Post Tagged with: "Eagle Ford Shale"

Lonestar Boosts Proved Reserves to Over 100 Million BOE

Lonestar Boosts Proved Reserves to Over 100 Million BOE

Lonestar Resources US Inc. (NASDAQ: LONE) (together with its subsidiaries, “Lonestar,” “our” or the “Company”) announced that its proved reserves increased to a record 100.6 million barrels of oil equivalent (“MMBOE”) at December 31, 2019 calculated using SEC guidelines. All of the Company’s proved reserves are located in the Eagle Ford Shale.

Hunt Oil seeks latest fortune in Permian Basin

Hunt Oil seeks latest fortune in Permian Basin

Chron A storied oil company that got its start in East Texas is seeking its latest fortune in the Permian Basin of West Texas. Founded in in 1934, Hunt Oil Co. drilled its first oil wells in the Piney Woods of East Texas, and over the decades it developed projects around the globe. Closer to home, the independent and privately held Dallas oil company filed for seven drilling permits with the Railroad Commission of Texas over the past week. Located in Glasscock County, the horizontal wells target the Spraberry field at total depths of 7,800 to 9,000 feet. Hunt filed for 80 drilling permits in 2019. All but one were for wells in the Permian Basin. The company’s wells produced nearly 11.5 million barrels of crude oil and more than 31.2 billion cubic feet of natural gas from January to November 2019, Railroad Commission records show. Denver oil company Centennial[Read More…]

Equinor Site Remains Shut In Following Drilling Rig Fire in Karnes County

Equinor Site Remains Shut In Following Drilling Rig Fire in Karnes County

From The Houston Chronicle A natural gas well belonging to the Norwegian oil giant Equinor remains shut in following a weekend fire at one of its drilling sites in Karnes County. The fire happened at Equinor’s Neller-Runge 1-Runge 2 lease off FM 885 a few miles south of Runge around 3:45 a.m. Saturday, the Karnes County Sheriff’s Office reported. Crews brought the fire under control in about three hours time. No injuries were reported but 11 homes were temporarily evacuated. The cause of the fire remains under investigation but Karnes County Sheriff Dwayne Villanueva said the blaze is believed to have started by an static electricity discharge aboard a drilling rig belonging to the oilfield service company Nabors. Located in a rural area of the county, a bright fireball from the blaze created a glow that could be seen for miles in the early morning darkness. “If you’ve ever seen[Read More…]

Carrizo Oil and Gas Purchases 16,500 acres in the Delaware Basin; Announces $5.6 Million Net Income for Q3 2017

Carrizo Oil and Gas Purchases 16,500 acres in the Delaware Basin; Announces $5.6 Million Net Income for Q3 2017

On November 7, 2017 Carrizo Oil and Gas, Inc. (ticker: CRZO) announced the company’s financial results for Q3 and provided an update on current operations. Carrizo reported third quarter of 2017 net income attributable to common shareholders of $5.6 million, or $0.07 per basic and diluted share, compared to a net loss attributable to common shareholders of $101.2 million, or $1.72 per basic and diluted share in the third quarter of 2016. For the third quarter of 2017, Adjusted EBITDA was $132.8 million, an increase of 46% from the prior-year quarter due to higher production volumes and commodity prices. According to the company’s press release, production volumes during the third quarter of 2017 were 5,080 MBoe, or 55,224 Boe per day, an increase of 35% versus the third quarter of 2016. Operations Delaware Basin Carrizo closed their most recent Delaware acquisition in the third quarter of 2017.  Carrizo paid Exl Petroleum Management $648 million to acquire 16500[Read More…]

November 10, 2017 - 3:50 pm Closing Bell Story, Earnings, Oil and Gas 360 Articles
Repsol, Statoil Announce Asset Swap Involving Eagle Ford and Norway Positions

Repsol, Statoil Announce Asset Swap Involving Eagle Ford and Norway Positions

No oil and gas companies were in attendance for Major League Baseball’s winter meetings (baseball’s equivalent of Christmas with its free agent signings, discussions, swaps and trades), but two industry giants independently agreed to a swap of their own on December 11, 2015. Norway’s Statoil (ticker: STO) and Spain’s Repsol (ticker: REPYY) will trade acreage positions in a non-cash, straightforward exchange. Much of the swaps on Repsol’s side stem from its $13 billion acquisition of Talisman Energy last year. Repsol’s global footprint spanned more than 50 countries upon completion. The Madrid-based E&P now plans on divesting $7.1 billion as part of its 2016-20 strategy, with a focus on increasing value and efficiency in a depressed commodity environment. The company gains 500 million euros in positive free cash flow in the 2015-17 period resulting from the latest transactions. According to releases by both companies, Repsol and Statoil swapped various interests and[Read More…]

