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Latest Activity: Aug 2
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Sanchez Energy is making plans for 2018 that include redicing drilling activity and cutting spending by $75 million to $100 million.
Sanchez reported its second quarter results last week that included increased revenues and a net income of $46.3 million, up from $9.7 million during the first quarter of 2017.
The Company achieved record production from its Comanche area in Dimmit, LaSalle and Webb Counties. The acquisition of the Comanche assets in March was instrumental in these record production levels.
“In July 2017 we announced our intention to reduce our 2018 capital spending by approximately $75 million to $100 million, compared to our original $500 million guidance. This reduction in capital spending, together with our strong liquidity position and bank of 30 wells against our 2017-18 Catarina drilling commitment, provides us with a considerable amount of financial and operating flexibility as we look to execute our plans over the next 12 to 18 months, and drive shareholder value.”— Tony Sanchez, III, Chief Executive Officer
Sanchez is currently running seven gross rigs in the Eagle Ford; five in Comanche and two in Catarina. Other second quarter highligts include:
The Eagle Ford Shale rig count remained flat this week with 89 rigs running across our coverage area by midday Friday.
In recent Eagle Ford Shale news, Lonestar Resources is hitting a stride for growth after its recent Eagle Ford acquisitions.
A total of 946 oil and gas rigs were running across the United States this week, three less than last week. 182 rigs targeted natural gas (one more than the previous week) and 763 were targeting oil in the U.S. (five less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 459 of the rigs active in the U.S. were running in Texas.
Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.
Eight rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $2.89/mmbtu.
81 Eagle Ford rigs were targeting oil with WTI oil prices at $48.51.
A total of 86 rigs are drilling horizontal wells, zero are drilling directional wells and three are vertical.
Karnes County leads activity in the region with 18 rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.
Eagle For Rig Count by County-August 19, 2017
What is the Rig Count?
The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.
Lonestar Resources is hitting a stride for growth after its recent Eagle Ford acquisitions.
Lonestar reported its second quarter financial and operational results earlier this month where company executives said they expect to accelerate drilling activity on the 30,210 acres they purchased in June.
“On June 15, we closed a pair major Eagle Ford Shale acquisitions in the quarter that scaled the company significantly in terms of EBITDAX, reserves, and production. After post closing adjustments, Lonestar paid total consideration of $90 million in cash and approximately 2.7 million shares of Lonestar series B preferred stock.”— Frank Bracken - CEO
During an earnings call, the CEO shared about the company's '10 and 100' plan to maximize the new assets. The plan would generate production in excess of 10,000 BOE a day and EBITDAX in excess of $100 million in 2018. Based on current trends, if the company continues to drill the same kind of wells on its core properties, they will be successful.
In June, Lonestar closed on the purchase of 30,210 gross acres in the Eagle Ford Shale region of south Texas. The $116.6 million deal included properties in Karnes, Gonzales, DeWitt, Lavaca and Fayette Counties.
After this new purchase, Lonestar has 72,244 gross acres located in the Eagle Ford. These assets will be foundati0olnal to the company's growth over the next four years.