Eagle Ford Shale - Eagle Ford Shale Map

The Eagleford Shale in 2011/2012 - The Eagle Ford Shale was the hottest oil play in the United States in 2011 but is still only getting started. The best oil field currently is the Bakken Shale located in North Dakota. However, while the acreage land grab for mineral rights is starting to wind down, the Eagle Ford Shale is set to produce a ton of oil in 2012. The major players in the Eagleford Shale are here to stay but the natural gas window seems to be getting very quiet. If Natural Gas prices ever rebound, the Eagle Ford Shale will make a on two punch with high oil and natural gas rates. Expect 2012 to bring huge joint ventures to the Eagle Ford Shale's oil window. Oil prices should spike north of $95 at some point in 2012.

EOG Resources EOG - Across its dominant acreage position in the South Texas Eagle Ford crude oil window, EOG's 2011 improved completion techniques and cost optimization practices continue to drive operational gains and enhanced well production results. Reflecting this combination, EOG has posted its best wells to date in the South Texas Eagle Ford. In Gonzales County, the northeastern-most part of EOG's acreage, the Mitchell Unit #1H and #2H began initial production at peak rates of 2,821 and 3,090 barrels of crude oil per day (Bopd) with 2.8 and 2.9 million cubic feet per day (MMcfd) of rich natural gas, respectively. The Meyer Unit #1H, #2H and #6H started sales at peak crude oil rates of 2,372, 1,600 and 2,918 Bopd, respectively, and produced 1.8, 2.2 and 2.7 MMcfd of associated rich natural gas, respectively. The Kerner Carson Unit #1H, #2H, #4H, #6H, #8H and #10H wells were turned to sales at crude oil production rates ranging from 1,580 to 2,239 Bopd with 1.2 to 1.9 MMcfd of rich natural gas. EOG has 100 percent working interest in these Gonzales County wells.

South of Gonzales in Karnes County, the center of EOG's acreage, the AFO Unit #1H, #2H and #3H began initial maximum production at 2,289, 1,700 and 1,548 Bopd, respectively, with rich natural gas production ranging from 1.2 to 1.6 MMcfd. EOG has 100 percent working interest in these wells. EOG has 50 percent working interest in the Deleon-Reinhard Unit #1H and Deleon-Wiatrek Unit #1H wells, which were completed at peak crude oil rates of 2,235 Bopd with 1.2 MMcfd and 2,161 Bopd with 1.7 MMcfd of rich natural gas, respectively.

In LaSalle County, EOG's southwestern-most acreage, the Naylor Jones A #6H and A #7H began initial production at 1,582 and 1,342 Bopd with 1.5 and 1.6 MMcfd of rich natural gas, respectively. EOG has 100 percent working interest in these wells.

"As we apply what we've learned about the Eagle Ford across our extensive operations, EOG's production results just get better and better," Papa said. "We are also seeing early positive results from each of our seven downspacing pilot programs. Drilling wells more tightly spaced than our original 130-acre patterns provides even more development opportunities for EOG."

Petrohawk Energy Employs Breakthrough Schlumberger Frac Technology Successfully in the Eagle Ford Shale - The EagleFord Shale Formation is seeing a best technology in the USA right now

Petrohawk implemented Schlumberger's MP7 (HiWAY) flow-channel fracturing technique since October 2010 on a select number of wells as a trial to determine the impact of this novel methodology on horizontal multistage production in the Eagle Ford Shale. The initial tests were located in various areas of Hawkville Field. The HiWAY fracturing technique combines fit-for-purpose fracture modeling, fracturing fluids and high-frequency proppant pulsations. The HiWAY method effectively creates flow channels within the fracture network and increases the overall stimulated reservoir volume and permeability.

Initial production results from this limited set of wells reflect average production increases of approximately 37% in the areas with gas and natural gas liquids and an average of approximately 32% in the high condensate yield areas. Additionally, EUR increases from the limited trial, based on internal estimates, ranged from 25% to 90% higher as compared to offsetting wells completed with conventional fracturing techniques. Petrohawk has converted 100% of frac services provided by Schlumberger in the Eagle Ford to HiWAY. Currently, Petrohawk is utilizing all available capacity of this technology.

- 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.