Lonestar Resources Primed for Further Production Increases with Attractive Hedges in Tow

Lonestar Resources Primed for Further Production Increases with Attractive Hedges in Tow

Company Production Record in October Lonestar Resources (ticker: LNREF) announced a company production record in its Q3’15 results, and the upward volume trend is expected to continue through the end of the year. Lonestar averaged production of 6,614 BOEPD in Q3’15, representing a 14% increase sequentially, with volumes exceeding 7,500 BOEPD in the month of October alone. The October achievement “[sets] the stage for another production record in the fourth quarter of 2015,” said management in a press release. Net oil and gas revenues for Q3’15 were $30.2 million, a decrease of only 5% compared to Q3’14, even though realized wellhead prices have fallen by 53% over the same time frame. Lonestar benefited from $8.8 million in revenue from its crude oil hedges, offsetting the majority of the oil price decline. Crude oil provided 89% of overall revenue in the quarter. The significance of its hedging plan continues into 2016,[Read More…]

Lonestar Resources Projecting Volume Records from Eagle Ford Shale

Lonestar Resources Projecting Volume Records from Eagle Ford Shale

CEO Bracken: “The Time has Come” for Acquisition Opportunities Lonestar Resources (ticker: LNREF), a Fort Worth-based exploration and production company with operations focused on the Bakken and Eagle Ford shales, expects to set company production records in Q3’15 based on wells that continue to exceed third party estimates. Q3’15 volumes are forecasted to average 6,500 BOEPD, marking respective increases of 12% and 39% compared to Q2’15 and Q3’14. Its quarterly exit rate is expected to surpass 7,000 BOEPD, setting another company record. Based on the higher than expected rates, LNR management is increasing its 2015 production guidance to a midpoint of 6,100 BOEPD from its previous midpoint estimate of 5,900 BOEPD. Achieving the midpoint of its revised 2015 guidance would represent a year-over-year increase of 36%. Powered by the Eagle Ford Lonestar’s Eagle Ford Shale position, consisting of 34,360 net acres, contributed about 88% of volumes in Q2’15. Its Western Eagle[Read More…]

Sanchez Production Partners Acquires Eagle Ford Midstream Assets for $345 Million

Sanchez Production Partners Acquires Eagle Ford Midstream Assets for $345 Million

Sanchez Production Partners (ticker: SPP), a midstream-focused Master Limited Partnership, increased its footprint in the Eagle Ford with a $345 million cash acquisition announced on September 28, 2015. The assets, purchased from Sanchez Energy Corporation (ticker: SN) consist of 150 miles of gathering lines and associated infrastructure in four gathering and processing facilities. The transaction is expected to close in October 2015. The assets are located in the western part of SN’s Catarina asset, which has been the target area of Sanchez’s recent operations. In accordance with the sale, SN will engage in fixed gathering rates for an initial 15 year term. The first five years will require minimum delivery commitments of 10.2 MBOPD and 142 MMcf/d. The Catarina asset as a whole produced 71% of SN volumes in Q2’15, equaling about 38.2 MBOEPD. The latest acquisition is the second to be announced between SPP and SN – the first[Read More…]

September 28, 2015 - 6:47 pm Analytics, Mergers & Acquisitions, MLPs, Oil and Gas 360 Articles
Sanchez Energy Capex Cuts are No Match for Higher Guidance in Q2’15 Results

Sanchez Energy Capex Cuts are No Match for Higher Guidance in Q2’15 Results

Well Efficiencies, Cost Improvements Lead to Adjustments Sanchez Energy (ticker: SN) raised its guidance for the second time in less than a month in its Q2’15 earnings release, issued on August 10, 2015. Revised 2015 volumes estimate production at 46 to 50 MBOEPD (69% liquids), up from the previous estimate of 44 to 48 MBOEPD announced in an operations update on July 15. Its latest guidance is 14% higher than the 2015’s first forecast of 40 to 44 MBOEPD and represents a midpoint production increase of 57% compared to fiscal 2014. Average Q2’15 volumes amounted to 53.9 MBOEPD. The upwards production adjustment comes despite a $50 million reduction in SN’s 2015 drilling program. Its latest forecast places expenditures at $550 to $600 million, while its 2016 program plans to spend only $250 to $300 million while maintaining a flat production profile. Analyst firms are projecting the oil mix to decline[Read More…]

By the Numbers:  Goodrich Petroleum Deals Portion of Eagle Ford Assets; Retains Future EF Upside and Provides Capital Liquidity

