Play Alert: Eagle Ford unconventional oil success extends into eastern Texas in Aguila Vado field

Eagle Ford shale wells in East Texas now test over 1000 bod/well and permitting rises sharply.

Editor’s Note: Periodically, this blog will cover selected milestones in unconventional play development, chosen from IHS Energy Editorial coverage of industry activity.

Eagle Ford Shale production has begun expanding along the so-called “Eaglebine” fairway, named after companies began completing in both Eagle Ford and Woodbine zones, but generally south of the East Texas Woodbine play. Until recently, the eastern portion of the state had seen little Eagle Ford success, despite the play dominating exploration and development activity in South Texas.

In late 2009, Rippy Oil brought its 3H Simms online. This horizontal Leon County (RRC Dist. 5) discovery was tested for just 50 bbls of oil per day through an acid- and fracture-treated Eagle Ford zone at 7260-8885 ft. Total depth is 9141 ft, or 6989 ft true vertical depth.

Rippy completed a couple of additional oil wells in Leon County, with EOG Resources adding to the field. EOG’s 1H Rea Unit – with an IP of 450 bbls of oil per day – was the first Madison County well brought onstream, extending the field into RRC Dist. 3.

Enter Halcón Resources The Houston-based operator, through its subsidiary Halcón Operating, leapt into the play in late 2012 and reported its first production in early 2013. The company’s 1 Hawk in northern Brazos County (RRC Dist. 3) was tested flowing 936 bbls of 37.2-degree oil, 396,000 cu ft of gas and 96 bbls of water per day from fracture-treated perforations at 8073-14,887 ft. Flowing tubing pressure was 1000 psi on a 14/64-inch choke.

Halcón’s 1 Hawk extended Aguila Vado field into Brazos County, which rapidly formed the heart of the expanding reservoir. Since joining the fray, Halcón has become the most prolific operator in the field, accounting for more than 50 percent of the drilling to date. Initial potentials at the company’s 1H Bumble Bee and 1H Hedge Hog, both in Brazos County, topped 1,000 bbls of oil per day, the highest flow rates reported so far. Halcón’s entry into to what had been such a poorly performing part of the Eagle Ford trend underscores the impact of an operator that has learned the best techniques to produce tight reservoirs. Many of the people in Halcón come from Petrohawk, the key company in the Eagle Ford’s original discovery and producing potential.

Although production figures for the relatively new field remain incomplete, 20 Eagle Ford wells averaged 5,950 bbls of oil and 2.7 million cu ft of gas each during July 2013.

Continued expansion and permitting Burleson County in RRC Dist. 3 is the latest Texas county to see exploration in Aguila Vado field. The county’s first test in the field was spud on October 27 by Garland, Texas-based PMO. From a site in the eastern portion of the county, the 1H Marion J. Malazzo is being horizontally drilled toward a true vertical depth of 9400 ft. The lateral is expected to bottom nearly two miles to the southeast. Until PMO spud its Eagle Ford Shale venture, horizontal drilling in this part of the county had been focused on Austin Chalk development in Giddings field.

Just four horizontal Aguila Vado field tests have been permitted in Burleson County, including PetroEdge Operating’s 2H Carr-Buffalo Ranch Unit-1 more than six miles to the southeast. The other two Aguila Vado field permits in the county were filed by Halcón.

On the easternmost flank of the field, EOG Resources has set production casing at a western Walker County test – the 1H True Grit. If successful, this 18,005-ft (12,768 ft TVD) horizontal well would be the first Aguila Vado field well in the county.

Activity continues to expand in Aguila Vado field. In October 2013 alone, 25 new permits were filed by Halcón, EOG, Apache, Impetro Operating, PetroEdge Operating, Northfield Enterprises and Laredo Energy.

Since the field’s discovery, wells have been permitted and/or drilled in Brazos, Burleson, Grimes, Leon, Madison, Robertson and Walker counties.

Posted 12 November 2103

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.