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Eagle Ford Shale - South Texas - Natural Gas & Oil Field

Eagle Ford Shale - South Texas - La Salle County, Maverick County TX

EOG Resources - Major Oil Discovery April 2010 ( news below )

" We believe the South Texas Eagle Ford horizontal crude oil play will prove to be one of the most significant United States oil discoveries in the past 40 years "

Mark G. Papa, Chairman and Chief Executive Officer - EOG Resources

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What is the Eagle Shale Formation?  The Eagleford Shale is a rock formation located in several counties in South Texas.  Oil can be found in McMullen County, Texas and Natural Gas has been found in the Eagle Ford Shale located in La Salle County, TX.  In Webb County Texas, St Mary Land & Exploration has announced they are drilling their first horizontal well soon.

The Eagle Ford Shale is located directly below the Austin Chalk Shale formation and is estimated in some spots to be as deep as 11,300 feet.  While the Eagle Ford Shale has mainly been tested in a few counties located in South Texas, the Eagle Ford Shale extends up toward Dallas County and has an average thickness of 475 feet.  The Eagle Ford formation was named after exposures around the small settlement of Eagle Ford, which is situated on the south side of the Trinity north of Arcadia Park.

As you will see below, several companies are currently active in the Eagleford shale.  Apache ( APA ) is the clear leader so far with around 450,000 acres.  EOG Resources has arrived and is calling the Eagle Ford Shale the biggest oil discovery in 40 years.  They obviously have acreage in the oil zone of the Eagle Ford Shale.  Think about the Bakken Shale and what it did for Continental Resources ( CLR ).  

Petrohawk Energy ( HK ) is drilling the Eagle Ford Shale in La Salle County, Texas.  They are actually drilling for natural gas and had a well hit over 9.1 million cubic feet per day.  Petrohawk has over 100,000 acres of mineral leases.  Petrohawk has been famous for their early discovery of parts of the Haynesville Shale located in East Texas and Louisiana


Recent Eagle Ford Shale News - Crimson Exploration (CXPO) - In our Fashing area, approximately 16 miles to the north of our Pawnee area, and where we own an approximate 50% working interest in 1,500 gross HBP acres, leasing and drilling activity has increased dramatically. EOG has been active, drilling and permitting horizontal wells approximately two miles north of our leasehold, which is currently believed to be in the oil corridor of the Eagle Ford Shale Play.

What is ahead for the Eagleford Shale in 2010?  As for all shale formations in the United States, the recent economic crisis and recession caused natural gas demand to fall drastically. This caused a huge drilling decline.   With so many shale plays discovered in 2008, natural gas supplies have really ramped up.  While these shale discoveries were are exciting, the oversupply of natural gas combined with the economic recession kept natural gas prices down for awhile.  Higher natural gas prices will bring more drilling but more drilling will bring in more supply.  The big players in the Eagleford Shale are here to stay but I don't think you will see companies scrambling for acreage like you saw with the Haynesville Shale in the spring & summer of 2008.

I am expecting Natural Gas to hit atleast $6 sometime in 2010.  If this is the case, expect drilling to pick up big time in South Texas.  Check out the excitement in the Niobrara Shale

Eagle Ford Shale Map *** Updated ***
eaglefordshalemap-2.JPG
South Texas - La Salle, Maverick County Texas

Eagle Ford Shale Oil Map
Eagle Ford Shale Oil Map
McMullen, Live Oak, Atascosa, Wilson County Map

Eagle Ford Shale Oil Map - EOG Resources has hit paydirt in the Eagle Ford Shale.  The company has struck oil in the Eagle Ford Shale Oil zone.  This zone seems to be located in McMullen County, Live Oak County, Atascosa County, Wilson County, and Karnes County and extends over toward La Salle County, Frio County, Zavala County, Maverick County, Dimmit County.

EOG Resources (EOG) announces major oil discovery in the Eagleford Shale - In South Texas, EOG has accumulated acreage across six counties in the Eagle Ford Play where it has drilled 16 delineation wells over a 120 mile trend. Based on initial drilling and production results, as well as technical and core analysis, the estimated reserve potential on EOG's 505,000 net acre position in the oil window is approximately 900 million barrels of crude oil equivalent (MMboe), net after royalty (NAR). Development of this high rate-of-return crude oil play is underway with the first significant production impact projected for 2011.  April 2010 Link
Update - In the South Texas Eagle Ford where EOG holds 505,000 net acres in the mature oil window, the Harper Unit #4H was completed to sales in Karnes County. The well, the 17th that EOG has drilled across a six-county area in the play, began production at a rate of 602 Bopd with 650 thousand cubic feet per day of natural gas. EOG has 100 percent working interest in the well. To date, EOG's initial production results in the play are consistent with the average well commencing production at an approximate 800 Bopd rate. EOG is operating a six-rig drilling program in the Eagle Ford and plans to significantly increase production in 2011.