November 2011 Update - Anadarko Petroleum Eagle Ford Shale - Anadarko exited the quarter with gross production of 66,000 BOE/d, which represents growth of 47% over the 2nd quarter exit rate of 45,000 BOE/d. For the quarter, oil sales volumes increased almost 150% compared to the same period in 2010. During the quarter, the company spud 56 wells using 10 rigs and one spudder rig, and achieved first production from 37 wells. Anadarko initiated delivery to the Copano pipeline during the quarter and now has three main gathering and processing systems available for natural gas delivery.

Chesapeake Energy CHK - Eagle Ford Shale (South Texas): Chesapeake has built a leading position in the liquids-rich portion of the Eagle Ford Shale in South Texas with approximately 460,000 net acres of Eagle Ford Shale leasehold, an increase of approximately 150,000 net acres from the 2010 first quarter. Chesapeake has drilled and completed seven gross wells to date and anticipates operating an average of approximately five rigs in the Eagle Ford in 2010. In 2011 and 2012, the company expects to increase its drilling activity to an average of 16 and 27 rigs, respectively. Chesapeake expects to conclude ongoing Eagle Ford Shale joint venture discussions and announce a joint venture transaction by the end of the 2010 third quarter.

Three notable recent wells completed by Chesapeake in the Eagle Ford Shale are as follows:

The PGE Browne 1-H in Webb County, TX achieved a peak 24-hour rate of 4.0 mmcf and 1,200 bbls per day, or 11.2 mmcfe per day;
The Lazy A Cotulla 1H in Dimmit County, TX achieved a peak 24-hour rate of 0.3 mmcf and 930 bbls per day, or 5.9 mmcfe per day; and
The Traylor North 1H in Zavala County, TX achieved a peak 24-hour rate of 0.3 mmcf and 930 bbls per day, or 5.9 mmcfe per day.

November 2011 Update - Eagle Ford Shale. Chesapeake Energy (CHK) now has about 460,000 acres.

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 ) - ConocoPhillips COP Eagle Ford Shale Update - ConocoPhillips continued its focus on the liquids rich Eagle Ford, Bakken and North Barnett shale plays, First, at Eagle Ford, we are currently running 16 rigs in the play. We expect to maintain a 16 rig count average and drill about 180 wells in 2012. Production in late December was around 50,000 BOE per day, and we continue to see some impacts from curtailments related to infrastructure constraints as a result of the higher well volumes and the increasing liquid content and just our ongoing development activity. We would anticipate that average production from the Eagle Ford should grow to around 100,000 BOE per day by the end of 2012.

Occidental Petroleum OXY - Occidental Petroleum has entered the Eagle Ford Shale in South Texas - The South Texas acquisition from Shell were about $1.8 billion gives us properties, which have over 320 billion cubic feet of gas equivalent, improved and developed reservoirs and are liquids-rich with a solid inventory of building opportunities. Oxy has already made producing in Texas, and East South Texas assets further expand our footprint in the state.

Murphy Oil MUR - Murphy Oil (MUR) Eagle Ford Shale in South Texas - Activity in the Eagle Ford Shale continues to ramp up In the Eagle Ford Shale, we exited the year near 9,000 barrels of oil per day net as we ramped up our rig count from 3 to 6 over the year. We now have 7 rigs running, and we'll add 2 more by early March and average 8 for the year. To date, we have drilled 56 wells, with 9 awaiting fracs. Well results continue to be very encouraging and are trending better than our type curve for wells in the play. Costs are being worked down with improved service contract terms as well as improved efficiencies in drilling and completion operations. I expect to see further improvements in cost as gas rigs and equipment stand down across industry this year.

Cabot Oil & Gas (COG) - Cabot Oil & Gas (COG) is very active in the Eagle Ford Shale - Cabot increased activity in the Buckhorn area of the Eagle Ford Shale during the third quarter with nine more wells completed plus two wells in the completion phase and one well waiting on completion. This brings the total producing wells to 21. The initial production rate for these wells is 628 Barrels of oil equivalent per day (Boepd) with a 30-day average of 500 Boepd. Two recent completions achieved 24-hour initial production rates of 938 and 791 Boepd.

The average lateral length for all wells at Buckhorn is approximately 5,000' with an average of 16 frac stages. Also, three additional non-operated wells were drilled and completed with very good results in the area where Cabot owns a 50 percent working interest. "With this successful activity our liquids volumes continue to grow as evidenced by the recorded levels for the quarter," commented Dinges.

