The Eagle Ford Shale in South Texas has seen incredible growth over the year, and signs point toward an even greater expansion–including into Louisiana, noted Global Hunter Securities (GHS) in a December 12, 2011 note to investors.
Beginning a series of major US unconventional play overviews, GHS offered data on the Eagle Ford this week, showing the growth of the play into Louisiana as Indigo Minerals reportedly completes its first horizontal Eagle Ford well in Rapides Parish, Louisiana.
In the first horizontal test of the play in the state, The Bentley Lumber 34 No. 1H reportedly tested at 543 boepd (80% oil) from a 4,400’ lateral completed with a 15-stage fracture stimulation. As noted in GHS’s report, the well is located east of the geologically comparable (lithologically different) Tuscaloosa Marine Shale play which sits along the Louisiana/Mississippi border.
Despite the recent well in Louisiana, the Eagle Ford Shale is still known for its liquids-rich opportunities in South Texas. Since the beginning of the year, the play has doubled– up 107 rigs, accounting for 44% of the entire US rig count's growth, noted GHS.
Chesapeake Energy remains the most active oil directed operator in the region and is currently running 26 horizontal wells in the play, according to Smith Bits and GHS estimates. Petrohawk is leading the way as a gas directed operator, running 11 horizontal rigs currently. As GHS analysts note, the ten largest Eagle Ford operators have put 70% of all incremental rigs to work, with Helmerich & Payne benefitting the most. The driller has increased its rig count in the play by more than double and currently holds a 27% share in the play.
The rig count in the play currently stands at nearly 214, but an increase to 250 is possible as Helmerich & Payne and other drillers anticipate delivering more newbuilds in 2012, GHS continued.
Assets in the region continue to be viewed as as both money makers and good investments. One large landowner, Anadarko Petroleum, closed a $1.6 billion joint venture in the play with KNOC in the second quarter of the year. As James Hackett told OGFJ in August, the deal allows the company to create value out of its properties and put capital towards advancing other projects.
Other companies, like Rosetta Resources, are allocating majority amounts of capital spending to activity in the play.
Outside the world of operators of land drillers, other companies with exposure to the play stand to benefit from its continued growth. As GHS points out, companies like CARBO for proppant, Forbes for well-servicing and fluid handling, Lufkin for artificial lift, and Robbins & Myers for power sections are all set up for opportunities stemming from Eagle Ford expansion activities.