The Eagleford Shale welcomes ConocoPhillips ( COP ) as of March 11, 2009.   The CEO, Jeff Mulva, said in a meeting today that they are scaling back operations in North America but have been quietly been accumulating mineral rights acreage in the Eagleford Formation ( Maverick and La Salle Counties ).  As the owner of this website, I pretty much know whats going on as far as the drillers.  I can tell you that some of the well data that has come out on the Eagleford over the past several months has been in the same ball park as the haynesville shale, which will end up being the biggest natural gas field in the USA.  There is also some nice oil recoveries going on as well, similiar to the bakken formation in North Dakota.  I was wondering when the big boys were going to show up!  Now we here news today about Conoco.

Companies Drilling in the Eagle Ford Shale - Eagleford Shale Stocks

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Apache Corp ( APA ) - Apache is now the leader in the Eagle Ford Shale.  Apache leads two of the hottest natural gas shale plays in North America.  The other would be the Horn River Basin which is located in British Columbia.

Leo Mariani – RBC Capital Markets - from seekingalpha

I was wondering if there was any update on the Eagle Ford Shale if you guys have done anything there recently, picked up any acreage or drilled any new wells.

G. Steven Farris

Well, we have a pretty good acreage position in there presently we have about 450,000 acres through the oil side and some in the gas side. In fact, we're re-looking that. We're not drilling a well at the present time. We're re-looking pressures and core analysis to try to figure out we drilled a horizontal well that was a very marginal well, frankly, on the gas side.


ConocoPhillips ( COP ) - Eagle Ford Shale Update - During the quarter, the company continued to ramp-up its drilling program in the Eagle Ford shale play. ConocoPhillips currently has three rigs drilling in the play and has completed the drilling of four horizontal wells. The first of these wells was placed on production in late March and flowed at an initial daily rate of 3.8 million cubic feet of gas and 1,200 barrels of condensate. This well and other industry drilling results reinforced the potential of ConocoPhillips’ 240,000 net acre position in the liquids-rich core of this play.

Exxon Mobile XOM -  April 2010 - In the Eagle Ford shale gas play, we are preparing for drilling operations

Murphy Oil MUR - In the Eagle Ford shale play in South Texas, the Drees A-79 1-H well in Karnes County was drilled to a measured depth of 17,340 feet and following a 15-stage fracture treatment along a lateral section of 4,985 feet, flowed at initial rates of 1,462 barrels of oil per day and 1.25 million cubic feet of gas per day.  The Company currently has two rigs drilling in the trend, where Murphy has accumulated over 200,000 net acres. Murphy has a 100% working interest in the Drees well.

Chesapeake Energy CHK - Eagle Ford Shale (South Texas): Chesapeake is building a leading position in the liquids-rich portion of the Eagle Ford Shale in South Texas. On its 400,000 net acres of Eagle Ford Shale leasehold, Chesapeake estimates it has approximately 370 mmboe (2 tcfe) of risked unproved resources and 1,850 mmboe (11 tcfe) of unrisked unproved resources. Chesapeake has drilled and completed three gross wells to date and anticipates operating an average of approximately four rigs in the Eagle Ford in 2010 to drill approximately 40 net wells.

Cabot Oil & Gas (COG) -  Cabot has entered a 50/50 joint venture agreement with EOG Resources, Inc. to develop approximately 18,000 acres in the mature oil window of the Eagle Ford shale in Atascosa County. Under the terms of the agreement, each party contributed the same amount of acreage and EOG will operate. Dinges added, "We are excited about the location of this acreage and for the opportunity to participate with one of the most experienced, active operators in the trend."

As it relates to this trend outside of this joint venture, Cabot's second operated Eagle Ford well has been drilled and cased with completion operations set to begin in late August-early September. A third operated Eagle Ford effort will spud by month-end. .

