acquired by duping local illiterate Polish immigrants back in the 1920's. This complicated story can be read at:
September 13, 2011
Texon Latest Karnes EFS Well 1,786 Barrel per Day
“On 31st August, Texon announced that its third Eagle Ford well (Tyler Ranch EFS #2H) had flowed at the rates of 1,488 bopd and 700 mcfgpd (combined 1,605 boepd (6)) at a pressure of 3,000 psi through a 16/64” choke.
The well has been choked back, which typically results in a reduction in production, however over the past 24 hours on a reduced 9/64” choke at and a pressure of 3,700 psi, the well has flowed at a rate of 1,786 bopd with 322 mcfgpd – an overall rate of 1,840 boepd.”
September 12, 2011
Crimson Encounters Eagle Ford Well Problems: Still Happy
Only 3,200 foot lateral of 5,800 foot borehole producing
Crimson drilled and completed a well with a 20 stage frac design in June. During flowback and testing it was determined water was entering the borehole. Logs indicated the water was entering between stage 9 and 10. The problem was isolated by plugging the well between stage 9 and 10. The well is now producing 418 boepd at 397 psi on an equivalent 3,200 foot lateral. The company is pleased with the production from approximately half the drilled lateral.
September 11, 2011
Eagle Ford Acreage Is Zero Risk To Operators
As Mark Papa of EOG Resources so eloquently put it recently, there are no parallels to the 100% success rate for oil wells in the Eagle Ford. Simply put, all acreage is highly productive acreage that has PUD status, proved undeveloped acreage, that is a know quantity and holds enormous quantities of high grade volatile oil. That is what makes the Eagle Ford such a game changer for both the landowner and operator, and that is why acreage is so incredibly valuable.
CEO of EOG Resources Eagle Ford Presentation 9/08/2011
Listen to Mark Papa as he gives a comprehensive explanation as to why volatile oil window Eagle Ford acreage is so incredibly valuable. Go to EOG Resources and download the presentation and then sign in to listen to the presentation.
Presentation materials:
September 08, 2011
Oil & Gas White Paper Details New Frac Design
New Enhanced Recovery Frac Jobs Developed
Recovery factor significantly being increased, producing greater oil yields
Novel approach more effectively stimulates the Eagle Ford Shale compared to typical and earlier treatment designs. Bodes well for increased well production for wells drilled in the future. More oil recovery means significantly more dollars per well.
http://www.slb.com/~/media/Files/industry_challenges/unconventional_gas/industry_articles/201108_pilot_wells_test_stimulation_approach.ashx
Pot Calls kettle Black: McClendon Criticizes Opponents
“The chief executive of the world's largest shale-gas producer on Wednesday hit back at opponents of hydraulic fracturing, accusing them of fear-mongering and lies as protesters demonstrated”
The flamboyant CEO of Chesapeake has previously openly bragged about how he and his “Army” of landmen have leased up vast valuable acreage for far less than it's true value. McClendon now complains about having critics. McClendon is one of the highest paid CEOs in the county and earns far more than his company pays in taxes. This guy just kills me with his hypocrisy.
September 7, 2011
Analysis: Future Eagle Ford Wells To Produce More Oil
15% to 23% Improvement in EUR & Higer IP's
Landowners can expect wells drilled in the future will show marked improvement in how much oil is drawn from the Eagle Ford reservoir. Learning curve indicates up to a quarter more revenue per well will be earned. That could mean on average $750,000 more per well than currently being produced.
Seguin To Get Rail Spur for Eagle Ford shipments
http://seguingazette.com/news/article_5d15431c-d7e2-11e0-9691-001cc4c002e0.html
September 4, 2011
Driving back home last night from the Texas Longhorn game in Austin , I saw a beautiful sea of drilling rig tower lights and gas flares lighting up the clear night countryside around Hochheim. The Meyer Unit drilling rig is now very close to the road and drilling directly across from my 70.15 acres, close enough that I could hit it with a rock. Other new drilling rigs are cropping up very near US 183 in the Concrete area. From high points in the area more than a dozen active rigs can be seen.
The $150 million Sanchez IPO coming out very soon is very significant, it puts a lot more color on what is going on with stray acreage in the Eagle Ford. “In our Palmetto area, we have approximately 9,300 net acres in Gonzales County, Texas with an average working interest of approximately 49%. We believe that our Palmetto acreage lies in the volatile oil window where we anticipate drilling, completion and facilities costs on our acreage to be between $5.5 million and $7.5 million per well. We have participated in the drilling of four gross wells on our acreage that had an average initial 30-day per well choke restricted production rate of 788 boe/d. We have identified 76 net unrisked drilling locations in our Palmetto area. For the period from July 2011 through December 2012, we plan to spend approximately $50 million to drill 14 gross (7 net) wells in our Palmetto area. “
September 2, 2011
Wildcatter Joins Eagle Ford Party:
Sancho or Sanchez? EAGLE FORD IS NEW SPINDLETOP.......Sanchez Energy IPO
A new filing for development funds to explore the Eagle Ford. Pure play Eagle Ford company looking for acreage to drill.
Nuff Said
August 31, 2011
Texon Well Comes In At 1,605 Barrel of Oil Per Day + Gas
Texon said the Tyler Ranch EFS-2H well flowed at a rate of 1605 barrels of oil equivalent per day during testing, consisting of 1488 barrels of oil and 700,000 cubic feet of gas per day.
Eagle Ford Drilling & Completion Technology Advances
According to several published oil and gas industry accounts, horizontal drilling and completion technology is rapidly advancing. Wells being drilled today are far more economic and advanced than those drilled a couple of years ago. Eagle Ford wells today are being drilled with the precision of a high tech medical procedure like a cardiac catheterization. Hydraulic fracturing technology too has made many significant advances. Recent new frack designs have advanced the state of the art considerably. Operators across the board are upping their EUR estimates on Eagle Ford wells significantly. Well spacing is going down from the current 80 acre spacing to 60 acres, with the possibility of eventually settling out at 40 acre spacing. Good drillable acreage continues show a uptrend in valuation. This is good news for landowners and operators alike. The huge and unprecedented economic opportunity from Eagle Ford oil window acreage is unmatched by any other basin or shale play, bar none.
August 30, 2011
Water issues In The News
A Comprehensive Study of Water Management Planning in
the Eagle Ford Shale
August 29, 2011
Sandhills Pipeline Confirms Eagle Ford Build-Out
High Pressure From Wells In Overpressure Oil Window Acreage To Be Used To Transport Liquids Down Pipeline Until Pumping Stations Are Built
DCP Midstream is laying 720 miles of 20 inch pipeline to handle NGL production coming out of the Eagle Ford and eventually West Texas. Initially, the pipeline will transport NGLs from the Eagle Ford only and product will be pushed down the line to Mont Belvieu fractionators by the high pressure generated from the overpressure volatile oil window wells. The ability of the overpressure oil window to generate enough pressure to deliver product to market without pump assist makes this acreage all the more valuable to operators. This high priority pipeline will begin carry NGLs to Houston in 2012. Eventually, the pipeline will be pump assisted and tied in to West Texas shale oil production.
August 28, 2011
DeWitt EFS Worker Housing Project Contemplated
Rigzone is reporting that Remote Logistics is planning a worker camp/housing complex near Cuero with all the amenities of home. Camps to resemble lodges constructed from trailer's, offering food, lodging and entertainment. This is further validation that nascent Eagle Ford development is just beginning and significant ramp up is imminent with thousands of new workers expected.
August 27, 2011
Hydraulic Fracturing: The State of the Art
August 26, 2011
A Thieves Bargain
Lease Flipping By Operators At Expense of Landowners
$13+ billion of deals since June 2010, including:
– BHP acquisition of Petrohawk Energy
– Marathon Oil $3.5 billion acquisition of Hilcorp Eagle Ford acreage
– Royal Dutch Shell
– Talisman and Statoil
– CNOCC
– Reliance Industries
– KNOC
Further consolidation expected
August 23, 2011
This Magnum Hunter map may not be all that accurate but is good general identification.
