Eagle Ford shale McMullen joint venture forms

Dec. 7, 2009
Activity further intensifies in the South Texas play for gas with condensate to varying degrees in Cretaceous Eagle Ford shale, according to developments reported in November.

Activity further intensifies in the South Texas play for gas with condensate to varying degrees in Cretaceous Eagle Ford shale, according to developments reported in November.

Petrohawk Energy Corp. and Swift Energy Co. will jointly explore and develop 26,000 acres of Swift Energy's acreage in McMullen County, Tex., prospective in the Cretaceous Eagle Ford shale.

St. Mary Land & Exploration Co., Denver, drilled and completed three more horizontal wells on its 100% working interest acreage and progressed its joint venture with Anadarko Petroleum Corp.

And El Paso Corp. said it almost doubled its lease position to 112,000 net acres in the play, where it plans to maintain a one-rig program.

El Paso's first completion, a 4,000-ft lateral with a 16-stage frac in La Salle County, is still cleaning up with volumes increasing to the current flow rate of 6.1 MMcfe/d at 5,200 psi flowing tubing pressure.

Petrohawk-Swift Energy

Petrohawk will initially serve as operator of the 50-50 venture that covers leasehold interests in Swift Energy's AWP field 70 miles south of San Antonio beneath the gas-prone Olmos formation at 9,000-11,500 ft to the base of the Pearsall formation.

Petrohawk said it believes Swift Energy's acreage is in a geologically ideal depositional location and contiguous to Petrohawk's rapidly developing program in Hawkville field.

Swift Energy has sizable acreage outside the joint venture and plans to drill a horizontal test well before yearend.

St. Mary status

St. Mary's Galvan Ranch-1H, with a 5,005-ft effective lateral and 17-stage completion, averaged 8 MMcfe/d after 7 days of sales. It is the farthest south well to date and has 1,000 btu/scf gas with essentially no condensate.

Briscoe Apache Ranch-1H, with a 4,000-ft lateral and 14-stage completion, averaged 7.1 MMcfe/d and has a richer gas stream at 1,200 btu/scf.

Galvan Ranch 4H, with a 5,000-ft lateral and 15-stage completion, flowed at 7 MMcfe/d with little condensate at 3,600 psi flowing wellhead pressure constrained by temporary pipeline limitations. In joint venture acreage north of the company's 100% working interest position, St. Mary took over from TXCO Resources Co. as the drilling operator earlier this year and drilled and completed the remaining three earn-in wells in Phase II. Consistent with St. Mary's prior statements, it is clear from the initial flowback results from these wells that this part of the play will have high condensate yields. Anadarko is installing more sales infrastructure to facilitate further testing.

St. Mary has leased or optioned 225,000 net acres in the Eagle Ford shale, with roughly 159,000 net acres of operated, high working interest acreage and 66,000 net acres in the joint venture.

Kinder Morgan Energy Partners LP and Copano Energy LLC also plan to develop gathering, transportation, and processing services in the play (OGJ Online, Nov. 20, 2009).

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