Pioneer Natural Resources  - PXD Pioneer Natural Resources Company (NYSE:PXD) today announced its fifth successful well in the Eagle Ford Shale in South Texas. The Chesnutt Gas Unit #1 well, which is located in Karnes County, Texas, tested at an initial production rate of 15.6 million cubic feet of gas equivalent per day (including 14.1 million cubic feet of gas per day and 255 barrels of condensate per day) on a 24/64 inch choke with approximately 5,600 pounds per square inch wellhead flowing pressure. The liquids-rich gas contains 1,200 British thermal units per cubic foot. The well was drilled to a vertical depth of approximately 13,300 feet and completed in a 4,100-foot lateral section with a 12-stage fracture stimulation. Production from the well is expected to flow to sales beginning in the third quarter after completion of a Pioneer-operated gas treating facility where the condensate will be separated from the gas.
"We are very excited to have successfully drilled another highly productive well in the Eagle Ford Shale. The Chesnutt #1 provides additional confidence in the development potential of the 1,750 Eagle Ford Shale locations we have identified across our large 310,000 acre position. This well also further validates the attractive liquids yields we expect to realize in the condensate window of the play, where approximately 70% of our acreage lies. With a gross resource potential of more than 11 trillion cubic feet equivalent, we expect the Eagle Ford Shale to add significant production and reserves while enhancing shareholder value."

Pioneer is a technology leader in this play with greater than 2,000 square miles of 3-D seismic data, logs from more than 150 operated wells, proprietary core samples and micro-seismic results. The Company is targeting liquids-rich areas with two rigs currently drilling horizontal wells in Karnes and Dewitt Counties and one well currently awaiting completion. To further accelerate Eagle Ford Shale development, the Company is actively pursuing a joint venture, with an announcement expected by the end of the second quarter of 2010. Plans call for drilling to be aggressively increased to six or seven rigs by the end of 2010, ten rigs by the end of 2011 and 14 rigs by the end of 2012.

-  Petrohawk Energy  HK  - Petrohawk Energy ( HK ) has come out and stated they are active in the Eagle Ford Shale.  Petrohawk has expanded its position in the Eagle Ford trend, where it is currently operating 8 rigs, to include three distinct areas of development: Hawkville, Black Hawk and Red Hawk. Each of these areas has different production profiles which all provide the opportunity for large scale development. The Company forecasts that with the current capital budget allocation in 2010, and a modest increase in drilling capital allocated to the Eagle Ford Shale in 2011, oil and natural gas liquids production is expected to increase significantly to approximately 15%-20% of total production by the end of 2011. Currently, oil and natural gas liquids production is approximately 3% of Petrohawk's total production.

The Hawkville Field, in La Salle and McMullen Counties, Texas, is expected to continue its role as the core commercial production area for natural gas and liquids. With approximately 25 wells on production, the bounds of Hawkville Field production are expanding to the east and north. The initial well in the Joint Venture with Swift Energy was successfully completed during the first quarter. The Bracken JV #1H initially tested at a rate of 9.0 Mmcfe/d on a 24/64" choke. The well's production rate was subsequently restricted temporarily, awaiting the installation of further production facilities, to a choke setting of 17/64" at a rate of 6.4 Mmcfe/d with a stable flowing casing pressure ("FCP") of 5500#. The second well in the Joint Venture is waiting on completion and the third well is drilling.

The third well in the Black Hawk prospect in Dewitt County, Texas, the Kickendahl #1H, was recently completed at a rate of 3.1 Mmcf/d and 745 Bc/d on a 12/64" choke with 7,550# flowing casing pressure. This result is very similar to the first two wells that have been completed, even though the well was still cleaning up and the rate was increasing at the time of the report. The fourth well to be completed will be the Krause #2H. Its lateral length is approximately 5900', and it is the first well in the prospect with an extended lateral length. Its completion is scheduled for mid-May.

In the Red Hawk prospect in Zavala County, Texas, the Company is drilling ahead on its second well, the Mustang Ranch "C" #1H. It is anticipated that the well will be completed within the next 30 days.

To date, Hawk Field Services has completed construction of approximately 65 miles of primarily 16" pipe in the Eagle Ford Shale. An additional 100 miles of gas gathering line, 15 miles of condensate gathering line and 60 miles of liquids gathering lines are budgeted for construction during the remainder of 2010. The Company also expects to increase treating capacity in the Hawkville Field area by installing another 150 gallons per minute (GPM) amine plant, increasing Petrohawk's total treating capacity to 250 GPM in the Eagle Ford Shale. An additional 12,500 barrels of condensate stabilization capacity are scheduled to be added to plant sites in both the Black Hawk and Hawkville areas during 2010.