August 24, 2011
Read the Aurora Oil & Gas Report For A Thorough Understanding of Eagle Ford Volatile Oil Window along DeWitt-Gonzales County line into Karnes County
Aurora Oil & Gas Latest Update Presentation August 2011 Highlights Below
*over 200 rigs drilling in Eagle Ford today
*successful 2009 farm-out to Hilcorp
*majors scrambling for Eagle Ford acreage
*Eagle Ford most active US oil & gas shale
*$13+ billion of deals since June 2010, including:
– BHP acquisition of Petrohawk Energy
– Marathon Oil $3.5 billion acquisition of Hilcorp Eagle Ford acreage
– Royal Dutch Shell
– Talisman and Statoil
– CNOCC
– Reliance Industries
– KNOC
Further consolidation expected
*”pure play” the “sweet spot” mapped (DeWitt-Gonzales County line into Karnes County
• Uniform, continuous and predictable shale across the play (200km x 80km)
• Majority of Eagle Ford trend is economic but some is very economic
• Major US shale players continuing to refocus their portfolios towards liquid rich shales
• Optimizing drilling, completion and
production processes
• Significant upside potential from
tighter well spacing
• Marathon Oil announced plan to
ramp up core area development
which will drive production and
cash flow generation
• Leverage to oil price
August 23, 2011
Aurora Oil & Gas New Presentation/Report
Overpressure Volatile Oil Window is bigger, better, far more productive, more profitable and valuable than previously announced. Aurora sees tighter 60 acre or 40 acre spacing. For the latest detailed information regarding the extreme economics of the play along the DeWitt-Gonzales line extending into Karnes County, go to:
http://www.auroraoag.com.au/IRM/Company/ShowPage.aspx/PDFs/1689-64871851/InvestorPresentationMaterial
Landowners Working Together In Solidarity Are More Powerful Than The Largest Oil & Gas Company
August 22, 2011
Aurora Oil & Gas New Presentation/Report
Overpressure Volatile Oil Window is bigger, better, far more productive, more profitable and valuable than previously announced. Aurora sees tighter 60 acre or 40 acre spacing. For the latest detailed information regarding the extreme economics of the play along the DeWitt-Gonzales line extending into Karnes County, go to:
http://www.auroraoag.com.au/IRM/Company/ShowPage.aspx/PDFs/1689-64871851/InvestorPresentationMaterial
Landowners Working Together In Solidarity Are More Powerful Than The Largest Oil & Gas Company
TAKE A STAND FOR TEXAS LANDOWNER JUSTICE
August 22, 2011
Eagle Ford Well Fracced Using Propane/Butane
On “August 21, 2011, Jadela completed fraccing its El Indio #1-H well into the Eagle Ford shale formation on its property located in Maverick County, Texas. Jadela used a Packers Plus StackFRAC(R) Open Hole Multi-Stage completion liner system and fracced the well using propane/butane and sand instead of water.”
Read more:http://www.benzinga.com/pressreleases/11/08/m1874331/jadela-completes-eagle-ford-well-using-propanebutane-using-gasfrac-ener#ixzz1VrUWeJJa
Read more:http://www.benzinga.com/pressreleases/11/08/m1874331/jadela-completes-eagle-ford-well-using-propanebutane-using-gasfrac-ener#ixzz1VrUWeJJa
August 20, 2011
Is The Texas Supreme Court In The Pocket of Big Oil & Gas?
Supreme Court Rulings Look Like Judicial Activism
Landowner Jury Verdict Cases Overturned, Bias Alleged
IS THE COURT BLATANTLY BIASED? IT APPEARS IT IS!
John McFarland is a renowned oil and gas attorney. He writes a blog with a lot of helpful information to aid landowners in navigating the complex legal world of oil and gas regulations in the State of Texas. Mr. McFarland documents a history of judicial activism by the Texas Supreme Court against landowners. His blog can be found at:
Supreme Court Overrules Motions for Rehearing in BP v. Marshall http://www.oilandgaslawyerblog.com/2011/08/supreme-court-overrules-motion.html
Texas Supreme Court Again Reverses Jury Verdict Favoring Royalty Owners
http://www.oilandgaslawyerblog.com/2011/08/supreme-court-overrules-motion.html
Exxon vs., Emerald Oil & Gas Co
This case is a must read for landowners. Simply put, Exxon had a lease paying a 50% royalty interest to the Oconnors in Refugio County that they wanted to renegotiate. Being unsuccessful, Exxon terminated the lease and trashed the wells with junk pipe and other foreign material to sabotage the wells on the lease. The Oconnors sued and won the case only to have the jury verdict overturned by the Texas Supreme Court.
August 19,2011
Lawsuits Fly Over Pipeline Eminent Domain
Lawsuits Fly Over Pipeline Eminent Domain
Wall Street Journal Reports Surge In Litigation
Eagle Ford Landowners Fight Oil Companies
The Wall Street Journal is reporting today a surge in lawsuits over the use of eminent domain to cross landowners property. Eminent domain is used by operators in the taking of private property for private use of the oil companies. Local officials hear these cases first and the cozy relationship between some local government officials and oil and gas interests is alarming.
August 18, 2011
Landowner's Should Learn The Benefits Of A Farmout Agreement Over A Oil & Gas Lease: Eagle Ford Oil Window Is Offering 100% Drilling Success And New Opportunities
Documenting the Oil and Gas Farmout Agreement
“Second only to the oil and gas lease and the assignment of an oil and gas lease, the farmout agreement is arguably the most widely used instrument in the oil and gas industry.”
“Second only to the oil and gas lease and the assignment of an oil and gas lease, the farmout agreement is arguably the most widely used instrument in the oil and gas industry.”
EXPOSED: Railroad Commissioner David Porter Packs Eagle Ford Task Force With Oil & Gas Members: No Landowner's
Eagle Ford fracking body packed with industry interests
“We went looking for diversity, and found 12 of the 22 members to be straight out of the oilfield and oilfield services side of the equation.”
August 17, 2011
Eagle Ford Acreage Going Higher With Each Passing Day
Comments from S.P. Johnson IV
President and CEO of Carrizo Oil & Gas, Inc.
“We're always trying to expand in the areas where we're having success. So we're trying to buy acreage right now primarily in the Eagle Ford.....”
“Right now, accelerating the Eagle Ford shale is our number one opportunity. We've had excellent results with wells that come online at 700 to 1,000 barrels of oil per day “
“right now, oil is trading at such a premium to natural gas, when you compare the price per energy equivalent, everybody is trying to get oilier because you can make so much more profit out of the same amount of energy “
August 16, 2011
Eagle Ford Pushes East Into Fayette & Lavaca Counties ZaZa Energy Sheds More Light On Hess Eagle Ford Program
http://info.drillinginfo.com/urb/eagleford/operators/2011/08/zaza-energy-sheds-more-light-on-hess-eagle-ford-program/
Eagle Ford Pushes East Into Fayette & Lavaca Counties ZaZa Energy Sheds More Light On Hess Eagle Ford Program
http://info.drillinginfo.com/urb/eagleford/operators/2011/08/zaza-energy-sheds-more-light-on-hess-eagle-ford-program/
Eagle Ford Is Just Getting Kicked Off
We Are Merely In The First Inning
You Ain't Seen Nothing Yet!!!
On The Rise:Lease Bonus, Royalty %
Trending: Joint Venture, Farmout Agreement
Who's Telling The Eagle Ford Truth?
All Eagle Ford acreage is valuable. Eagle Ford acreage that is located in the overpressure volatile oil liquids window is incredibly valuable. Even with the wall to wall news coverage today, few landowner's realize the full extent and true value of what their land is worth. Most of you are aware by now that I began blogging about the Eagle Ford over 1 ½ years ago. I alone began sounding the alarm for Eagle Ford landowner's to arm themselves with information prior to signing any oil and gas leases. Prior to me publishing my blog, few people knew what was going on, because landowner's were being fed a steady diet of misinformation, disinformation, half-truth's and lies. Many gullible landowner's were exploited then by slick operators. Since I first began blogging, my efforts to educate landowner's has been pushed back by nay Sayers, and those with an agenda to keep landowner's ignorant about the true value of their land. In the beginning, operator's used their landmen to lease up huge Eagle Ford acreage positions for peanuts, mere pennies on the dollar of it's true worth, using stealth and secrecy. Operator's had their landmen use psychology to pressure landowner's into singing cheap leases, usually using the onerous “Producers 88” lease form. The now infamous “Producers 88” lease form and it's many variations are note worthy for not being mineral owner friendly.
By all accounts the Eagle Ford is very early in it's development. Operator's are rushing to incorporate as much land as they can into large production units by drilling a well to HBP or hold by production their leased acreage. I have listened to many a presentation by the majority of the oil and gas operator's in the Eagle Ford and they all indicate to me that we ain't seen nothing yet. The Eagle Ford will be producing high value volatile oil for another 30 to 40 years. During the next decade we will see increased infrastructure build-out, with the addition of many new pipelines, compressor stations, treatment facilities and other facilities to get the oil and gas to market. Another trend we are seeing is the tighter spacing of wells and higher EURs, meaning each Eagle Ford formation well may ultimately produce on the order of $1 ½ million per acre. Let me say that again, we are looking at some Eagle Ford acreage producing as much as 15,000 barrels of oil per acre. Little discussed today are the tertiary targets for oil and gas that lie above and below the Eagle Ford formation. Look for the oil and gas operator's to be around the area for many decades to come.
Lately we have seen a spate of farmout agreement deals whereby investors are putting up the capital for drilling Eagle Ford wells in exchange for a 50% working interest in the production. In such Joint Venture deals, the landowner does not receive a signing bonus but rather keeps a much higher percentage of what the wells ultimately produce, usually 50%. Since the average volatile oil window Eagle Ford well is currently paying out on average after 3 to 4 weeks of production, this can be a better situation for the landowner than a Paid Up Oil & Gas Lease. As we move forward, I look for landowner's to favor the Farmout Agreement over leasing, and I predict this will become the trend as the Eagle Ford is further developed. With PUD status, proved undeveloped acreage, operators are drilling 100% successful wells, the proverbial fish in the barrel, which makes this business arrangement possible.
