By now, you might have heard of the Pearsall Shale or Eaglebine. These ancillary plays to the Eagle Ford have attracted some attention.
The Eaglebine is more porous than the Eagle Ford, which provides for some drilling advantages.
The Pearsall Shale is Cretaceous in age and sits below the Eagle Ford.
I wanted to investigate whom these plays were attracting and when activity started to pick up. What are these operators planning for 2014 in the area?
Lets Dig into the Data
I looked at permitting data from the Drillinginfo website from 2010 to present in both reservoirs. What I discovered was a surge of activity from 2011 to 2012 for both the Pearsall Shale and the Eaglebine.
In the Eaglebine, the number of permits between 2011 and 2012 increased nearly 99% or 70 to 139 permits. The Pearsall also experienced an increase. The number of permits increased in the Pearsall in the same period from 13 to 35, 169%. This uptick determined what date I chose when researching production. Production data shows who current operators are in the area.
Who are the Top Operators?
Eaglebine Production Search:
Pearsall Production Search:
What are the Top Operators Doing?
There are several operators active in the area, as seen above. I am going to focus on the top two (by total count of API number) publically traded companies of each play. Let us examine what these operators are planning for the plays in 2014 and a few data points from 2013.
• Have ~60,000 net acres in El Halcón, their assets that are an “extension of the Eagle Ford Play”
• These assets are 100% operated
• Proved reserves in El Halcón as of 12.31.2012 were 2.5 MMboe
• Had 3-4 Active Rigs in 2H13
(Halcón Barclays CEO Energy-Power Conference, September 12, 2013)
Halcón Cross Section of El Halcón:
Cabot Oil & Gas (Pearsall):
• Cabot has a Joint Venture regarding the Pearsall with Osaka Gas Co., Ltd. Osaka was sold 35% Non-operated working interest in 50,000 Net acres in Atascosa, Frio, LaSalle and Zavala counties.
• Within the JV, four rigs were initially planned, adding 2 in 2012, 1 in 2013, and 1 in 2014.
• Cabot allocated 30% of their $1.1 Billion- $1.2 Billion 2013E capital program to the Eagle Ford. Marmaton, and Pearsall
• Cabot is allocating 24% to the Eagle Ford of their $1.375 billion to $1.475 billion 2014E capital Program
(Cabot Oil and Gas/Osaka Pearsall JV Presentation and Cabot BAML 2013 Global Energy Conference 11-21-2013)
Pearsall Shale and Eaglebine Plays In Summary
These are just two examples of who is putting some effort into the Pearsall Shale and Eaglebine. It will be interesting to see how these ancillaries fair for 2014. Activity did spike in permitting in 2012 and 2013 for both, but the true story will be told in 2014 with production.
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