The Eagle Ford shale play is a relatively new development compared to similar shale plays in the United States. Yet the promise this South Texas area holds is immense. The second quarter has shown some marked progress in terms of production and development of reserves. From major leaseholders to small-cap players, the progress is evident. Let's take a look at how this region fared in the past quarter.
The liquids seekers
Natural gas giant Chesapeake Energy's
With 600,000 net acres in the Eagle Ford, and a joint venture with Chinese driller CNOOC
The Gonzales County wells have each begun initial production at more than a thousand barrels per day. If a tighter spacing pattern (i.e., more wells per unit area) proves economically viable, reserves are bound to increase significantly. EOG Resources will be a major player in this region in the near future.
Pioneer Natural Resources
Still strong on gas
The shale play continues to provide excellent results for Petrohawk
At the end of 2010, proved reserves for this region stood at a huge 736 billion cubic feet equivalent (Bcfe) of which 570 Bcfe was undeveloped. With $950 million allotted this year for the development of the Eagle Ford play, one can expect a substantial production hike in the days to come.
For SM Energy
Canada-based Talisman Energy
Foolish bottom line
The Eagle Ford shale play is not the predominant producer of oil and gas in the United States in terms of absolute numbers. However, it has been steadily increasing production. With the current pace of development, it's only a matter of time before this promising shale play will be compared to the likes of Haynesville and Barnett. Also, with some companies just starting out on production there, Foolish investors should definitely take note. Eagle Ford just may have the answers to ever-growing energy demand.
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