- Anadarko Petroleum  APC -  Anadarko acquired more than 80,000 net acres from TXCO in the Maverick Basin for approximately $93 million. The company has increased its position in the Maverick Basin to approximately 280,000 net acres.  Drilling activity continued with four operated rigs and expects to be operating six rigs by the end of the 2nd quarter. During the 1st quarter, the company spud ten operated horizontal wells in the Eagleford Shale and two evaluation wells in the Pearsall Shale. Seven Eagleford wells were completed with test rates ranging up to 3.7 MMcf/d and approximately 640 Bbl/d.

Forest Oil Corporation FSTGonzales, Lee, Wilson, Atascosa & DeWitt Counties, Texas - Eagle Ford Shale

Forest has been actively acquiring acreage in the Eagle Ford Shale since 2009. As of March 31, 2010, the Company's leasehold in South Texas prospective for the Eagle Ford Shale is approximately 106,000 gross (102,000 net) acres, of which approximately 81,000 of the gross and net acreage is in the Gonzales and Wilson County oil window.

Forest intends to shoot seismic over portions of the acreage during the second and third quarters of 2010 and expects to commence a drilling program thereafter.

-  St Mary Land & Exploration  SMEAGLE FORD SHALE - Since the Company's last update provided on its yearend earnings call on February 23, 2010, St. Mary has drilled an additional 10 wells in its operated Eagle Ford shale program resulting in a total of 19 operated wells drilled to date. Seven (7) of these have been completed, with three (3) of those being completions on the southern Galvan Ranch acreage. Three (3) wells are waiting on completion. The production rates of all but one of these recent completions have been intentionally constrained to a limit of 2.5 MMcf/d as part of a pilot to determine how to optimize the program's economic returns and EURs. Condensate yields from recent wells are consistent with previous results, with condensate yields in the range of 40-60 barrels per MMcf of gas production being seen in the northern parts of the Company's operated acreage. Additionally, natural gas liquids appear to be more prevalent on our operated acreage than initially believed. Notably, a well completed in the Galvan Ranch acreage had gas production with Btu content greater than 1,150 BTU per standard cubic foot. St. Mary had previously assumed that the majority of the Galvan Ranch acreage would be lower BTU gas. The Company continues to see improvements in its drilling efficiency in the play, as evidenced by the fact that the most recent well in the northern portion of the acreage was drilled in less than 10 days, from spud to rig release. From a cost perspective, these drilling efficiencies are being offset by increases in the cost to complete the wells. St. Mary currently estimates wells on its operated acreage can be drilled and completed for between $5.5 and $6.0 million per well. Two operated rigs are budgeted to run throughout the remainder of 2010 on the Company's operated acreage position.

In the Anadarko Petroleum Corporation operated portion of St. Mary's acreage position, the Company has participated in 15 wells that have been drilled and completed in the program to date. An additional eight (8) wells in which the Company has a working interest are waiting on completion. St. Mary is also participating with this operator in the build out of infrastructure in this portion of the play. Currently, there are four (4) rigs operating in the partner operated portion of the play.

- Rosetta Resources ROSE -  Eagle Ford Shale Program  - Rosetta currently holds over 61,000 net acres in the Eagle Ford Shale play, approximately 29,500 of which is located in the liquids-prone Gates Ranch area where the Company holds a 100% operated working interest. Additionally, the Company holds approximately 32,000 net acres located in other prospective areas of the Eagle Ford, including 18,000 net acres in undrilled areas also considered prospective for liquids.

Since inception in the Eagle Ford play, Rosetta has drilled 11 horizontal wells and completed six wells. Five of the completions are located in the Gates Ranch area. The Company is currently running two drilling rigs in the play and averaging two completions per month on horizontal wells with average lateral lengths of approximately 4,700 feet and fracture stimulations averaging 13-15 frac stages per well. There are currently five wells waiting on completion. The Company is actively seeking additional stimulation equipment to work off this backlog.