The success of this blog eaglefordinfo.blogspot.com with it's large number of page views per day, is testimony to the hunger for truth about the Eagle Ford. I take very seriously my responsibility to report the truth. I appreciate all the support that I have received to date. Through literally hundreds of phone calls, emails and personal visits, I have come to understand just how important this blog has become to you as a beacon of truth. My blog is non-commercial and 100% trustworthy. Thank you for helping to make this blog so successful and helping to get the truth out.
August 13, 2011
Loreto Resources to Farm In Acreage at 50% Working Interest In Wells Drilled: Loreto See's Great Potential For Light Oil Recovery In Eagle Ford.......Austin Chaulk & Buda Formations
Key highlights of the letter of intent are as follows:
Farm-in agreement includes 5,266 gross acres in the Eagle Ford light oil trend.
Current drilling reports significant volumes of recoverable light oil in the Eagle Ford Shale, Austin Chalk and Buda formations. Based on core samples, log analysis and well modeling done by Weatherford Intl. significant deposits of light sweet oil exist.
Acreage is adjacent to the Petrohawk Energy Corporation Red Hawk Land Block. While less than the overpressure oil window Loreto acreage has shown average initial production rates per well from wells targeting only the Eagle Ford Shale of 375 bopd.
Accelerated work program currently anticipated to include (i) the completion, fracturing and tie in of the Matthews/Dyami #1-H horizontal test well with up to a 15 stage fracture stimulation utilizing a Baker Hughes shot point sleeve, (ii) drilling of a second vertical well on the Murphy Lease which is currently drilling; and (iii) the fracturing, tie in and completion of two Murphy vertical wells.
Nadine C. Smith, Chairman of the Board of Loreto, said, "We are very excited to announce the execution of the letter of intent with Eagleford Energy for joint development of this attractively located acreage in the oil rich sections of the highly sought after Eagle Ford Shale play. We will initially be targeting the Eagle Ford, Austin Chalk and Buda formations but are mindful of the multi-stacked formations prospective for oil and gas in this area.
August 10, 2011
Eagle Ford Boom to Bust:
Frenzied Equipment Build-Out To Produce Glut of Equipment
The frenzy of leasing, drilling, pipeline construction and infrastructure build-out activity in the Eagle Ford continues unabated. The mad rush to develop this hydrocarbon rich shale quickly is resulting in the addition and expansion, on an unprecedented scale, significant numbers of hydraulic fracturing crews and fleets of modern drilling rigs and equipment. The current tight market for flex drilling rigs and frac services has unleashed a torrent of new orders from manufacturers of pumping and drilling equipment to fill the void. New frac service companies are being formed, as well as operators are building their own fleets of fracturing equipment and hiring their own crews to run it. The backlog of current and future Eagle Ford wells to be fraced will ultimately be sated by a glut of new equipment that will come on line. It is only a matter of time before today's tight market and shortage of equipment, men and materials will become a crowded market that will eventually drive down prices to drill and complete a Eagle Ford well. The majority of current leases will be expiring within two years and the land will then be HBP essentially forever. At that point, operators will begin to develop the Eagle Ford in an orderly manner and the glut of new equipment will then become a liability to their owners. Frac services and operators alike will then likely struggle to keep all their newly acquired equipment busy earning day rates and profitable. Boom to Bust is the natural order of things.
The Eagle Ford Shale Will Emerge As “The Major US Oil & Gas Play” Over Next Decade
“The Eagle Ford play is expected to emerge as the major oil and gas play in the United States over the next decade. Experts estimate it ranks sixth in the size among all-time giant oilfields in the U.S.”
Darren Jamison
Capstone Turbine
August 6, 2011
Shell Pipeline from Houma, La to Houston To Be Reversed
A Shell pipeline currently utilized to carry crude oil from Houma, La to refineries in Houston, Tx will probably be reversed in order to carry the higher value Eagle Ford crude oil to be sold into the Light Louisiana Sweet (LLS) market at St. James, Louisiana. Operators receive on the order of $10 per barrel premium for Eagle Ford crude over WTI and other heavier crude oil.
August 4, 2011
EOG Announces Spectacular Oil & Liquids Success In DeWitt & Gonzales Counties: CEO Predicts Tighter Spacing Than Current 80 acres & Higher EUR's
Crude Oil and Liquids Activity
Early in its transition to a liquids-focused company, EOG identified the rich oil potential of the South Texas Eagle Ford Shale and amassed a large acreage position in the sweet spot of the crude oil window.
"We are finding that well results across our 535,000 net acre position in the Eagle Ford oil window are remarkably similar. The wealth of drilling, completion and production data at our fingertips is reflected in the steadily rising momentum of our operations and success in achieving more predictable results," Papa said.
As EOG further defines geologic sub-trends and refines completion techniques, the majority of its Eagle Ford wells are being completed to sales at initial production rates in excess of 1,000 barrels of crude oil per day (Bopd). Leveraging this consistency, EOG ramped up its drilling activity from 10 rigs at the beginning of 2011 to its current intensive program of 22 rigs.
In Gonzales County where EOG is actively drilling, the King Fehner Unit #2H, #4H, #5H and #6H wells began initial production at maximum rates ranging from 1,238 to 1,487 Bopd with 1.2 to 1.6 million cubic feet per day (MMcfd) of rich natural gas.
"These are the first Eagle Ford wells that EOG has tested with a tighter spacing pattern. If downspacing proves economically viable, we have the potential to significantly increase our reserves in the Eagle Ford," Papa said.
EOG reported production rates from other successful wells in Gonzales County. The Merritt #4H had a peak initial production rate of 1,361 Bopd with 0.6 MMcfd of rich natural gas. The Steen Unit #1H, #2H, #4H and #6H came online with production rates ranging from 663 to 1,269 Bopd with 0.7 to 1.4 MMcfd of rich natural gas. In its far northeastern acreage where EOG announced success from a fault block earlier this year, the Hill Unit #1H and #3H were completed. They flowed to sales at peak rates of 1,461 and 1,734 Bopd with 1.0 and 1.3 MMcfd of rich natural gas, respectively.
August 3, 2011
Petrohawk Updates Eagle Ford Activity: 9 Rigs in DeWitt
The Black Hawk area (DeWitt County, Texas) continues to produce excellent results. A majority of Petrohawk-operated wells were produced on a constrained basis due to transportation infrastructure limitations. During the quarter, Petrohawk averaged nine operated rigs in the Black Hawk area, with 25 operated and one non-operated wells drilled. Net production from Black Hawk averaged 73 Mmcfe/d, comprised of 22% natural gas, 62% condensate and 16% natural gas liquids. Transportation infrastructure issues for the Company are moderating in the area with the addition of a dedicated truck fleet. Modifications to facilities at the Company's Point Comfort barge facility are nearly complete and the facility is expected to begin operating during the third quarter.
July 31, 2011
Texas Railroad Commissioner David Porter Announces Members of Eagle Ford Task Force
Do You See A Single Member Who Represents Landowner's Interest?
The members of the Task Force are:
- Leodoro Martinez – Middle Rio Grande Development Council, Executive Director, Cotulla
- Kirk Spilman – Marathon Oil, Asset Manager Eagle Ford, San Antonio
- The Honorable Jaime Canales – Webb County Commissioner, Precinct 4, Laredo
- Teresa Carrillo – Sierra Club, Executive Committee Member – Lone Star Chapter, Treasurer – Coastal Bend Sierra, Corpus Christi
- James E. Craddock – Rosetta Resources, Senior Vice President, Drilling and Production Operations, Houston
- Erasmo Yarrito – Texas Commission on Environmental Quality, Rio Grande Valley Water Master, Harlingen
- Steve Ellis – EOG Resources, Senior Division Counsel, Corpus Christi
- The Honorable Daryl Fowler – Dewitt County Judge, Cuero
- Brian Frederick – DCP Midstream, Southern Unit Vice President for the East Division, Houston
- Anna Galo – Vice President, ANB Cattle Company, Laredo
- The Honorable Jim Huff – Live Oak County Judge, George West
- Stephen Ingram – Halliburton, Technology Manager, Houston Business Development & Onshore South Texas, Houston
- Mike Mahoney – Evergreen Underground Water Conservation District, General Manager, Pleasanton
- James Max Moudy – MWH Global, Inc., Senior Client Service Manager, Houston
- Trey Scott – Trinity Minerals Management, LTD, Founder, San Antonio
- Mary Beth Simmons – Shell Exploration and Production Company, Senior Staff Reservoir Engineer, Houston
- Terry Retzloff – TR Measurement Witnessing, LLC, Founder, Campbellton
- Greg Brazaitis – Energy Transfer, Vice President, Government Affairs, Houston
- Glynis Strause – Coastal Bend College, Dean of Institutional Advancement, Beeville
- Susan Spratlen – Pioneer Natural Resources, Senior Director, Corporate Communications & Public Affairs, Dallas
- Chris Winland – Good Company Associates; University of Texas at San Antonio, Interim Director, San Antonio Clean Energy Incubator, Austin/San Antonio
- Paul Woodard – J&M Premier Services, President, Palestine
July 29, 2011
In Two Months Eagle Ford Crude Oil Production Surges from 71,000 bpd to 160,000 bpd
Eagle Ford crude is high grade crude worth far more than WTI and is being shipped to Louisiana to be blended with heavy crude to be sold into the Light Louisiana Sweet (LLS) market at St. James, Louisiana. Joint Venture infrastructure build out in both Louisiana and Texas will soon be announced by NuStar and EOG Resources. To understand why Eagle Ford crude oil is so valuable you need to read the following news story from Reuters
Rumors Are Circulating That Additional Big Eagle Ford Deals Pending & Will Soon Be Announced. $100,000 per acre Strong Possibility For Some Volatile Oil Window Acreage. Stay Tuned To This Blog For Latest Eagle Ford News
July 26, 2011
Meyer Unit across the road from me on US 183
July 23, 2011
July 22, 2011
Nixon Refinery To Fire Back Up By End 2011
July 15, 2011
"You know a landman's lying if his mouth is moving," Matt Castrogiovanni said.
