Blue Dolphin buys Eagle Ford facility

Houston-based Blue Dolphin Energy Co. (OTCQB: BDCO) has acquired a processing facility in the Eagle Ford shale play.

Blue Dolphin bought the 56-acre Nixon Crude Processing Facility from a privately held company in an all stock transaction.

The closing of the transaction is subject to the completion of a non-recourse financing to complete refurbishment of the Nixon Facility and approval by Blue Dolphin’s (OTCQB: BDCO) stockholders.

The Nixon Facility is in the final phase of refurbishment and should restart this quarter. The refurbished facility will separate input crude oil and condensate into diesel and jet fuel for sale into nearby markets.

Source: Business Journal

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Petrohawk Buyout Makes Bakken and Eagle Ford Lease Holders Good Long Ideas

BHP Billiton (BHP) agreed to pay $15B ($12B in cash and $3B in assumed debt) for Petrohawk (HK) late Thursday July 14, 2011. This amounted to $37.25/share. A huge premium given HK closed Thursday at $23.49/share. This effectively raises the prices on all of the oil leases in the major oil shale plays. HK had its acreage spread between the Haynesville, the Eagle Ford and the Permian Basin. Most of its assets were in natural gas.

This buyout makes oil leases in these areas more expensive. It means demand for these leases is going up. It means many big leaseholders in the most desirable plays, the Bakken and the Eagle Ford, will likely see their share prices rise. This will be partially due to the short term increase in the value of their leases, but it is also due to the long term expected BONANZA nature of their holdings. There is little doubt this will boost the companies small enough to be buyout targets. However, logic says the constant expectation of further buyouts (and the actuality of some) will even boost the big caps by extension, especially those who have large lease holdings in the Bakken and the Eagle Ford. Given the approximate 50% premium to the stock price that BHP just paid for HK, it likely means the small companies are going to command big premiums. 

Source: Seeking Alpha

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Drilling, Hydraulic Fracturing used in Ealge Ford Shale

McMULLEN COUNTY — Chesapeake Energy Corp.'s rig jutted 165 feet into the sky and sat off a rocky road that was a long and jolting ride from the nearest paved stretch in a remote part of the county.

The rig punched a hole 9,278 feet down — more than a 13/4 miles — before turning a corner to bore 6,408 feet horizontally through the Eagle Ford shale in South Texas, a vast formation under 24 counties that stretches 400 miles from East Texas to Webb County and the border.

In just the past few years, technological advances, including horizontal drilling and a technique called hydraulic fracturing, have made it possible to tap the oil and natural gas trapped in the Eagle Ford's tight rock.

It costs about $7 million to drill and complete a well using hydraulic fracturing in the Eagle Ford shale, Chesapeake spokesman Silver Vasquez said.

Source: My San Antonio 


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Fracking Brings Boom to South Texas Towns

PLEASANTON, TEXAS-The technique of “fracking” has turned the oil and gas industry around and made experts take a second look at domestic oil exploration.  While it may be a controversial way of getting oil from the ground, it’s also pumping in millions of dollars into the economy in south Texas everyday. 

The town of Pleasanton seems to be a gateway of sorts to the Eagle Ford shale area.  Eagle Ford is what’s driving this big boom. You can tell by just the traffic in Pleasanton that’s there’s something different going on.  More businesses, more money, more people. Chris’s Café is a favorite lunch stop for people here, a particular favorite of folks working long hours in the oilfield.  

Xavier Gonzalez of Capital Well Services told us, "Long hours, the hours can be long 10-12-16 hour days, a lot of 24 hour businesses. 

For Chris’s Café owner Mary Rodriguez, it’s changed her world. "In the restaurant business, your busy some days and it’s slow some days.  But now, like you see it today, it’s everyday."

Source: WOAI

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