Pioneer Natural Resources PXD - Pioneer Natural Resources PXD Eagle Ford Shale - In the liquids-rich Eagle Ford Shale in South Texas, Pioneer and its joint venture partners are currently running 12 rigs. To improve the execution of its drilling and completions program and reduce costs, Pioneer purchased two fracture stimulation fleets for its Eagle Ford Shale completions. One fleet was placed in service in April and the other fleet is expected to be operational later in the fourth quarter. The Company also entered into a two-year contract for a dedicated third-party fracture stimulation fleet, which commenced operating in April. With the start-up of these two fleets, Pioneer has been able to significantly increase the number of wells put on production, with a further increase expected when the second Company-owned fleet commences operations later this quarter.

The Company continues to see strong performance from its Eagle Ford Shale drilling program. Wells drilled during the third quarter continued to yield approximately 65% liquids, consisting of oil, condensate and NGLs. The lateral length of each well continues to average approximately 5,500 feet and is being completed with a 13-stage fracture stimulation.

Eagle Ford Shale Well Cost is between $7-8 million

- Petrohawk Energy HK - Petrohawk Energy ( HK ) is active in the Eagle Ford Shale. The Black Hawk area (DeWitt County, Texas) continues to produce excellent results. A majority of Petrohawk-operated wells were produced on a constrained basis due to transportation infrastructure limitations. During the quarter, Petrohawk averaged nine operated rigs in the Black Hawk area, with 25 operated and one non-operated wells drilled. Net production from Black Hawk averaged 73 Mmcfe/d, comprised of 22% natural gas, 62% condensate and 16% natural gas liquids. Transportation infrastructure issues for the Company are moderating in the area with the addition of a dedicated truck fleet. Modifications to facilities at the Company's Point Comfort barge facility are nearly complete and the facility is expected to begin operating during the third quarter.

In Hawkville Field (LaSalle and McMullen Counties, Texas), Petrohawk averaged five operated rigs and drilled 15 operated wells and two non-operated wells during the quarter. Net production in the field averaged 129 Mmcfe/d, comprised of 67% natural gas, 14% condensate and 20% natural gas liquids. Well performance in Hawkville Field has continued to improve as a result of the expanded implementation of HiWAY frac technology, deployed by two dedicated Schlumberger hydraulic fracturing fleets. Petrohawk and Schlumberger are experimenting with variations in the HiWAY design, including higher sand volumes and fiber concentrations, in an attempt to optimize well performance for each area of the Eagle Ford trend. In addition, the Company is testing new frac designs in both the Hawkville Field and Black Hawk area with its Halliburton dedicated hydraulic fracturing fleet.

Results in the Red Hawk prospect in Zavala County, Texas, failed to meet minimum expectations during the quarter. As a result, capital spending at Red Hawk will be terminated and capital budgeted for 2011 will be reallocated to other operating areas.

Exxon Mobile XOM - Exxon Mobile is in the Eagle Ford Shale - Turning now to activities in our unconventional resource portfolio, a significant level of drilling activity continues in the US. During the quarter, we supplied the first well on our Birchus Ranch [ph] acreage in the Eagle Ford Shale of South Texas. ExxonMobil holds 50,000 acres in its emerging shale gas play.

Forest Oil Corporation FST - Forest Oil (FST) Gonzales, Wilson, Lee, DeWitt Counties, Texas - Eagle Ford Shale Play

Forest holds approximately 128,000 gross acres (118,000 net) in the Eagle Ford Shale play. The area provides Forest access to the oil-bearing section of the Eagle Ford and has the potential to become a significant oil development opportunity through the application of horizontal drilling and completion technologies.

Since the beginning of the third quarter, Forest completed five horizontal Eagle Ford Shale oil wells that had average 24-hour production rates of 481 Boe/d. Forest's most recent completion tested the uppermost member of the Eagle Ford Shale and encountered positive results with a 24-hour production rate of 951 Boe/d, and has averaged 552 Boe/d over the first 21 days of production. This most recent well had the lateral placed in the uppermost member of the section and utilized new completion techniques that included pumping smaller and less expensive fracture stages. Further, this well was monitored using micro-seismic to further evaluate the effectiveness of the fracture stimulation. Forest has four wells drilled in the uppermost member of the Eagle Ford that are currently waiting on completion.

