Enverus South Texas Scout, January 2, 2020
The EIA projects that Eagle Ford production will fall by 9,000 bo/d and 69 MMcf/d sequentially in January to 1.357 MMbo/d and 6.775 Bcf/d.
■ There were 1,397 DUCs in the Eagle Ford as of November, down by 24 from October.
■ In Fayette County, Texas, Ramtex Energy completed an Austin Chalk producer in Giddings field. The well was completed with a 5,459- ft effective lateral that was fracked using 13.3 MMlb of sand. During a 24-hour test, the well produced 17.5 MMcfe/d (88% gas) on a 7/64-inch choke at 3,979 psi FTP. Ramtex’s 2019 completions have focused on the Austin Chalk at Giddings. The company is currently drilling another such well, the Cliffhanger B, with its one active rig.
■ Much like in 2019, Baytex Energy’s plan for 2020 is designed to deliver stable production, maximize free cash flow and strengthen its balance sheet. Capex has been set at $500-575 million, which is relatively flat compared to an expected 2019 spend of $560 million. Production guidance of 93,000-97,000 boe/d would also be flat YOY at the high end. The company expects to generate free cash flow of $300 million in 2019 and anticipates $100 million in 2020. In the Eagle Ford, 30% of the budget will be spent to participate in 22 net wells operated by Marathon Oil.
■ Due to drilling and completion efficiencies, Penn Virginia was able to turn to sales 4.8 more net wells than planned during Q3. In total, 20 gross wells were turned to sales, which helped to boost production 4% sequentially and 27% YOY to 29,003 boe/d (73% oil). Given the acceleration of completion activity as well as the acquisition of additional working interests on a portion of its assets, the company adjusted 2019 capex guidance to $350-360 million from $335-355 million.
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