By the Numbers:  Goodrich Petroleum Deals Portion of Eagle Ford Assets; Retains Future EF Upside and Provides Capital Liquidity

Acreage Value Increase of 441% Since Initial Purchase in 2010 Goodrich Petroleum (ticker: GDP) sold its proved reserves and approximately 13,000 net acres in the Eagle Ford Shale for $118 million to an undisclosed buyer, the company said in a July 27 news release. The assets are located in LaSalle and Frio Counties of Texas and include Q1’15 production of 2,850 BOEPD (75% oil), and are expected to close by September 4, 2015. A July 2015 presentation listed total proved reserves as of December 31, 2014 of 10.5 MMBOE. The company is scheduled to release its Q2’15 results on August 5, 2015, and will present at EnerCom’s The Oil & Gas Conference® 20 on August 17. GDP holds one of the largest positions in the Tuscaloosa Marine Shale and is expected to turn six wells online in Q3’15. By the Numbers Based on the $118 million sale price, the deal[Read More…]

Sanchez Energy on the Rise in the Eagle Ford Shale

Sanchez Energy on the Rise in the Eagle Ford Shale

Quarter-over-quarter daily production increases by 19%, current volumes highest in company history Increased efficiency, shorter drilling days and wells exceeding type curves prompted Sanchez Energy (ticker: SN) to upwardly revise guidance for the second straight quarter, the company said in an operations update on July 15, 2015. Current volumes are the highest in company history. The producer, operating almost exclusively in the Eagle Ford Shale, reported Q2’15 production of 53,920 BOEPD (69% liquids), an increase of 19% compared to Q1’15’s average of 45,217 BOEPD (71% liquids). Sanchez is now projecting full-year guidance of 44,000 to 48,000 BOEPD – a far cry from its initial 2015 guidance of 40,000 to 44,000 BOEPD. The company has bumped up its forecasted output by 2,000 BOEPD in each of its last two operations releases. KLR Group believes another jump is possible, saying, “Preliminarily, we expect to remain above full year guidance at 50,000 to[Read More…]

Penn Virginia Ramping Up Eagle Ford Operations

Penn Virginia Ramping Up Eagle Ford Operations

Penn Virginia Corp. (ticker: PVA) has spent the last few years building up its position in the Eagle Ford Shale of South Texas, and production increases combined with decreasing completion costs were the highlights of the company’s Q1’15 earnings release. The quarterly update, issued on May 11, 2015, reported average volumes of 24,721 BOEPD, with the Eagle Ford (EF) accounting for 21,390 BOEPD (87%) of the mix. On an absolute basis, production compared to Q4’14 climbed 16%, while EF volumes increased by 23%. Penn Virginia currently holds approximately 145,500 gross (104,300 net) acres in the prolific play and believes it holds 12 years of drilling inventory. 2015 guidance is slated at $325 to $370 million, with approximately 96% slated for Upper Eagle Ford development. Production from South Texas has nearly doubled on a year over year basis. Eagle Ford Specifics “While continuing to increase production, our primary focus has been on cutting[Read More…]

Sanchez Energy Raises Guidance, Escalates Activity in the Catarina

Sanchez Energy Raises Guidance, Escalates Activity in the Catarina

Sanchez Energy (ticker: SN) revised its 2015 volume guidance by 2 MBOEPD as a result of higher than expected production volumes and wells tracking above estimated ultimate recovery (EUR) rates, the company said in its Q1’15 earnings release. The Eagle Ford-focused E&P now expects 2015 production to average 42 to 46 MBOEPD, up from initial estimates of 40 to 44 MBOEPD. This includes the recent asset transaction of 1 MBOEPD to Sanchez Production Partners (ticker: SPP), its master limited partnership vehicle. Q1’15 volumes, released separately from its financial results, were finalized at an average of 45.2 MBOEPD. The company’s official Q1’15 results were released roughly three weeks later, and production has climbed to a record of 50 MBOEPD (72% liquids). The surging volumes led to management boosting its 2015 guidance. Its current production rate is more than 83 times greater than its 0.6 MBOEPD of volumes when the company filed[Read More…]

