It has been tough to analyze Eagle Ford activity in the Maverick Basin. It has been tougher than the Sugarkane Corridor, Hawkville, or even the EOG oil window. One of the problems is that the area is dominated by only a few, relatively quiet, players (Chesapeake notwithstanding). Above is a map of 2010 permits. The top 5 account for a disproportionate amount of the activity.
Past Eagle Ford production out of this area has been somewhat sketchy, with many of the older Anadarko wells showing signs of the science and exploration stage. Well level production did not look very good, I suspect due to the learning curve. Not until recently has Anadarko been drilling productive infill wells throughout their acreage. CML is drilling the Austin Chalk, while Newfield and Shell have been pretty mum about their operations. That is until now.
Newfield finally gave an update today regarding their Eagle Ford program. They quoted 24-hour IPs of 400-900 BOEPD, with an average of 630 BOPED. They also quote 30-day gross production of approximately 400 BOEP, and EURs in the 200-400 MBOE range.
There were a few other interesting points. Newfield said the oil is light oil, with API gravity of 30-50 across their acreage. There has been some talk of bitumen in their Eagle Ford. Newfield acknowledged the bitumen (heavier than 10 degree API) in their last conference call, but stated that there are other pay zones and that parties without direct knowledge of this should probably not comment on it.
They state their producible Eagle Ford resides in the lower Eagle Ford. This speaks to the heterogeneity of this trend on a large scale. To the east some wells are being produced from the upper zone. I have spoken to a few geologists who say that the Maverick Basin Eagle Ford is significantly different from the other areas and that production strategies as a whole will vary from county to county based on the differences in facies.
Another positive sign from Newfield is an agreement with a major service provider to provide for the company’s frac needs. This is important as we are all aware of the frac shortages and price hikes.
Finally, they commented that they are testing the Pearsall Shale. I believe this is a dry gas zone that provides stacked pay potential for the Maverick Basin. It is nice to have Newfield shed some light on the Maverick Basin Eagle Ford.
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