How Low Do They Stoop? READ THIS!!!
July 22, 2011
Reuters News Service is reporting that Petrohawk CEO Floyd Wilson Will Receive Millions In Retained Bonus
The former ceo of Petrohawk will receive a “retention bonus payment” worth millions of dollars in BHP Billion's $14.1 Billion takeover
Eagle Ford crude to be refined and sold locally
Blue Dolphin Energy Company announced today that it has signed a definitive agreement to acquire the Nixon Crude Processing Facility (the "Nixon Facility") from a privately-held company in an all stock transaction.
The 56-acre Nixon Facility, located on the border between Gonzales and Wilson Counties in Nixon, Texas, sits in the heart of the oil trend of the Eagle Ford Shale play and within a dozen miles of some of the highest producing wells drilled so far. The facility has a near term processing capacity of 15,000 barrels per day with a storage capacity of 295,000 barrels and, as a topping unit, a low operating cost. The Nixon Facility is currently in the final phase of refurbishment with an anticipated restart in the fourth quarter of 2011. Once complete, the facility will separate input crude oil and condensate into diesel and jet fuel for sale into nearby markets, as well as naphtha and atmospheric gasoil for sale to nearby refineries for further processing. Initial throughput is estimated at approximately 10,000 barrels per day. Read more at: http://www.marketwatch.com/story/blue-dolphin-to-acquire-nixon-crude-processing-facility-2011-07-20?reflink=MW_news_stmp
July 15, 2011
BHP Billiton, the Australian oil & gas and minerals company, will acquire Petrohawk for over $12 billion it was announced last night.
Virtually all of the high value acreage that Petrohawk is selling to BHP Billiton is in DeWitt County. Petrohawk has falsely claimed that they discovered the Eagle Ford. The facts are that the Eagle Ford formation has been well know for over 50 years and the Eagle Ford has been identified by many geological reports, most of them paid for by the U.S. Government for years. Reports as far back as 1988 have confirmed the concentration of hydrocarbons in abundance in the shale and that Eagle Ford is source rock of the Austin Chaulk.
It's not just disingenuous that Petrohawk, EOG and others have falsely claimed that they discovered this great petroleum treasure, it's a blatant and shameful attempt to cover their tracks for coming in and leasing large acreage blocks on the cheap, thereby depriving landowner's of fair market value for their acreage.
For most landowner's it's too late to do anything about it now, but it's high time to call a spade a spade, and these operators have pulled off the biggest oil and gas heist in petroleum history. For the most part, what the operators have done is nothing short of buying Eagle Ford acreage in what I would call an unconscionable bargain.
UNCONSCIONABLE BARGAIN, contracts. A contract which no man in his senses, not under delusion, would make, on the one hand, and which no fair and honest man would accept, on the other.
The Eagle Ford operators who swooped into the area and bought acreage paying not even a penny, not even one red cent on the dollar, have no conscience. They use their great economic power to make political friends to help them run rough shod over honest and decent landowner's. It was a pretty slick heist they perpetrated on South Texas and continue to do to this day. I have heard truly despicable stories that attest to these robber barons and how they tricked many a landowner. The conduct of Eagle Ford operators to date is nothing short of despicable.
What I have never been able to figure out is how any politician would want to buddy up to these scoundrels? Some local politician's and civic leaders actually wear their association with these robber barons as some perverted badge of honor. GO FIGURE! First came the railroads who stole the land from honest people and even ran their own police force. Big oil, having seen how the railroads had been successful used that knowledge to rob the people of their land with a new game, the oil and gas lease structured in their favor. The oil and gas industry uses surrogates to do their dirty work that has the net effect of robbing landowner's of their land. Big oil virtually has packed the courts with their friends, and they buy-off the legislature and hand pick the Texas Railroad Commission. It is all really shameful and disgusting behavior done in the name of free enterprise. It is nothing short of laissez-faire economics in which the powerful are allowed to disadvantage the powerless. Think about this the next time you go to the polls and remember who your true friends are. South Texas is well on it's way to becoming just an extension of the Houston Ship Channel in exchange for a few pieces of silver.
July 12, 2911
Crazy Jim Cramer Mad Money interview with CEO of Carrizo Oil & Gas
This puts a little more hard, tangible evidence and public visibility as to why Eagle Ford crude is worth far more than WTI and puts it on a par with Brent, which trades around $20 per barrel above West Texas Intermediate. The volatile oil window along the DeWitt and Gonzales County line is even far more valuable than this Maverick Basin crude Carrizo is producing.
July 11, 2011
The Buda formation below The Eagle Ford is being Drilled & Developed for oil and gas too.............
Is the Buda destined to be the “son of Eagle Ford”...........Maybe so, read more and find out why Eagle Ford is not the only hot play around Gonzales, DeWitt, Karnes, Wilson counties
July 5, 2011
Energy Experts See Rapid Gains In Eagle Ford
The stars are all aligned and The Eagle Ford Shale, especially DeWitt, Gonzales, Karnes Counties are poised for extremely rapid growth. Extensive pipeline and treatment facilities ensure that the extreme economics and enormous profitability of the Eagle Ford will be fast tracked and built out on a frenzied scale. Prices will go extremely much higher very soon. We are still in the first inning and the Eagle Ford is getting ramped up.
July 4, 2011
July 1, 2011
The Shale Oil Story Is Huge
http://www.instituteforenergyresearch.org/2011/06/30/shale-oil-may-mirror-the-shale-gas-boom/
CNN Money, Billions of barrels of untapped U.S. oil, March 9, 2011,http://money.cnn.com/2011/03/04/news/economy/oil_shale_bakken/index.htm Geology, Assessment of Undiscovered Oil Resources in the Devonian-Mississippian Bakken Shale Formation, Williston Basin Province, Montana and North Dakota, 2008, http://geology.com/usgs/bakken-formation-oil.shtml
Energy Information Administration, Proved Oil Reserves,http://www.eia.gov/dnav/pet/pet_crd_pres_a_EPC0_R01_mmbbl_a.htm
The New York Times, Shale Boom in Texas Could Increase U.S. Oil Output, May 27, 2011,http://www.nytimes.com/2011/05/28/business/energy-environment/28shale.html?pagewanted=2&_r=2&nl=todaysheadlines&emc=tha2
Fox News, New Drilling Method Opens Vast U.S. Oil Fields, February 10, 2011, http://www.foxnews.com/us/2011/02/10/new-drilling-method-opens-vast-oil-fields/#ixzz1QVQAt28i
The Washington Examiner, Three thousand new oil wells to be drilled in Texas within the year, May 31, 2011,http://washingtonexaminer.com/blogs/beltway-confidential/2011/05/three-thousand-new-oil-wells-be-drilled-texas-within-year
The Wall Street Journal, America Needs the Shale Revolution, June 13, 2011,http://online.wsj.com/article/SB10001424052702304432304576369140191493636.html?mod=WSJ_Opinion_LEADTop
The Washington Post, Obama’s focus on visiting clean-tech companies raises questions, June 26, 2011,http://www.washingtonpost.com/politics/obamas-focus-on-visiting-clean-tech-companies-raises-questions/2011/06/24/AGSFu9kH_story.html
The Wall Street Journal, America Needs the Shale Revolution, June 13, 2011,http://online.wsj.com/article/SB10001424052702304432304576369140191493636.html?mod=WSJ_Opinion_LEADTop
Salon, Everything you’ve heard about fossil fuels may be wrong, May 31, 2011,http://www.salon.com/news/politics/war_room/2011/05/31/linbd_fossil_fuels
June 20, 2011
June 29, 2011
Eagle Ford Gets Koch-Ed Up With Pipeline
20-inch crude oil pipeline between Pettus and Corpus Christi
The Shale Oil Story Is Huge
CNN Money, Billions of barrels of untapped U.S. oil, March 9, 2011,http://money.cnn.com/2011/03/04/news/economy/oil_shale_bakken/index.htm Geology, Assessment of Undiscovered Oil Resources in the Devonian-Mississippian Bakken Shale Formation, Williston Basin Province, Montana and North Dakota, 2008, http://geology.com/usgs/bakken-formation-oil.shtml
Energy Information Administration, Proved Oil Reserves,http://www.eia.gov/dnav/pet/pet_crd_pres_a_EPC0_R01_mmbbl_a.htm
The New York Times, Shale Boom in Texas Could Increase U.S. Oil Output, May 27, 2011,http://www.nytimes.com/2011/05/28/business/energy-environment/28shale.html?pagewanted=2&_r=2&nl=todaysheadlines&emc=tha2
Fox News, New Drilling Method Opens Vast U.S. Oil Fields, February 10, 2011, http://www.foxnews.com/us/2011/02/10/new-drilling-method-opens-vast-oil-fields/#ixzz1QVQAt28i
The Washington Examiner, Three thousand new oil wells to be drilled in Texas within the year, May 31, 2011,http://washingtonexaminer.com/blogs/beltway-confidential/2011/05/three-thousand-new-oil-wells-be-drilled-texas-within-year
The Wall Street Journal, America Needs the Shale Revolution, June 13, 2011,http://online.wsj.com/article/SB10001424052702304432304576369140191493636.html?mod=WSJ_Opinion_LEADTop
The Washington Post, Obama’s focus on visiting clean-tech companies raises questions, June 26, 2011,http://www.washingtonpost.com/politics/obamas-focus-on-visiting-clean-tech-companies-raises-questions/2011/06/24/AGSFu9kH_story.html
The Wall Street Journal, America Needs the Shale Revolution, June 13, 2011,http://online.wsj.com/article/SB10001424052702304432304576369140191493636.html?mod=WSJ_Opinion_LEADTop
Salon, Everything you’ve heard about fossil fuels may be wrong, May 31, 2011,http://www.salon.com/news/politics/war_room/2011/05/31/linbd_fossil_fuels
June 20, 2011
Strike Energy Announces “Eagle Landing Joint Venture”in Fayette County
Operators are successfully extending the productive Eagle Ford trend into eastern Gonzales
County in the vicinity of the joint venture acreage position, including Penn Virginia, Forest Oil and
Magnum Hunter. Three wells recently drilled in Fayette County by Southern Bay Operating, LLC (a
subsidiary of GeoResources Inc) are now being fracced and tested. These wells Flatonia East Unit 1H,
Flatonia East Unit 2H and Black Jack Springs Unit 1H are in the vicinity of the Strike joint venture leasing.