Lonestar Resources Announces Increases Across the Board in Q4’14 Results

Lonestar Resources Announces Increases Across the Board in Q4’14 Results

Lonestar Resources, (OTCQX: LNREF, ASX: LNR), an oil and gas company with assets in the Eagle Ford and Bakken shales, reported its Q4’14 earnings on February 2, 2015. The Fort Worth-based E&P reported several company records despite the challenges associated with one of the most difficult quarters many producers have seen in years. Q4’14 Results Lonestar averaged net volume of 5,816 BOEPD (87% liquids) in Q4’14, which represents respective increases of 25% and 54% compared to Q3’14 and Q4’13.  EBITDAX reached $27.3 million in Q4’14 along with net income of $25.4 million, which are quarter-over-quarter increases of 17% and 33%. In the earnings release, LNR management credited the gains to the performance of new wells in its central Eagle Ford position. Hedges resulted in an unrealized gain of $14.1 million in the quarter, and the company increased its hedge position for 2015 to cover 2,496 BOEPD for an average strike[Read More…]

The Eagle Ford Shale has come a Long Way

The Eagle Ford Shale has come a Long Way

The Energy Information Administration (EIA) released an updated geologic layout of the Eagle Ford Shale this morning, detailing the play’s thickness, footprint, elevation, and initial gas to oil ratios (GORs). The industry, as they do with all shale plays, continues to progress in unlocking the “code” of the Eagle Ford. The sprawling South Texas field has transformed from an emerging play to a region that single-handedly outproduces four OPEC countries on a monthly basis. The evolution of the shale can be seen in the EIA video below. In the latest EIA report, the details are described as follows: “Deeper wells (up to 15,000 feet) to the southeast have higher initial GORs, or a relatively greater share of natural gas, while the shallower wells to the northwest (below 6,000 feet) have lower initial GORs, or a relatively greater share of oil. In the eastern half of the play, the wells that[Read More…]

January 21, 2015 - 6:01 pm Fracing, Oil and Gas 360 Articles, Politics & Opinions
Sanchez Energy Updates Catarina Operations, Balance Sheet

Sanchez Energy Updates Catarina Operations, Balance Sheet

Sanchez Energy Corporation’s (ticker: SN) development of its Catarina assets in the Eagle Ford (EF) are exceeding company expectations, SN management said in a news release on December 10, 2014. The Catarina, acquired from Royal Dutch Shell (ticker: RDS.B) in May 2014 for a price of $639 million, instantly doubled Sanchez’s asset base and production volumes. Announced production is currently 45 MBOEPD, which exceeds the company’s previous estimates of 40 to 44 MBOEPD for Q4’14. The current volume is a company record and 16% higher than average Q3’14 production of 38.6 MBOEPD. Catarina Update The majority of Shell’s development in the Catarina were focused on the Upper EF formation, and nine wells previously completed by RDS averaged 24-hour and 30-day rates of 1,402 BOEPD and 1,200 BOEPD, respectively, according to SN’s Q3’14 report. Nine more Upper EF wells completed by SN averaged 30-day production rates of 1,067 BOEPD, while three[Read More…]

Lonestar Resources Seeks to Expand Eagle Ford Position in New Commodity Environment

Lonestar Resources Seeks to Expand Eagle Ford Position in New Commodity Environment

Lonestar Resources (OTCQX: LNREF, ASX: LNR) is an oil and gas company in Fort Worth, Texas, focused on acquiring and exploiting the Eagle Ford Shale. The company has doubled its acreage on a compounded year-over-year basis since 2012 and is listed on both the Australian Stock Exchange (following a January 2013 merger with Amadeus Energy) and the U.S. based OTCQX since June 2014. The latest listing provided access for American stockholders to trade shares in American dollars. Growth Rising in a Constrained Market Lonestar Resources revised its 2015 capital expenditures program in a news release on December 9, 2014. Its new budget will be in the range of $85 to $101 million, down approximately 35% from its original guidance of $135 to $150 million in its Q3’14 quarterly results. Lonestar expects to complete 15 to 17 gross wells in 2015, based on a range of $65 to $80 in West[Read More…]

Sanchez Energy Reinforced by “Significant” Increase in Borrowing Base

Sanchez Energy Reinforced by “Significant” Increase in Borrowing Base

Sanchez Energy Corporation (ticker: SN), a rapidly expanding E&P targeting the Eagle Ford Shale, announced an increase of $287.5 million to its borrowing base in a press release on November 20, 2014. Per the terms of the commitment, SN has an available borrowing base of $650 million (up from its initial base of $362.5 million) with an elected commitment of $300 million. The company has $1.5 billion under its first lien revolving credit facility. “We have significantly expanded our available borrowing base under our revolving credit facility as a result of strong reserve growth through the drill-bit and acquisition activity as well as through converting proved undeveloped and probable reserves into proved developed reserves,” said Michael Long, Chief Financial Officer of Sanchez Energy, in a statement. The company had approximately $900 million in liquidity ($600 million cash and cash equivalents with $300 million elected commitment) at the time of its Q3’14[Read More…]