Forest is currently utilizing two rigs to drill vertical micro-seismic monitoring wells as it continues to delineate its acreage position in Gonzales County, Texas. These micro-seismic wells are intended to optimize completions to increase initial production rates and estimated ultimate recoveries while decreasing completion costs. In most cases, these vertical wells can further be used as water supply wells for future completions.

- SM Energy SM - SM Energy (SM) Eagle Ford Shale Update - Eagle Ford Shale - Operated production in the Eagle Ford shale averaged 128 MMCFE/D, a 32% increase over the previous quarter. This increase was made possible by the addition of downstream wet gas transportation capacity made available during September by the start-up of the third party owned and operated Eagle Ford Gathering LLC pipeline. Production volumes on both operated and non-operated assets were at levels lower than the Company's internal forecast due to intermittent downstream constraints and construction related downtime on midstream facilities in the field, as well as a higher percentage of wells being shut-in for offset completion work during the quarter. Although a number of these issues have continued into October, the Company believes that production rates will grow materially by year end.

During the third quarter, SM Energy operated an average of 3.5 drilling rigs on its operated Eagle Ford acreage with 4 rigs running at the end of the quarter. The Company reduced average rig count during the early part of the third quarter compared to its original plan to avoid drilling and completing wells that could not be produced due to the infrastructure constraints noted above. A fifth rig is anticipated to be in the field by year end and the Company expects to run 5 rigs in the field throughout 2012.

During the quarter, the Company continued experimentation with down spacing pilots, longer lateral wells, and revised completion methods. By year end, the Company will have 8 pilot areas drilled at well spacing tighter than 1,250 feet. As previously indicated, data from the earliest of these pilots should be useful by year end 2011 to determine optimum spacing plans for future drilling. In general, the Company expects that optimum development spacing in the shallower and oilier areas of the field will be tighter than in the higher productivity areas. With the addition of rigs designed for pad drilling, SM Energy has begun drilling three well pads in its operated Eagle Ford shale program. These pads are expected to reduce the time to drill the wells and lower the associated cost of each three well pad package by roughly $1 million.

On August 2, 2011, SM Energy closed its previously announced sale of approximately 15,400 net operated acres in LaSalle and Dimmit Counties, Texas for cash proceeds of $226.9 million, before certain adjustments.

In the non-operated portion of the Eagle Ford program, the Company fully participated in Anadarko Petroleum Corporation's drilling program, which operated approximately 10 drilling rigs during the third quarter of 2011.

- Rosetta Resources ROSE - Rosetta Resources (ROSE) Eagle Ford Shale Program - Rosetta successfully completed nine Eagle Ford wells during the period ended March 31, 2011. Production from the area grew 31 percent from the fourth quarter of 2010, increasing from 68 MMcfe/d to 89 MMcfe/d. The Eagle Ford play contributed 58 percent of Rosetta's total production for the quarter.

Overall Eagle Ford well performance continues to surpass expectations. The current Eagle Ford production rate as of May 2, 2011 was 120 MMcfe/d compared to a March 2011 exit rate of 94 MMcfe/d. As a result of increased volumes from Eagle Ford wells, the Company's total annual production rate and exit rate guidance has been adjusted.

Through March 31, 2011, the Company has completed 31 horizontal wells which represent approximately seven percent of the potential net drilling locations. During the first quarter of 2011, Rosetta operated two rigs in the Eagle Ford area drilling nine horizontal wells. Rosetta plans to drill from 10 to 12 Eagle Ford wells during the second quarter and has recently added a third rig to test new areas in the play.

During the first quarter of 2011, Rosetta's contracted crude oil gathering, storage, and trucking terminal located in Catarina, Texas began operations.

Swift Energy SFY - Swift Energy SFY Eagle Ford Shale - South Texas - Eagle Ford Operations - In the Company's South Texas core area, nine operated wells and one non-operated well were completed during the third quarter. In McMullen County, four operated Olmos wells and two operated Eagle Ford wells were completed. In Webb County, two operated Eagle Ford wells were completed and in LaSalle County, one operated Eagle Ford well was completed.