June 29, 2011
Japaneese Mitsui CompanyTo Pay SM Energy $20,000-$22,000 per acre
The acreage being acquired by Mitsui is in the Maverick Basin and contains approximately half the oil that the overpressure volatile oil window in DeWitt County contains. On a comparison boe basis this deal would seem to value Eastern Volatile Oil Window acreage at double or around $40,000 to $44,000 per acre.
Additional Rail Capacity Announced For Eagle Ford Crude
New rail facilities are being added to handle the increasing volume of crude oil emanating from the Eagle Ford. Five hubs to be added.
How To Frack A Well In Pictures
http://www.mysanantonio.com/slideshows/business/slideshow/Hydraulic-fracturing-15238.php#photo-2
June 28, 2011
Enterprise to add 75,000 b/d fractionator (Play it again Sam!)
Yet another big fractionator announced today to handle tremendous volume of NGLs coming out of the Eagle Ford. Just when you think Eagle Ford can't get grander and bigger, along comes more big news. Can you say Houston Ship Channel?
Mark Papa, the CEO of EOG Resources tells us again why Eagle Ford is so special and so valuable today on CNBC financial network. Watch this video to better understand why Eagle Ford acreage is so valuable.
http://video.cnbc.com/gallery/?video=3000012032
http://video.cnbc.com/gallery/?video=3000012032
June 27,2011
The New York Times published a front page investigative story yesterday comparing shale gas to Enron and a ponzi scheme. Judge for yourself. The story is titled “Insiders Sound an Alarm Amid a Natural Gas Rush” http://www.nytimes.com/2011/06/26/us/26gas.html?_r=2&pagewanted=1
It would seem operators were beckoned by a siren song of riches in the natural gas shale plays. With natural gas trading today around $4.20 compared to $14 in 2008 it's easy to see how operators overran the market with a glut of natural gas. While the natural gas market has collapsed, crude oil prices have surged to over $100 a barrel, turning the oil and gas market on it's head. That's why the Eagle Ford is so hot today and that's why operators are all scrambling for acreage in the volatile oil window.
Virtually all the operators have extensive and expensive shale acreage they are choking on in the Barnett, Haynesville, Fayetteville and Marcellus. While they are wearing this massive gas acreage like a millstone around their neck right now to HBP, these same operators are waging a blitzkrieg to develop the Eagle Ford volatile oil window. In the face of a collapsed gas market, operators were forced to drill their expensive acreage to hold it by production. The acreage they paid as high as $30,000 per acre with a 27 1/2% royalty has declined precipitously in value these past three years. Operators are looking to recoup their shale gas misfortune by exploiting the Eagle Ford. True enough, the long term prospects looks rosy for natural gas but that rosy scenario is years away.
You are probably reading this blog because you are interested in learning what is going on in the Eagle Ford. The simple fact is there is a mad rush on to develop the Eagle Ford volatile oil window due to it's extreme economics that are unmatched by any other play. The economic fundamentals as measured by ROI (Return On Investment) and ROCE (Return On Capital Invested) are truly phenomenal. For reasons well documented here, every well in the volatile oil window is like a license to print money.
The recent pullback in crude oil to $90 is due to President Obama releasing 30 million barrels of light sweet crude from the Strategic Petroleum Reserve. Despite this release from the SPR the short term forecast remains bullish for crude oil and bearish for natural gas. The long term forecast for both crude oil and natural gas is bullish. The takeaway is that the Eagle Ford will continue to be fast tracked and rapidly developed at breakneck speed. And that's why you ain't seen nothing yet in the Eagle Ford. Eagle Ford volatile oil window acreage is destined to get much more expensive in a hurry.
More Confirmation Eagle Ford Has Multiple Pay Zones
I have been blogging about the multiple pay zones in the Eagle Ford for some time now telling landowners that operators are also tapping into the rich pay of the Olmos and Buda formations in DeWitt and Gonzales counties. Confirmation of multiple pay zones is beginning to be written about, as in the following independent story:
June 25, 2011
The Eagle Ford story will continue to unfold for many years to come, perhaps decades. This much is certain, that we are only in the very beginning of one of the greatest oil and gas bonanzas in history. The great Texas oil treasure that the Eagle Ford contains is merely being born today...... all the oil company executives are saying like a mantra that we are merely in the first inning of a very long economic story that will boggle the mind. I believe those oil company executives and the recent Marathon Oil purchase of a 65% working interest in 141,000 net acres from Hilcorp for $25,000 per acre is testimony to, and validates the historic value of Eagle Ford acreage. I too have been saying like a mantra that Eagle Ford acreage would become even more valuable by far than the Barnett and Haynesville was 3 years ago when it traded publicly at $30,000 per acre and 27 1/2% royalty. I take great pride in having sounded the alarm to let landowner's know well over a year ago what lay in store. For over a year now this blog has been authentic, credible and 100% accurate in what it has forecast. Eagle Ford liquids window acreage is on the verge of going up substantially from the $25,000 per acre paid by Marathon Oil.
Links to stories about the Marathon Oil purchase of Eagle Ford liquids window acreage for $25,000 per acre.......it's all perfectly true.
HBP is industry jargon for HOLD BY PRODUCTION
Typically an oil and gas lease in Texas is HBP once a well has a designated spud date. When a well is spud, the oil and gas lease is thereafter held by production as long as there is any production, allowing the operator, usually at his option, to drill additional wells within the designated unit at his leisure or to proceed to drill other horizons and depths in pursuit of secondary and tertiary oil and gas targets. Once a unit is created, whether it includes one landowner or several, the acreage allocated to that unit is held by production from the date the well is spud. It is very common in Texas for wells to be drilled years, even decades after the primary term of the oil and gas lease expires. The oil and gas lease often ties up the mineral estate for decades, even generations, and some cases forever.
June 24, 2011
5,000 barrels a day is very little frac water being cleaned by Fountain Quail........is this just public relations?
“Fountain Quail will recycle wastewater generated during the production of oil and natural gas from the Eagle Ford Shale.
The company expects to employ about 15 workers at the new operations, which will have the capacity to recycle roughly 5,000 barrels of fluid a day.”
This is the same company that presented at the dog and pony show at the GBRA meeting at Cuero recently. They failed to mention that they were only going to recycle 5,000 barrels of contaminated water per day. That is a mere fraction of the water being sucked from the aquifer to frack Eagle Ford wells and taken out of the hydrological cycle.
June 22, 2011
GBRA Board Meeting Was A Waste of Time
The much touted GBRA meeting held in Cuero today was a complete and total waste of time other than official business. Neither of the two main event speakers, the commissioner of the The Texas Railroad Commission and a spokesman for a water company with a very small operation cleaning up frac water for re-use, made themselves available for any questions. The meeting was pretty much a dog and pony show run by GBRA for political reasons doing public relations. There was a nice catered lunch served to the GBRA board of directors and invited guests to graze on. Yours truly was not invited, so I can't attest to the culinary treat the board and guests enjoyed at taxpayer expense.
