Sugarloaf Gas and Condensate Project >> Eagle Ford Shale – Activity & Results
Acreage held within the Eagle Ford Shale
A sample of the companies who own acreage within the Eagle Ford trend is represented below.
Quotes from these companies in relation to the US shale industry and the rise of the Eagle Ford shale.
“Unconventional gas is a complete game changer in the US, it probably transforms the US energy outlook for the next 100 years”
(Source: Tony Hayward, Chief Executive Officer ,BP Plc, January 2010)
“Advances in horizontal drilling completion technologies have driven a fundamental shift towards shale and unconventional resources in the past four years”
(Source: Chesapeake Energy Feb, 2010)
“The Eagle Ford shale is galloping into the ranks of the nation’s top resource plays, due to rich gas, impressive flows and remarkably consistent results.....In August 2009 there were 11 rigs operating. By February 2010 some 45 rigs reported operating across the trend.”
(Source: Oil & Gas Investor March 2010)
Petrohawk Energy Corporation (NYSE:HK)
The largest amount of publicly reported information close to Sugarloaf is from Petrohawk with their acreage being located directly to the southwest and northeast of the Sugarkane Field following the Eagle Ford trend.
Petrohawk has reported a budget of US $390M for 2010 (up from US$120M for 2009) for the Eagle Ford play with 82 wells projected to be drilled this year with 8 rigs to be operating on Petrohawk’s Eagle Ford acreage by mid 2010.
In February 2010 Petrohawk reported they have 22 operated wells on production in their most southern Eagle Ford Share area, the ‘Hawkville’ Field. Of these, 18 wells have production history in excess of 60 days and the reported average initial rate of production from these wells over the first 60 days was 6.6 mmscfe/d when calculated on a 12:1 equivalence basis. The two Sugarloaf wells with similar production history have an average initial rate of production over the first 60 days of 10.3 mmscfe/d when calculated on a 12:1 equivalence basis.
Petrohawk has continued to acquire land on trend. This field, the ‘Black Hawk Field’, is to the North East of Sugarloaf. Petrohawk has reported its acreage position of approximately 53,000 net acres. In March and April 2010, Petrohawk released the initial production rates for its two horizontal wells in this field as follows:
Petrohawk report a total net Eagle Ford Shale acreage under lease of approximately 350,000 acres
Petrohawk estimate an average recovery of 5 to 6 Bcf / well and have achieved a significant reduction in well costs over the course of the drilling program to date.
Petrohawk have also stated that core analysis indicates that the Eagle Ford is one of the highest quality shale reservoirs discovered to date in the US and that it is proving to be as important as their Haynesville interests where they are acknowledged as one of the most successful participants to date.
A sample of well results within the Eagle Ford Shale Trend