The gross per well seven-day rate on the 2010 Gates Ranch wells averaged 330 Bbls of condensate, 460 Bbls of NGLs, and 2.9 MMcf/d of residue gas, for a total of over 7.6 MMcfe/d per well. Importantly, about 80% of the value from these wells is comprised from liquids. The Company is currently producing approximately 30 MMcfe/d on a gross basis, or 22 MMcfe/d on a net basis, from all combined Eagle Ford wells. This is up from zero a year ago. The Gates Ranch wells account for 95% of this production.

Rosetta expects to drill 25-30 Eagle Ford wells in 2010, with 20-25 wells planned in the liquids-prone Gates Ranch area. The Company believes it has de-risked this highly economic asset, and on an 80-acre spacing basis, has identified over 350 development locations on the Gates Ranch. The 2010 drilling program represents less than 10% of this significant future opportunity.

Regarding Rosetta's recent Eagle Ford activities, Limbacher commented, "Our Eagle Ford results are making a dramatic impact on the Company's performance. In less than one year, Rosetta has taken the Gates Ranch area from concept to full-scale development mode, and we still have other prospective areas of the play to explore. We are already achieving strong operating results and the shift to a higher liquids mix is adding significant margin to our profitability. Our acreage is largely concentrated in the areas of the play with the most attractive economics and we have built our positions in such a way as to establish meaningful footprints and operational control. We think there is tremendous potential to create value for our shareholders from this play."

Swift Energy SFY - Swift Energy is involved in the Eagleford Shale -  “The first quarter of 2010 saw Swift Energy’s first strategic production tests from the Eagle Ford Shale. The Fasken EF 1H in Webb County tested at a rate of 9.4 million cubic feet of gas per day (“MMcfg/d”), the PCQ 1H in McMullen County tested at a rate of 1,134 barrels of oil per day (“Bbls/d”) and 1.1 MMcfg/d and the Bracken JV 1H well, drilled by our joint venture partner in McMullen County, tested at a rate of 9.0 MMcfg/d. The tests from these initial appraisal wells further demonstrate that our Eagle Ford acreage position has excellent oil and gas development potential. Swift Energy’s large acreage position in this play should provide us with significant, multi-year development opportunities, which can deliver meaningful production and reserves growth in the years to come.
While our activity levels have picked up recently in South Texas, much of the first quarter was spent optimizing the project management processes we believe are necessary to maximize the value of our assets, particularly in the Eagle Ford and Olmos formations. These processes include batch drilling techniques, large scale water handling systems and stronger alliances with our service providers and vendors, all of which should improve our drilling and completion efforts.

EV Energy Partners EVEP - I want to update you on the Austin Chalk, specifically Apache in its quarterly announcement talked about their effort in the Eagle Ford Shale. Of the 450,000 net acres that I talked about, the 400,000 of those are acres that we form down to them. As you may recall, they had an obligation to spend $30 million over a four-year period.

In the first year and this is just what I anticipated, they’ve spent $30 million, there is currently three rigs drilling horizontally. We are letting Apache, take a lead on making announcements on the Eagle Ford, which we think is appropriate. They did announce one well on their acreage is producing shift of 500 barrels a day

Murphy Oil  MUR -  Murphy Oil will be drilling their first well in September 2009 -  We will also commence drilling this month on our Eagle Ford shale position located in south Texas where we are still actively leasing. It’s difficult to predict gas prices, but I feel confident that with cost supplies into any market situation, we will be favorably placed to grow production.

Plains Exploration & Production - PXP - PXP hinted in early May 2009 that they will be discussing their South Texas ( EagleFord Shale ) assets in the coming quarters.

Well, our portfolio is really getting streamlined from the standpoint of big California base and development projects we have out there, Haynesville and everything going on there, and both of those things have like a 15-year development inventory. We have a nice portfolio of great opportunities in the deepwater.

We are seeing some unique opportunities there in the inboard Paleogene that you are going to hear a lot more about here this fall from the majors. That we are going to take a look at participating in with some of our liquidity. The other thing, we have got South Texas and we got the Panhandle. Both those areas are higher cost than the area, the other areas I talked about and those kind of our optional area.

MDU Resources ( MDU ) - MDU has properties in South Texas and the Eagle Ford Shale but hasn't said much about them

Schlumberger (SLB) -   In US Land, advanced Schlumberger Drilling & Measurements technologies including the EcoScope* multifunction system, the SonicVISION* sonic-while-drilling service and the PowerDrive* rotary-steerable system have been deployed in 11 wells in various shale plays including the Woodford, Eagleford, Haynesville and Marcellus formations. As well as being used to place wells in the ideal part of the reservoirs and maximize completion and stimulation efficiencies, the technologies saved three days' worth of rig time per well in data acquisition and drilled the lateral sections two days faster than conventional motor technology.

