This Natural Gas Play is Blossoming

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

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.

Natural gas giant Chesapeake Energy's (NYSE: CHK  ) strategy to increase liquids production in the coming years is what interests me. The company's management aims for oil and natural gas liquids to account for 30% to 35% of total production by 2015. This is where the Eagle Ford shale play looks interesting. Though this region currently accounts for just 1% of the company's total production, the liquids-rich play is capable of scaling up substantially.

With 600,000 net acres in the Eagle Ford, and a joint venture with Chinese driller CNOOC(NYSE: CEO  ) to develop these reserves, expect this shale play to generate a substantial chunk of revenue for Chesapeake.

Source: Motley Fool 

For Eagle Ford Investments or Energy News