During the first week of November, Swift Energy resumed production and sales of natural gas from the Eagle Ford shale in the Fasken field in Webb County, TX. This production had been shut-in as a result of a third party pipeline failure, which was announced on September 29. Intermittent production curtailments are expected in this area as work necessary to ensure the integrity of the system is performed by the operator.

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

Marathon Oil MRO - Marathon Oil (MRO) Eagle Ford Shale - Marathon Oil is closing on agreements for the previously announced 141,000 net acres from Hilcorp in the Eagle Ford shale in south Texas, additional interests of approximately 19,000 net acres and a gas gathering system. Also, during the fourth quarter, the Company expects to close on another 6,800 net acres from previously announced tag-along rights. The total acquisition cost for these nearly 167,000 acres and the gathering system is expected to be approximately $4.5 billion, including projected closing adjustments and future costs carried by the Company. These transactions are expected to be funded largely from existing cash. Marathon Oil now expects its year-end acreage position across the Eagle Ford to be in excess of 300,000 net acres. Marathon Oil's 2011 Eagle Ford exit rate is forecast to be approximately 18,000 net boepd, of which 80 percent is estimated to be liquids.

Marathon Oil is ramping up to 10 rigs by the end of the year and is scheduled to add a third crew dedicated to hydraulic fracturing in January 2012 and a fourth crew in June 2012. By this time next year, the Company expects to have 17 rigs operating in the play.

Whiting Petroleum (WLL) - Prospective Eagle Ford Acreage Sold for $66.4 Million, $12,542 per Net Acre

During the third quarter, Whiting sold approximately 3,532 net leasehold acres prospective for oil and gas production from the Eagle Ford formation in Karnes, Live Oak and Dewitt Counties, Texas for a total cash consideration of $66.4 million before closing adjustments. The transaction, which was effective July 1, 2011, closed on September 29, 2011. Whiting used the net proceeds from the property sale to reduce the amount drawn under its Credit Agreement.

The non-core acreage sold is located in Kawitt, Nordheim and Three Rivers Fields, which produce from the Speary, Edwards, Wilcox and Eagle Ford formations. Recent net daily production was approximately 4.0 MMcfe from 33 producing wells. The property sale also included 16 shut-in and temporarily abandoned wells. The estimated proved net reserves associated with the producing properties were 1.1 MMBOE. Whiting valued the existing production in the transaction at $22.1 million net of plugging liabilities and the acreage at $44.3 million net of the production value, or approximately $12,542 per net acre.

Plains Exploration & Production - PXP - Plains Exploration PXP Eagle Ford Shale Update - PXP Announces Eagle Ford Shale Flow Rates from the Carmody #1 and Carmody #2 Wells at the Combined Initial Production Rate of 2,919 Net Barrels of Oil Equivalent per Day. In the Eagle Ford asset area, PXP has 5.5 net drilling rigs operating, up from the 3 net rig program originally planned for 2011. Second-quarter daily sales volumes averaged approximately 2,330 BOE per day net to PXP, an increase of approximately 4% to first-quarter 2011 average daily sales volumes. For the month of July, daily sales volumes averaged approximately 4,400 BOE per day net to PXP; and PXP expects to exit the year above 10,000 BOE net per day for this asset area.

The two most recent initial production test rates are as follows: The Carmody Trust 1H and the Carmody Trust 2H, both located in Karnes County, Texas, achieved an initial production rate of approximately 1,745 gross and 1,396 net BOE per day and 1,904 gross and 1,523 net BOE per day, respectively.

During the first half of this year, PXP built 4 production handling facilities and related infrastructure out of the 12 facilities currently planned through 2012 to support future sales volume growth. Each facility has the capability of supporting multiple wells and construction continues on future production facilities. Timing of right-of-way approvals temporarily slowed construction during the second quarter which slowed the process of connecting completed wells to pipelines. With many of the initial logistics resolved, PXP anticipates a ramp up in sales volumes during the second half of 2011.

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 - In Zavala County, TX, Crimson completed the KM Ranch #1H (50.0% WI), targeting the Eagle Ford Shale, and has commenced flow-back operations with results expected in mid-August. The well was drilled to a total measured depth of 12,627 feet, including a 5,800 foot lateral and 20 stages of fracture stimulation. The KM Ranch #1H represents Crimson's first well in Zavala County where Crimson has an estimated 147 drilling locations and approximately 2,300 net acres held by production. Crimson anticipates spudding the KM Ranch #2H (50.0% WI) in the beginning of November subsequent to spudding its first well in the Booth-Tortuga Area, approximately 13 miles to the southwest of the KM #1H, in the beginning of October.

