Drilling permits: Sanchez Energy to drill new Eagle Ford wells as stock falls below $1
Editor’s Note: Drilling permits is a new weekly feature of Fuel Fix and Texas Inc. that will put the spotlight on noteworthy oil & gas drilling projects across the Lone Star State.
The Houston oil and gas company Sanchez Energy is preparing to drill 13 new wells in a natural gas-rich region of the Eagle Ford Shale just as its stock started trading below $1 per share and natural gas prices hit near-three-year highs.
The Railroad Commission of Texas issued Sanchez 13 drilling permits for a series of horizontal wells on its Piloncillo lease off U.S. Highway 83 about 37 miles northwest of Laredo.
All 13 wells target the Briscoe Ranch field of the Eagle Ford geological layer down at total depths up to 9,700 feet. Total depth refers to the combined length of both the vertical and horizontal segments of well.
Natural gas is trading at near three-year highs above $4 per MMBTU. The drilling projects come at a critical time for Sanchez. The company reported a $17.3 million loss on $277.7 million in of revenue during the third quarter. Sanchez’s stock fell below $1 per share late last week
A recently sold saltwater disposal company is building a new facility with three injection wells in one of the busiest areas of the Permian Basin. Western Gas Partners of The Woodlands entered into a $4 billion deal on Nov. 8 to buy Andarko’s midstream holdings, which included saltwater disposal subsidiary APC Water Holdings. The deal is expected to close during the first quarter of 209, but less than three weeks after the announcement, APC is moving forward with plans to build a saltwater disposal facility with three injection wells in Reeves County.
Eagle Ford Shale
A company formed earlier this year by former Occidental Petroleum Corp. CEO Steve Chazen has stepped up its drilling program in oil-rich Karnes County. The Railroad Commission of Texas issued five drilling permits to Houston-based Magnolia Oil & Gas. The company is drilling five new horizontal wells, three in the Austin Chalk and two in the Eagle Ford.
New drilling activity remains low in the Barnett Shale, but Irving-based Silver Creek Oil & Gas is preparing for a horizontal drilling project in just north of the Dallas-Fort Worth metroplex. The company has received a drilling permit for a new oil & gas well in Cooke County.
XTO Energy is gearing up for its latest horizontal drilling project in East Texas. The Exxon Mobil subsidiary filed for a drilling permit for a new natural gas well on its Warriors DU lease in San Augustine County. Located about eight miles northwest of San Augustine, the horizontal well targets the Carthage field of the Haynesville Shale with a depth of 19,300 feet. XTO is one the most prolific drillers in the East Texas shale play, just behind Rockcliff Energy and Sabine Oil & Gas, both of Houston.