June 21, 2011
GBRA Meeting in Cuero Wednesday 10:00 a.m.
The Guadalupe-Blanco River Authority will meet at the Chisholm Trail Heritage Museum on Esplanade in Cuero tomorrow. Along with GBRA directors, we will hear from Texas RRC chairman Elizabeth Jones and a Eagle Ford water company, Fountain Quail. Jones will speak about RRC regulations in regards to fracking and Quail Fountain will explain their process to treat frack water.
June 17, 2011
4,000+ boe Eagle Ford well
Magnum-Hunter CEO Claims EOG Has Hit 4,000 BOE Well
During his presentation at The London Oil and Gas Conference yesterday, the CEO of Magnum-Hunter Resources, said that he had learned that EOG Resources has recently began producing a Eagle Ford well that came in at over 4,000 barrels per day. This 4,000 boe well was drilled on acreage near the Gonzales-DeWitt County line between the Eagle Ford and Buda formations according to Evans. Evans also mentioned the $25,000 per acre paid by Marathon Oil for Eagle Ford as a good investment. A 4,000 barrel per day oil well generates $400,000 per day income with WTI at $100. Take the time to listen to the entire presentation with slides at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=164764&CID=
June 8, 2011
Magnum-Hunter CEO Claims EOG Has Hit 4,000 BOE Well
During his presentation at The London Oil and Gas Conference yesterday, the CEO of Magnum-Hunter Resources, said that he had learned that EOG Resources has recently began producing a Eagle Ford well that came in at over 4,000 barrels per day. This 4,000 boe well was drilled on acreage near the Gonzales-DeWitt County line between the Eagle Ford and Buda formations according to Evans. Evans also mentioned the $25,000 per acre paid by Marathon Oil for Eagle Ford as a good investment. A 4,000 barrel per day oil well generates $400,000 per day income with WTI at $100. Take the time to listen to the entire presentation with slides at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=164764&CID=
June 16, 2011
Bloomberg: Water Is The New Texas Liquid Gold
Oil Companies That Need Water For “Fracking” Wells Compete For H2O
http://www.businessweek.com/magazine/content/11_26/b4234028472314.htm
"MIND-BOGGING” LEVELS OF NGLs COMING FROM EAGLE FORD SHALE
The “mind-bogging” levels of natural gas liquids production coming out the Permian and Eagle Ford Shale areas of Texas has already tied up pipeline systems in the region, Energy Transfer CEO Kelcy Warren said.
http://www.foxbusiness.com/industries/2011/06/16/energy-transfer-to-buy-southern-union-for-42-billion/?test=clev
$27 million Pipeline Extension Announced
Swiss Public Radio Eagle Ford Report Aired
June 14, 2011
June 12, 2011
June 10, 2011
Bloomberg: Water Is The New Texas Liquid Gold
Oil Companies That Need Water For “Fracking” Wells Compete For H2O
http://www.businessweek.com/magazine/content/11_26/b4234028472314.htm
"MIND-BOGGING” LEVELS OF NGLs COMING FROM EAGLE FORD SHALE
The “mind-bogging” levels of natural gas liquids production coming out the Permian and Eagle Ford Shale areas of Texas has already tied up pipeline systems in the region, Energy Transfer CEO Kelcy Warren said.
http://www.foxbusiness.com/industries/2011/06/16/energy-transfer-to-buy-southern-union-for-42-billion/?test=clev
$27 million Pipeline Extension Announced
There is a fast track game on for shipping Eagle Ford product. Eagle Ford Gathering said Wednesday it will build a $27 million connection to a processing plant in Matagorda County, Texas. Faster shipping means faster payout of Eagle Ford wells.
June 15, 2011 Swiss Public Radio Eagle Ford Report Aired
The report by foreign correspondent Max Ackermann about the Eagle Ford Shale was broadcast on Swiss Public Radio. It’s in German, but you’ll get the meaning listening to it http://www.drs.ch/www/de/drs/sendungen/top/echo-der-zeit.html Just click the button “hören” under “Texas im Oelrausch” (roughly “Oil frenzy in Texas”). It features Judge Daryl Fowler, Mike Green, T R Marshall and others from the local area.
Mystery Buyer Picks Up 15,400 acres gas/NGL Eagle Ford
SM Energy sold 15,400 acres of land to a mystery buyer for $225 million. The $14, 600 per acre price is somewhat confusing because the acreage being sold is by some accounts a mix of marginal NGL acreage and no oil window acreage is included in the deal. This transaction comes in below the $25,000 per acre Marathon Oil recently paid Hilcorp for a 65% working interest in 141,000 acreas in the volatile oil window. This transaction further validates the importance of location, location, location when it come to Eagle Ford acreage. The volatile oil window stands head and shoulders above all other acreage in the Eagle Ford.June 12, 2011
A very fine article brought to us from Platts makes the case that Eagle Ford crude oil will be exported due to it's extreme economics. The production from the volatile oil window has a much higher value and the fact that Texas refineries are designed for heavier crude oil. Overpressure volatile oil window acreage virtually needs no refining, it's coming out of the ground almost like gasoline, diesel and aviation fuel. Woo Hoo!
June 10, 2011
CRESSENT ENERGY LOOKING FOR EAGLE FORD LEASE ACREAGE
“Cressent is currently looking at the Eagle Ford Shale for a 2012 leases. A lease in this area could be very promising for Cressent Energy, as some of the rigs that are currently drilling are producing more than 2000 barrels of crude per day.
Part of the Company strategy is purchase of leases with new development potential in the surrounding areas. As companies explore surrounding land, the valuation of the owned property increases and offers the opportunity to resell this property at a higher valuation.”
Part of the Company strategy is purchase of leases with new development potential in the surrounding areas. As companies explore surrounding land, the valuation of the owned property increases and offers the opportunity to resell this property at a higher valuation.”
June 8, 2011
Knowledge is power, but knowledge is of no value unless you put it into practice.
If you are curious to know and understand the full story of how the Eagle Ford came to be and why all acreage is not equal, read the following presentation:
Eagleford Shale Exploration Models: Depositional Controls on Reservoir Properties
by Kevin Corbett originally Posted May 31, 2010
June 6, 2011 D-Day Remembered
Enterprise Products To Extend Eagle Ford Shale Oil Pipeline
“Enterprise Products Partners L.P. plans an 80-mile extension of its 350,000 bpd Eagle Ford Shale crude oil pipeline in southwest Texas that would allow the partnership to serve growing production areas in the southwestern portion of the play.”http://www.pipeline-news.com/feature/enterprise-products-extend-eagle-ford-shale-oil-pipeline
June 5, 2011
The recent Marathon Oil deal to buy lease acreage for $25,000 per acre from Hilcorp and KKR appears to only account for a 65% working interest in the acreage acquired. Since most of the oil and gas leases landowner's have signed to date have been done at between 20% and 25% royalty interest, it would appear that in addition to Hilcorp and KKR receiving $25,000 per acre that they retained an overriding working interest of 10% to 15% in all the acreage they sold to Marathon. I'm just going from the press releases, so if anyone can help me better understand this deal, get int touch with me.
June 4, 2011
$25,000 Per Acre Paid for Eagle Ford acreage
"One week following Marathon Oil's board's transformational approval of the spin-off of the company's refinery assets, investors were given another major strategic move to chew over with a record $3.5 billion acquisition in the Eagle Ford shale. The acquisition of 141,000 acres, with current production of 7,000 boe/d equates to just under $25,000 per undeveloped acre, which easily outstrips the previous record price in the play of $16,000 per acre paid by KNOC to Anadarko in March 2011."http://www.istockanalyst.com/finance/story/5203468/deals-of-the-week-marathon-oil-delves-further-into-the-eagle-ford-play June 2, 2011
Swiss Public Radio
The US Correspondent for Swiss Public Radio, Max Akermann, was in Cuero on Thursday and Friday of last week to meet with myself and others involved with the Eagle Ford play for a radio story. It was my pleasure to take Max around the area. We visited with DeWitt County Judge Fowler, a pipeline rig welder, workers and other local landowner's, and royalty owner's getting big monthly income checks. Our story continues to be told by important news organizations. I can now add Swiss Public Radio to the Wall Street Journal and the Financial Times Deutschland to this blog. Max did a through and professional job of interviewing everyone, and I was especially impressed with his interview of Judge Fowler, who I personally found to be well informed and highly qualified to be leading DeWitt County through this period of rapid economic development due to the drilling and infrastructure build out currently going on.
June 1, 2011
Question from FuelFix reporter: Does this deal mean the Eagle Ford will become your signature asset?Answer from Executive Vice President of Marathon Oil Upstream Dave Robert
"we do believe the Eagle Ford is the premiere unconventional play in the United States. This will be the cornerstone asset we have in North America"
http://fuelfix.com/blog/2011/06/01/fuelfix-qa-marathon-says-eagle-ford-purchase-worth-the-price/
CEO of Marathon Mr. Clarence Cazelot answering question about the price paid for Eagle Ford acreage from Hilcorp and KKR
"I’d also note that in the heart of trend in December there was a publicly traded company that was already a partner in all of this that made an additional investment in about 5,000 undeveloped acres at about $24,000 an acre. So it’s not unheard of. The people that know this area and know the trend see the value."
http://fuelfix.com/blog/2011/06/01/fuelfix-qa-marathon-says-eagle-ford-purchase-worth-the-price/
Marathon Oil Corporation Announces $3.5 Billion Acquisition of Eagle Ford Shale Assets
Katy bar the door!!!!!!!! The floodgates are open!!!