In Karnes County, Texas, Crimson spud the Littlepage McBride #2H (53.0% WI), targeting the Eagle Ford Shale formation, which is drilling at 8,480 feet toward an estimated total measured depth of 15,850 feet. Completion operations are expected to begin mid-third quarter with initial production to follow in September. The Littlepage McBride #2H is located approximately 0.6 miles to the east of the Littlepage McBride #1H well (53.0% WI) which is currently producing 525 Boepd and has produced a cumulative 53,000 Boe since coming online in early April. Due to the success experienced in Karnes County, we have planned a continuous drilling program for the remainder of the year, commencing a well per month beginning in August.

Newfield Exploration NFX - Eagle Ford Shale - Newfield Exploration (NFX) continues to explore and assess its 335,000 net acre position in the Maverick Basin of South Texas. Recent drilling activity in the Eagle Ford Shale has focused on the "southern" portion of the Company's acreage along existing infrastructure. A pilot program in the West Asherton area (Dimmitt County, Texas) is underway with recent wells being drilled from pad locations to help determine optimal development spacing. To date, Newfield has completed 16 wells in West Asherton with average 24-hour gross initial production of 650 BOEPD. Estimated ultimate recovery from these wells is approximately 300 MBOE. The wells have been drilled in as few as seven days and gross completed well costs have averaged approximately $6.6 million.

Year-to-date, the Company has completed 24 wells in the Eagle Ford Shale, six wells in the Georgetown formation and two wells in the Pearsall Shale. Current gross production from the Maverick Basin is approximately 7,000 BOEPD. Newfield's average working interest in the region is approximately 80%.

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.

Update - Eagle Ford Shale - We have assembled approximately 22,000 net acres in the Eagle Ford trend of Texas and entered into agreements with Ramshorn Investments, Inc. (“Ramshorn”), an affiliate of Nabors Industries LTD (“Nabors”), to jointly acquire additional acreage and implement a drilling and development program. A wholly-owned subsidiary of GeoResources, Inc. retains a 50% working interest (currently about 11,000 net acres) and will serve as operator within an Area of Mutual Interest (“AMI”), located in Southwest Fayette County, Texas, which covers approximately 140,000 acres. Pursuant to the Participation and Joint Operating Agreements, Ramshorn has purchased a 50% interest in the acreage and will drill six horizontal obligation wells for the joint account. In addition, the parties have agreed to acquire additional acreage within the AMI. We intend to begin drilling as soon as reasonably possible, perhaps by the end of 2010.

Goodrich Petroleum GDP - Goodrich Petroleum (GDP) Eagle Ford Shale Update - Eagle Ford Shale, LaSalle and Frio Counties, Texas

The Company completed the following five Eagle Ford Shale wells during the quarter, with an average 24-hour peak production rate of 907 BOE per day:

Burns Ranch 20H (67% WI), a 5,960 foot lateral with 21 frac stages, at a 24-hour peak production rate of 1,080 barrels oil equivalent ("BOE") per day;
Burns Ranch 2H (67% WI), an 8,320 foot lateral with 29 frac stages, at a 24-hour peak production rate of 1,004 BOE per day;
Burns Ranch 3H (67% WI), a 5,160 foot lateral with 19 frac stages, at a 24-hour peak production rate of 953 BOE per day;
Burns Ranch 18H (67% WI), a 5,060 foot lateral with 19 frac stages, at a 24-hour peak production rate of 883 BOE per day;
Burns Ranch 19H (67% WI), a 5,940 foot lateral with 21 frac stages, at a 24-hour peak production rate of 613 BOE per day.

The Company completed two additional Buda Lime wells in the quarter:

Carnes 7H (65% WI), an un-stimulated 4,215 foot lateral, at a 24-hour peak production rate of 1,167 BOE per day and a 30-day average of 871 BOE per day (762 BO and 655 Mcf per day);
Burns Ranch 30H (67% WI), a 5,060 foot lateral with 19 frac stages, at a 24-hour peak production rate of 500 BOE per day.

