Wednesday, August 29, 2012

Guadalupe-Blanco River Trust

By granting a bequest of a conservation easement to Guadalupr-Blanco River Trust landowners can ensure that their property will be managed according to their wishes well beyond his or her lifetime. A conservation easement permanently limits a property's uses in order to limit development and ensure that the property is reserved for farming, grazing land, wildlife habitat or cultural values.  Landowners can stipulate no oil and gas development. Tax incentives may be available to landowners. It's worth giving a serious thought. 

Friday, August 24, 2012

DUG Eagle Ford

      Last year I had the incredible good fortune to attend the DUG Eagle Ford conference in San Antonio and I heartily endorse, recommend and encourage all landowners who can to attend the conference this year.  The direct benefits you will receive is a crash course education about what is going on in the Eagle Ford and Pearsall Shale.  The speakers are highly regarded industry leaders that give you not only a review of where we are in the play but also an idea where Eagle Ford is heading.  The exhibitor hall is immense, representing virtually all aspects of drilling and production technology and you get the opportunity to visit with them. The $895 investment you make to attend is a very small price to pay for the Eagle Ford education you will receive. If you own a Eagle Ford mineral interest you own something worth millions of dollars and you owe it to yourself and your family to attend DUG Eagle Ford. 

DUG Eagle Ford
Thousands have already registered;

Shouldn't your team get the same advantage?

Don't miss the world's biggest Eagle Ford conference Petroleum producers, midstream operators, finance and service professionals are converging in San Antonio this October for the 4th annual DUG Eagle Ford conference and exhibition. Shouldn’t you and your team be there to share the intelligence and make new business connections? View Agenda button
An unparalleled slate of industry leaders is presenting and nearly 350 exhibitors are displaying their technologies. The biggest players on the scene, both upstream and midstream, will be attending. Once again, this event is the world’s largest Eagle Ford conference for the same reasons: It's the single best place to learn "what's next" for one of the most exciting regions in today's oil & gas business.
Featured speakers include: View full speaker line-up
David Roberts
David E. Roberts Jr.
Marathon Oil Corp.
Tim Dove
Timothy L. Dove
President and COO
Pioneer Natural Resources
Bruce Vincent
Bruce H. Vincent
Swift Energy
DUG events are known for standard-setting programs and the 2012 DUG Eagle Ford conference continues that tradition. Beyond monitoring Eagle Ford development progress, this year's upstream speakers will examine outlooks for newer plays like the Buda, Pearsall, Austin Chalk, Olmos, Escondido and Woodbine, where horizontal drilling and multi-stage fracturing are yielding improved results.
Speakers in the midstream program track — new for 2012 — will detail their plans for adding takeaway and treatment capacity. And one registration gives you access to both program tracks. Together, you get a full-spectrum perspective on where the opportunities lie ahead.
Register for the DUG Eagle Ford Conference Now
Go online to check the agenda and register today. Interested in bringing your entire team? Register 4 or more and receive $100 off each registration – just click the link when you register online.
See you in San Antonio!

Hart Energy Conference Team

Thursday, August 23, 2012

Drilling For Oil In The Unconventional Eagle Ford Shale

Drilling for crude oil in the unconventional Eagle Ford shale is very much still in it's infancy. We are in the very early innings. The Eagle Ford has been know to be the source for conventional natural gas and crude oil reserves in the area for decades. Technology is improving at a very rapid pace and horizontal drilling techniques continue to improve exponentially. Down spacing is occurring at 40 acres per well.  EURs are going up substantially. Operators have rushed in to lease the best acreage in the six largest shale basins that comprise 57 million acres. It's going to take a very, very long time to develop all that acreage, perhaps a century experts are saying.
Success in drilling in the Barnett, Haynesville and Marcellus has caused the gas market to collapse. Operators all want to drill on good oil prospects today like the Eagle Ford volatile oil window. The oil window is where all the action is today and that's where operators are allocating all of their capital.

Little noticed in all that is going on in the Eagle Ford is the way that it is shaping the future for the petrochemical industry. Many large refineries and chemical plants are being planned and announced for the Texas Gulf Coast. Pipelines are going in everywhere along the entire length of the Eagle Ford. More pipelines are being announced monthly.

The long and short of the Eagle Ford is that all liquids window acreage is extremely valuable. Mineral interest to all depths and horizons is incredibly valuable. Rosetta Resources claims EURs of 1.67 Million BOE per well at 55 acre spacing. 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 selling for well over $100,000 per acre.

Friday, August 10, 2012

Monster Wells Being Drilled Near Hochheim

Eagle Ford Hochheim Area "Monster" Wells

 The CEO of EOG Resources recently made official what everyone already knows, that the over-pressure volatile oil window around Hochheim is far and away the most productive area of the Eagle Ford. One of the Boothe wells came in recently at 4,820 barrels of oil per day with 972 barrels of NGLs and 4.5 million cubic feet of natural gas per day. The conversion of NGLs and gas makes the well officially produce 6,642 barrels of oill equivalent per day. Not bad.

   Operators in the volatile oil window along Gonzales/DeWitt counties are actively pursing a down spacing drilling program. Rosetta Resources is even experimenting with 55 acre wells. The Rosetta presentation below shows what looks to me like their best case expectation of 5 million barrels of oil per 195 acres. I did the math and it came out to 25,641 boe per acre if I divided correctly.

Friday, August 3, 2012

EOG Resources announces “Monster” Eagle Ford Wells
Oil & Condensate daily IP near 6,000 barrels per day + 4.5 Mmcfd natural gas
During the 2Q conference call on 8/03/2012 CEO Mark Papa announced that EOG had drilled 16 “monster” wells in the Eastern portion of the Eagle Ford near Hochheim.
In the South Texas Eagle Ford, EOG drilled its best well to date. The Boothe Unit #10H in Gonzales County began initial production at 4,820 barrels of oil per day (Bopd) while an offset well, the Boothe Unit #9H, had an initial production rate of 3,708 Bopd. The Boothe wells produced 972 and 527 barrels per day (Bpd) of natural gas liquids (NGLs) and 4.5 and 2.4 million cubic feet per day (MMcfd) of associated natural gas production, respectively.