The stars are all aligned for significant increase in lease acreage prices!!!!
HOUSTON, June 1, 2011-Marathon Oil Corporation (NYSE: MRO) announced today it has reached a definitive agreement with Hilcorp Resources Holdings, LP to purchase its assets in the core of the Eagle Ford shale formation in Texas in a transaction valued at $3.5 billion subject to closing adjustments, customary terms and conditions,and Hart-Scott-Rodino approval. Hilcorp Resources Holdings is a partnership between affiliates of Hilcorp Energy Company and Kohlberg Kravis Roberts & Co. LP. Along with other transactions expected to close by the end of 2011, Marathon's Eagle Ford acreage position is expected to more than double to 285,000 net acres. The Hilcorp transaction is expected to close Nov. 1, 2011 with an effective date of May 1, 2011.
May 24, 2011
The Eagle Ford Detective Story
Operators in the Eagle Ford carefully masked their intentions from early on when they first began leasing and amassing their Eagle Ford drilling acreage. It was quite difficult for them to do so, but for the most part, they were able to deploy on a enormous scale undetected. However, just like a real detective, the astute landowner has followed the clue's left laying all around by the oil and gas operator's. From those clues, we can now safely say that we are merely in the beginning of the Eagle Ford story, the first inning of a game that will last for several decades and produces hundreds of billions of dollars of earnings from the rich treasure of oil and NGL that will be recovered. Evidence continues to support there being over 15,000 boe per acre in the so called “sweet spots” of the Eagle Ford. With continued improving technology we likely will see even greater EUR from parts of the trend. Acreage that will ultimately produce over $1.5 million is hard to get your head around. Many residents have no idea today of the drastic transformation the Eagle Ford will have on the rural Texas way of life. We may wind up looking more like the Houston Ship Channel when this economic bonanza play's itself out.
May 19, 2011
Another New Pipeline for Eagle Ford
Velocity Midstream Partners LLC has begun building the 12-in. OD Gardendale Pipeline, which will transport light crude and condensate through Webb, Dimmit, and La Salle counties, to Velocity's Gardendale Hub and Terminal near Gardendale, Tex. Velocity expects the pipeline and hub to be operational this fall.
May 18, 2011
The map below is an aerial view of my property with identification of the surrounding property. As you can see, the 70.15 acres is located right in the middle of property being drilled and developed or already leased.
Mar 17, 2011
May 15, 2011
Eagle Ford to get additional 130 mile Pipeline
Plains All American Pipeline announced that they will spend $330 million to construct a 130 mile pipeline, a marine terminal and storage capacity at Flint Hills in Corpus Christi.
May 15, 2011
LANDOWNER HAS A POTENTIAL OFF SITE SOURCE OF FRAC WATER FOR WELL'S DRILLED ON THIS HIGH GRADE PROPERTY
The Plat below is of the Meyer Unit which is located across US 183 from the 70.15 acres available
http://eaglefordinfo.blogspot.com/2010/11/accepting-offers-on-7015-acres-in-eagle.html
http://eaglefordinfo.blogspot.com/2010/11/accepting-offers-on-7015-acres-in-eagle.html
Accelerated Eagle Ford Drilling Program Surprises Experts
Wall Street is downright giddy and investment bankers are being pleasantly surprised by the enormous earnings coming from the Eagle Ford liquids window acreage that oil operators have locked up and they are now developing and producing. The accelerated pace of drilling and infrastructure build out in the highly economic liquids window of the Eagle Ford has caught even the financial experts by surprise. Landowner's should also be aware of the extreme economics that the overpressure oil and NGL window affords. It is no small coincidence that a mad rush to develop the Eagle Ford is now fully underway. From a litany of public sources it is now clearly evident that there is so much money to be made from this play that operator's are pulling out all the stops and are doing whatever is necessary to get to the riches that the liquids part of the trend affords. As I have mentioned previously, many landowner's are now looking to doing deals on a par with the operator's i.e. Joint Venture, taking a working interest or drilling their own well by self developing their land. The old way of leasing by taking a lease bonus and royalty interest is falling by the way. The economics of the overpressure oil window are so extreme, coming in at over a EUR of $1.5 million boe per acre in a large part of the trend, that landowner's should now look to monetizing their mineral ownership of this great natural treasure by negotiating and accepting nothing less than a working interest in the wells or self developing their own acreage. Eagle Ford is just too economic to give your land away for a mere lease bonus and royalty interest deal. We are very early in the play, many innovative new ways and new ideas for landowner's to profit are in actively being considered and are just around the corner.
The oil and gas companies have long had arrangements where they farm in and take working interest in wells and units with stray acreage. Landowner's should consider doing deals along those same lines, the liquids window is just to valuable not to do so.
May 13, 2011
Eagle Ford Ramps Up Stronger Each Week With New Permits Weekly while Barnett & Haynesville Suffer Huge Drilling Decline,
In the Barnett and Haynesville shale, all the operators have continued to drill this year despite very low natural gas prices to hold by production (HBP) their massive acreage forever. They are on fast track to finish their HBP program there later this year. Their huge acreage positions there will then be forever held as a giant piggy bank for them to draw from into the distant future. That's the way operators do business in the shale plays, they drill thousands of wells and then shut them in and produce them as THEY see fit. The landowner is left holding the bag so to speak, with no say in when his acreage will be prduced.
Eagle Ford drilling continues to ramp up significantly, so look for a repeat of what happended to Barnett and Haynesville production for guidance on how Eagle Ford will be produced. Drilling will virtually end in the Barnett and Haynesville by the end of the year. As the rigs there are freed up, the modern flex rigs are finding their way to the Eagle Ford. Operators will continue to ramp up their drilling in the Eagle Ford to hld their existing Eagle Ford leases by HBP. When the current inventory of lease acreage is managed the operators will begin another round of active lease activity. Smart landowners who own enough Eagle Ford oil window acreage positions to do so, will soon begin to JV their own acreage taking significant working interest in lieu of lease bonuses. In some instances, savvy landowners will drill and operate EFS wells themselves. There is already a move being made in that direction. We are very early in the play, so look for very significant price appreciation for high grade acreage with significant oil in place in the oil window. In the Eastern overpressure oil window there there are whisper numbers of well over 15,000 boe EUR per acre. The value of the oil recoverable from this narrow strip in the Eagle Ford is over $1.5 million per acre with WTI crude oil trading at $100 per barrel. Several operators are hinting that even greater EURs will ultimately be established due to the rapid development of new technology such as the Schlumberger HiWay frac. Eagle Ford acreage will continue to command a high premium due to it's extreme economics. Eagle Ford wells on average cost half what a Barnett or Haynesville well cost and produces liquids. The high grade Eastern corridor Eagle Ford oil window acreage continues on track to set historic new highs in all areas, including lease bonus, royalty percentage, and ROI and ROCE for operators. The extreme economics that the Eastern Corridor Oil Window holds is well known and extensive collaborating public evidence exists in abundance. While landowner's wait for the right opportunity to lease or develop their land, they might as well cash in on investing in EOG stock. As a former stockbroker, I believe EOG stock is currently trading at a huge discount and disconnect to it's tremendous asset value. EOG Resources (NYSE: EOG) earnings per share is expected to grow by 333.9% this year due to it's Eagle Ford acreage. EOG stock has pulled back today to $104.41 and the door looks wide open to make a wise investment decision.
Check out the EOG wells. Superior oil window and NGL window location and huge IP
What EOG Has Learned About the Eagle Ford
100 Percent Successful Completion Rate to Date NO DRY HOLES
100 Percent Successful Completion Rate to Date NO DRY HOLES
Predictable High-Return Play
- Repeatable Well Results Across 120-Mile Lease Position
- 95% to 140% Direct ATROR* at Current Prices and Costs
- Expect to Decrease Well Costs with Self-Sourced Fracs
and NGLs) Across Confirmed 77% Oil, 88% Liquids (Crude, Condensate
520,000 Net Acres in the Crude Oil Window
Eagle Ford is Not a Typical Shale – Borderline Carbonate Reservoir
- Horizontal Data Indicates Significant Early Matrix Flow
- 30-Year Vertical History Confirms Long-Term Matrix Support
Large Spread Between Initial Reservoir Pressure and Bubble Point Pressure
- Confident in Oil Recovery Factor
- Wells Will Produce 40% of Reserves in First 5 Year
COMING SOON: DETAILS ON PSYCHOLOGICAL OPERATIONS BEING USED BY LANDMAN AND OPERATORS
Psychological operations are planned propaganda operations to convey selected information and indicators to LANDOWNER audiences to influence their emotions, motives, objective reasoning, and ultimately the behavior of landowners, City and County Governments, local civic organizations, other groups, and individuals in the local area.