The Company is in completion phase on the following wells:

Burns Ranch 35H (67% WI), an 8,880 foot lateral with 32 planned frac stages;
Burns Ranch 16H (67% WI), a 5,710 foot lateral with 20 planned frac stages;
Burns Ranch 22H (67% WI), a 5,520 foot lateral with 20 planned frac stages;
Shiner G-1 (67% WI), a 4,190 foot lateral in the Buda Lime;
Shiner G-4 (67% WI), a 4,130 foot lateral in the Buda Lime;

Penn Virginia PVA - Penn Virginia (PVA) Eagle Ford Shale Update - During the third quarter of 2011, we drilled 10 (8.3 net) operated wells in the Eagle Ford Shale, all of which were successful. We currently have four rigs drilling our 25^th through 28^th wells, four wells that are waiting on completion (WOC) and 20 (16.7 net) wells that are producing. As shown in the table below, our initial 20 wells in the Eagle Ford Shale have had an average peak gross production rate of 1,012 BOEPD per well (688 BOEPD 30-day average per well for 17 of these wells). In the third quarter of 2011, we increased our net Eagle Ford Shale leasehold position by approximately 2,000 net acres to 14,700 net acres. Thus far in 2011, we have added 7,300 net acres in Gonzales County for approximately $27 million. We have identified approximately 140 horizontal well locations on our current acreage position of approximately 17,900 gross acres, including the 24 wells that have been drilled. Our full-year 2011 guidance anticipates up to 33 (27.5 net) wells, with up to 12 (10.0 net) wells to be drilled during the fourth quarter of 2011. We continue efforts to expand our Eagle Ford Shale position in Gonzales County and other prospective areas in the play through additional leasing and selective acquisitions.

Comstock Resources CRK - Eagle Ford Shale - In the South Texas region, the Company has drilled twelve Eagle Ford shale wells (12.0 net) in the first nine months of 2011. Comstock completed eight wells (8.0 net) including one well that was drilled in 2010. These wells had an average per well initial production rate of 683 barrels of oil equivalent ("BOE") per day. In the third quarter of 2011, Comstock completed four wells in the Eagle Ford shale. The Cutter Creek #1H was drilled to a vertical depth of 9,970 feet with a 4,824 foot lateral. This well was tested at an initial rate of 575 barrels of oil per day and 0.2 MMcf of natural gas per day or 608 BOE per day. The Forrest Wheeler #1H was drilled to a vertical depth of 11,142 feet with a 5,458 foot lateral. This well was tested at an initial rate of 480 barrels of oil per day and 0.7 MMcf of natural gas per day or 597 BOE per day. The Rancho Tres Hijos "A" #1H was drilled to a vertical depth of 10,911 feet with a 4,512 foot lateral. This well was tested at an initial rate of 465 barrels of oil per day and 0.6 MMcf of natural gas per day or 565 BOE per day. The Jupe "A" #1H was drilled to a vertical depth of 8,282 feet with a 7,101 foot lateral. This well was tested at an initial rate of 197 barrels of oil per day and 0.1 MMcf of natural gas per day or 218 BOE per day. All of the reported well results were obtained while following Comstock's restricted choke program. Currently, Comstock also has five Eagle Ford shale wells that are being completed. Comstock has increased its Eagle Ford shale acreage in South Texas that is prospective for oil to approximately 28,000 net acres. Comstock completed lease acquisitions in the Eagle Ford shale that added approximately 6,000 net acres during October 2011.

Gastar Exploration GST - Also during the third quarter, we began drilling our first Eagle Ford test well, the Wildman #7H and are currently waiting on service company availability to fracture stimulate the well, which is expected to occur in late December. A rig is currently moving to drill our second well to test the Glen Rose formation, the Wildman #8H, which should spud later this month.

Abraxas Petroleum (AXAS) - Abraxas Petroleum (AXAS) Eagle Ford Shale Update - In DeWitt County, Texas, Blue Eagle participated in a non-operated horizontal well targeting the Eagle Ford formation with its 43.9% working interest. The well, the Matejek Gas Unit 1, was drilled to a total measured depth of approximately 17,865 feet, including a 3,600 foot lateral, and will be completed with a multi-stage fracture stimulation in the near future. Abraxas currently owns an approximate 50% equity interest in Blue Eagle, which is a joint venture between Abraxas and Rock Oil Company, LLC.