Crimson Exploration CXPO - South Texas Shale - Eagle Ford Shale - Crimson and its partners are nearing completion of strategic plans for the pursuit of the Eagle Ford Shale in our Bee County acreage. We own a 40% working interest in approximately 2,800 acres in the area. Plans likely will include the commencement of a horizontal well during the fourth quarter of 2010. The probable location of this well, in what we have designated as our Pawnee prospect area, is between successful Eagle Ford wells drilled recently by Conoco Phillips to the north and northeast and Pioneer to the southwest.

In our Fashing area, approximately 16 miles to the north of our Pawnee area, and where we own an approximate 50% working interest in 1,500 gross HBP acres, leasing and drilling activity has increased dramatically. EOG has been active, drilling and permitting horizontal wells approximately two miles north of our leasehold, which is currently believed to be in the oil corridor of the Eagle Ford Shale Play.

We also own a 95% working interest in approximately 4,600 gross acres in southeast Zavala County where activity targeting the Eagle Ford Shale in the oil corridor of the play has increased. Petrohawk has announced the initial results on their Redhawk Prospect located approximately 17 miles WNW and Chesapeake has drilled to total depth on their initial horizontal well in Zavala County approximately 6 miles N of our leasehold. We are currently reviewing the area for potential late 2010 or early 2011 company operated drilling activity.

Newfield Exploration NFX - Eagle Ford Shale - In early 2010, Newfield purchased a package of assets from TXCO Resources Inc. and now owns interests in more than 300,000 net acres in the Maverick Basin of southwest Texas with multiple geologic targets, including the Eagle Ford and Pearsall Shale plays. Newfield expects to drill about 20 wells in the Maverick Basin with a multi-rig exploratory program commencing in mid-2010.

GeoResources GEOI - AUSTIN CHALK - Eagle Ford Shale

The Company has continued its successful exploitation of the Austin Chalk Formation in Giddings Field, in Grimes & Montgomery Counties, Texas.  The Hutto Unit #1-H (52% WI) was successfully brought on production for a 30 day average rate of 464 BOPD, 2.2 MMCPFD and 100 barrels of natural gas liquids per million cubic feet of natural gas. Subsequently, we spud the McCleney Lavender #1-H (52% WI) well. However, while drilling the vertical section of the McCleney well, we encountered a zone at approximately 4,175’ which caused lost circulation problems.  After failed attempts to squeeze off this zone and establish mud weights sufficient to drill the Austin Chalk, we chose to suspend drilling on this unit.   The rig was moved to the Chappel Woods #1-H (47% WI) and we are currently drilling the second lateral.  This well is expected to be completed in about three weeks. The rig will then return to the McCleney area and drill the Wilkerson Davis #1-H (52% WI) as a replacement to the McCleney well, using a different casing program.  The Hutto and the Wilkerson Davis are located on the northwest side of our Grimes County acreage block where the reserves tend to be more “oily” and result in about 50% oil and liquids.  To date, the Company has drilled 14 Austin Chalk wells and achieved a 100% success rate. Our present inventory includes 22 proved undeveloped and probable locations within the Giddings Field. Our working interest varies from 37% to 53%. At present, we expect to sequentially drill all locations with a single drilling rig. However, we are in no jeopardy of losing leasehold positions and, therefore may defer drilling with poor natural gas prices or alternatively accelerate drilling with higher commodity prices. Our acreage position exceeds 68,000 gross acres, a majority of which is held by production and is prospective for the shallow Yegua and for the Eagle Ford Shale, Buda and Georgetown Formations.

Goodrich Petroleum  GDP - South Texas Eagle Ford Shale Oil Play - As previously announced, we have entered into agreements to acquire 50,000 gross (35,000 net) acres in the oil window of the Eagle Ford Shale play in LaSalle and Frio Counties, Texas. The Company plans to move one rig down to the Eagle Ford Shale in June of this year to commence drilling operations, with 8 - 10 gross wells expected to be drilled in 2010.

Talisman Energy TLM -  "We have made an entry into the Eagle Ford shale play in south Texas, with agreements to purchase 37,000 net acres in the liquids transition window of the play. These are top tier properties, which are de-risked, with 2,000 boe/d of current production, and ready for commercial development.

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