Barnett Shale

Barnett rig count lowest in a decade

Rigs in the Barnett Shale took a big drop this week, falling by seven to 29, the lowest since at least January 2003, according to RigData. Nearly all the field’s active rigs are in areas holding crude oil or natural gas liquids. Wise County leads with 11, followed by Montague with four, and Denton and Johnson with three each.

Nationally there were 1,762 active rigs, up three, said Baker Hughes. Gas rigs declined by four to 421, and oil rigs rose seven to 1,337.

-- Jim Fuquay

Barnett rig count up third straight week, to 40

Active drilling rigs in the Barnett Shale rose by three to 40, the third straight week of gain and a rebound from the 30 rigs that were running the week of Dec. 28, the lowest for the field in years. It's the busiest for the field since the week of Nov. 9, when there were also 40 active rigs, according to RigData. As has been the case for the past two years, activity was concentrated in Wise and Montague counties, which had 18 rigs seeking the oil and natural gas liquids found in that part of the Barnett. Tarrant, Denton and Jack counties each had four rigs.

-- Jim Fuquay 

Barnett rig count up three to 36 on Wise County drilling

Wise County's 10 active rigs pushed the Barnett Shale rig count to 36, up three from a week ago, according to RigData. Well over half the North Texas field's rigs are in the wet and "oily" portion of the field's northwest reaches, including Wise, Montague with six and Jack with five. Palo Pinto County, which doesn't often enter the picture, had a new vertical well by G&F Oil Inc., which also has a rig in Jack County. Johnson County had three active rigs, up from the one or two the former hotspot has been running in the past year. Devon Energy as usual is the busiest operator, with nine rigs, followed by EOG Resources with four and EnerVest Operating with three each

Nationally, rigs actively looking for oil and natural gas was down a dozen to 1,749. Houston-based Baker Hughes said iFriday. There were 1,316 rigs were exploring for oil and 429 for gas. Four were listed as miscellaneous. A year ago there were 2,008 active U.S. rigs.

-- Jim Fuquay

Barnett rig count down 8 to 30

Active drilling rigs in the Barnett Shale took an unusually large drop this week, down eight to 30, as icy weather could have delayed activity in the field, most of which received snow Christmas Day. Half the area's rigs were in Montague and Wise counties, where operators migrated months ago in search of oil and liquids-rich gas. Devon Energy was running seven rigs in four counties, while EOG Resources had five, all in Montague and Cooke counties, according to RigData. Montague was busiest with eight rigs, followed by Wise with seven, and Parker and Tarrant with three each.

Nationally, the rig count dropped 11 to 1,763. Rigs seeking crude oil were down 13, to 1,327, and rigs seeking natural gas were up two, to 431. Five were miscellaneous. 

-- Jim Fuquay

Mineral Owner Mart is a new online resource aimed at mineral rights owners who are interested in leasing their property or selling their royalties after production is established. Blake Thompson says he launched the project in early September after working about five years as an independent landman in the Barnett Shale and elsewhere. A listing doesn't cost the mineral rights owner anything. Thompson says he typically earns a 10 percent commission on a transaction, sort of like an auction house  would do when it adds a "buyer's premium" to the selling price. Sellers can name a price or simply ask for an offer.

Prospective buyers can search Mineral Owner Mart by state and county. For example, the site shows nine active listings in Montague County, reflecting the area's status for oil and "wet" gas production.  

A link to the site is here.

-- Jim Fuquay

Pioneer Natural Resources to sell Barnett holdings

Irving-based Pioneer Natural Resources, which in recent years moved heavily into the liquids-rich portions of the Barnett Shale, said Thursday it is looking to sell its properties in the North Texas field. It says it has about 155,000 gross acres, "of which approximately two-thirds are located in the liquids-rich Barnett Shale Combo play" that is in the field's northwestern reaches. "The Company has grown production to approximately 7,000 barrels oil equivalent per day, of which approximately 55% is liquids (oil and natural gas liquids) and 45% is dry gas," it says. CEO Scott Sheffield, in a prepared statement, said: “The sale of our Barnett Shale properties will allow us to strategically reallocate capital to our higher-return, core assets in the Spraberry vertical play, the horizontal Wolfcamp Shale play and the Eagle Ford Shale. We plan to utilize the net proceeds from the divestiture to reduce indebtedness under Pioneer's credit facility.”

Pioneer said it expects to open a data room -- a location at which interested parties can inspect records and information -- in October. It hopes to complete a sale during 2013's first quarter. RBC Richardson Barrhas been engaged to market the properties.

-- Jim Fuquay

 

The Barnett Shale's oil play

Even as drilling activity has plummeted in the Barnett Shale from 2008's highs, rigs continue to work in the oil window of the big North Texas field. EOG Resources started it, but more companies are looking for oil and valuable condensate in an area that made its name in natural gas. The Star-Telegram takes a look at the play in Montague, Wise and other counties in the northwest reaches of the field. The story is here.

-- Jim Fuquay