American Oil and Gas Reporter - October 2015 - 71

SpecialReport: ED&P: Eagle Ford
tar Resources has exceeded those returns
amid lackluster commodity prices. For example, he notes that 60 percent of the company's 2015 production is hedged at $83
a barrel and 60 percent of its 2016 budget is hedged at $77 a barrel.
"We are always heavily hedged," he affirms.
Lonestar's primary focus is the Eagle
Ford's oil window, Bracken says, with
crude constituting 74 percent of the company's second-quarter production, and
NGLs and natural gas accounting for 12
and 8 percent, respectively. "But we recently drilled and completed our first
two wells in the gas condensate window,"
he continues. "They may prove better than
the oil wells. Although we are not allowed
to export condensate, prices have improved
significantly since Pioneer and its partners
have been able to export stabilized condensate."
Lonestar Resources also has tried a
number of ways to shrink costs and boost
efficiency, Bracken relates. "Since 2012,
we have pad drilled and zipper fractured
nearly every well," he observes. "It is a

benefit to amortize facilities' costs over
multiple wells. With multiple wells on a
pad, we also can set three strings of surface casing back-to-back-to-back, which
allows us to never alternate mud systems,
which saves time and money."
Bracken also notes that parts of the Eagle Ford play allow for older Austin
Chalk completions, which can cause circulation losses. With that in mind, he indicates Lonestar has implemented a brinebased mud that costs about a tenth as much
an oil-based mud. In areas that suffer circulation loss, he continues, the company
relies on the brine-based mud to minimize
costs.
Bracken reports that Lonestar often
drills six wells a pad-three updip and three
downdip-that extend for considerable
distances. "We have become proficient at
drilling 8,000-foot laterals," Bracken describes. "We have focused on leasehold acquisitions that let us drill longer laterals.
In this price environment, it is imperative
to drill 8,000-foot laterals."
He says the company is utilizing 250to 300-foot fracture stages and then sets

its perforation clusters at a spacing applicable to the particular lateral. By reducing cluster spacing but maintaining the
same amount of proppant-1,500-1,600
pounds a foot-the company has increased
its wells' EURs, Bracken maintains.

Getting A Lift
Encana Corp. is a relative newcomer to
the Eagle Ford after purchasing 45,500
acres in a $3.1 billion deal in June 2014.
Although adverse weather and flooding in
South Texas impacted the company's
second-quarter results, Jeff Balmer, vice
president of Eagle Ford operations, says
Encana's inventory almost has doubled
and the company plans to expand further.
"We have more than 375 wells in the
ground, mostly in Karnes County, Tx.," he
observes. "We are running two rigs and are
on track to drill 55-65 wells this year. We
are mindful of our capital program, but we
are getting excellent returns with great productivity alongside significant improvement. This is a great area and we are making it better."
Among the techniques that Balmer says

OCTOBER 2015 71



American Oil and Gas Reporter - October 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - October 2015

Contents
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