The purpose of oil company psychological operations (PSYOP) is to induce or reinforce behavior favourable to the oil company objectives. They are an important part of the range of lease negotiations and economic activities available to the Oil Company. They can be utilized during both prior to and during actual lease negotiations. There are three main types: strategic, operational, and tactical. Strategic PSYOP include informational activities conducted by the Oil Company outside of the Eagle Ford arena, though many oil companies utilize a broad array of PSYOP prior to and during run up to leasing activity, they are conducted across the range of drilling operations, including during actual drilling and build out, in a defined operational area like the Eagle Ford to promote the effectiveness of the overall oil company campaigns and strategies. Tactical PSYOP are conducted in the area assigned to a specific landman service or oil company executive across the range of drilling operations to support the tactical mission against landowners.
PSYOP can encourage popular discontent with the opposition's leadership such as this blog, and by combining persuasion with a credible threat, degrade an adversary's ability to conduct or sustain useful information operations. They can also disrupt, confuse, and protract the adversary's decision-making process, undermining the truth..[When properly employed, PSYOP have the potential to lease large acreage blocks at very cheap prices by reducing the landowner's will to fight. By lowering the landowner's morale and then its efficiency, PSYOP can also discourage landowner's receiving fair compensation by landman and oil company actions by creating disaffection within landowner ranks, ultimately leading to surrender and the landowner leasing his land for utterly cheap prices, thereby depriving him of fair compensation.
If Lucas Energy is telling the truth and has a Eagle Ford well with a EUR of 1,611,000 BOE, that is big news. Huge EUR upgrades of over 1 million barrels of oil per well may be the norm for all Eagle Ford wells. This field does look like a Saudi Arabia oil field. Let's all hope so, it sure looks like that. Aren't Saudi oil wells from carbonate reservoirs somewhat similar to the geology of the Eagle Ford?
ReplyDeleteCrude oil at $90 today and the chart looks like $110 is near.
ReplyDeletePetro fracking to solve real or imagined problems associated with hydro fracking:
ReplyDeletehttp://globalwarming-arclein.blogspot.com/2010/12/petro-fracking-booms-nafta-oil.html
Keep up the good work, we need your information. Thanks.
ReplyDeleteOne can't help but notice how ill informed the Landman appears to be, or is he? Typically the phone call begins with an oral verification that you own some portion of the minerals, next,"Would you like to lease with us"? If your answer is yes, that leads to two proposals, the bonus price per acre they are willing to pay; and the amout of royalty that you (the land and mineral owner) are allowed to keep. The landmen that I have spoken do not seem to know anything about prices (call it bonus money) that involves one oil company selling or buying acreage from one of their peers. Those numbers far excede what the land owner received. We are not in the same club as Big Oil. Imagine how one feels after receiving a bonus check for say a whopping $3500 per acre and later learn your acreage was sold for $20,000 to $28,000 per acre !! It happens every day !! Information now being made available, proves how production at 1000 barrel of oil per well per day adds up, especially when crude oil is currently trading for $88 to $90 per barrel(some Eagle Ford wells are much greater than 1000 boe per day!) Do the math and you will quickly learn how minimal bonus checks are even when they are $30,000 per acre. DeWitt County Land Owner
ReplyDeleteI check this website every day for the latest Eagle Ford news. Thank you for providing this service. Nobody does what you do. For your information, everybody around Gonzales is talking about your blog.
ReplyDeleteYou make keeping up with what is going on in the Eagle Ford easy. Thanks for all you do.
ReplyDeletePetro Fracking is for real. If anyone is interested in learning more about it, there is a lengthy discussion about it's potential at http://globalwarming-arclein.blogspot.com/2010/12/petro-fracking-booms-nafta-oil.html
ReplyDeletecount me in as a believer.
The video has us worried. We leased our place a little over 3 years ago for a measly $150 an acre. My wife and don't appreciate the way we were taken advantage off. Can't do anything about it but it hurts knowing a nearby landowner got $12,000 per acre last spring.
ReplyDeleteTHIS LAND IS OUR LAND!
ReplyDeleteUnfortunately we are leased, but we definitely like your blog. My wife and I were a little slow to catch on to the internet and that cost us getting a good lease. Gossip around town is no substitute for information on a website like this.
ReplyDeleteMy family owns minerals near El Indio Maverick Co , what are the minerals @ worth to sale per acre or what should I lease it for if I keep them and % lease.
ReplyDeleteUnfortunately everybody I know has already leased their land. Most of them don't want to accept the fact that they got screwed. When I tell them about the information I read in here they just don't want to believe it. They see what is happening in town, the motels full, rv parks crowded, busy traffic on Esplanade and on Broadway, new people they don't know at HEB and Walmart, but they don't want to admit they got into a bad lease. I used to hear them talk about how they cut a hog in the butt and they got new trucks and acted like rich folks. They don't brag about thier oil deal now. Most of them look worried to me.
ReplyDeleteP T Barnum said it best, "there is a sucker born every minute." If the landman had not taken your land, somebody else would have. Count yourself lucky that you inherited land and that you were lucky enough to get a oil and gas lease, even a bad one is better than nothing. Sure, lot's of landowners signed for less that what their land is worth but what's new? They probably have a history of making poor decisions and the lease was just another bad decision in a lifetime of bad decisions.
ReplyDeleteMr. Green, you provide a very valuable resource for landowners. Thank you, from the bottom of my heart.
ReplyDeleteGladiator, I salute you.
ReplyDeleteI wish I had got a good oil and gas lawyer to help me when I leased my land. I did not get good advice. When I heard he was helping Geosouthern lease landowners who were holding out, I got sick to my stomach. I wish I could go back and do my lease over. My ignorance cost me a lot of money. Is hiding facts from landowners legal? Had I known things then I would not have leased.
ReplyDeleteI signed my lease last year for $2,500 per acre and 25% royalty. I was told that was top dollar and it was more than what others was getting. The landman told me I was just barely in the good area to get that top dollar. He made me feel I was lucky at the time. My lawyer said the same thing and drew up my lease and charged me $1,500 for it. The think the oil and gas lease form on this website is better than the one I paid $1,500 for. With prices much higher now I see why they were in a hurry to get me signed up. The landman told me anybody that don't sign will be left out and they go around them.I thought I was getting a good deal. Now I think I was just scared they might not lease me later.
ReplyDeleteMoney makes people do strange things. The oil company operators bring money into the community. A blind eye is turned to the things they do that hurts people, particularly landowners. Oil companies now have many people, leaders, businesses owners in the community eating out of their hands. We don't want to know the dark side of this development, we only want the jobs and money to be made. Spreading money around keeps people from telling the truth about how they operate. Our roads are ruined. Our elected officials serve the oil company now. We have sold our birthright.
ReplyDeleteMy mama told me, If you lay down with dogs you get fleas. I think some of those who are wanting too much to get rich from this oil boom are willing to make a pact with the Devil for a few pieces of silver.Some of these are not moral companies, but there are people in town who are blind to what is going on. The other places they have been there has been trouble. What makes anyone think that won't happen here.
ReplyDeleteThe Cuero newspaper never reported anything about the oil companies "flipping" leases for thousands of dollars more per acre than they paid landowners. Nothing negative about the oil companies ever appears in the local newspaper, only stuff like the oil company giving money to the museum and buying animals at the livestock shows. They talk about how our economy is better now, thats all they talk about. They have taken much from people in Cuero and this area who did not know better. I see through their public relation tricks. What happens when the water gets contaminated? Who do we see about that?
ReplyDeleteNewspapers have become dinosaurs. Nobody reads newspapers these day's except to find out the local gossip.
ReplyDeleteMany people don't have computers. They are the people with the land.
ReplyDeleteI got robbed and there ain't nothing I can do about it but complain.How did so many people let this happen? Did the big shots get taken along with the rest of us?Somebody knew there all this oil under the ground around here.Nothing fair about what happened to us.
ReplyDeleteplease keep doing the good work you are doing for landowners and residents many of us depend on you for eagle ford information what is going on in eagle ford it is so interesting thank you
ReplyDeleteVery useful information.
ReplyDeleteI read and post on a mineral forum. I can spot a landman right away. Their posts always follow a general format of complaing how landowners are "greedy" and asking for too much
ReplyDeleteand how the oil companies will leave them out if they don't come to accept the oil company terms right at that moment. They always insert this kind of response when they are responding to any kind of post of any kind, they always get this stuff in there along with their more general innocuous response to a posting. Then their groupies will post right away and chime in with their agreement. It a pretty straightforward game plan and pretty easy to spot once you get the hang of it. Actually I think in most cases the groupies are just the same person using more than one identity to reinforce the landman's spiel. Be watchful for this kind of strategy and when spotted, just politely tell them you need to go somewhere, so you can get away from their smooth talking.
Remember, the mineral rights you own are yours just like your bank account is yours. Treat it with the same deliberation you would if you were negotiating the value of your bank account. It's your asset don't let it be stolen from you. Do your research and make sure you are indeed getting the value that is yours.
Dude, all that drilling rig noise and diesel smell and lights all night long must really suck. I drive by that house. Who lives there? Did they move out while the drilling goin on?
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