In what could be a case of going where the big wells are sure to be hit and marginal wells to be avoided, one Texas company is focusing on the Eagle Ford. It’s very much a reminder of the warning given the Oklahoma legislature this week by Oklahoma Oil and Gas Association chairman Wade Hutchings. He said if the legislature continues to raise the state’s gross production tax, companies will go for the big wells they know exist and will avoid marginal wells, thereby exiting the state for Texas and North Dakota.
Houston’s WildHorse Resource Development Corporation announced it has closed the $217 million sale of its North Louisiana assets. The company said that subsequent to the closing of the divestiture, 100% of its assets are located in the Eagle Ford Shale and Austin Chalk of East Texas.
As a result of the sale, the company was able to increase its borrowing base from $875 million to $1.05 billion.
“The sale of our North Louisiana assets completes the transition of WRD to a pure-play in the Eagle Ford and Austin Chalk,” said Jay Graham, Chairman and Chief Executive Officer of WRD. “As a pure play, we will be able to focus entirely on our high-return Eagle Ford and Austin Chalk assets and projects such as the construction of our in-field sand mine.”
He said the proceeds from the sale of the North Louisiana assets will help fund the company’s Eagle Ford program. The company’s 2018 program involves 404,000 acres and it intends to bring online 60% of its wells on four-well pads testing a variety of spacing assumptions.
The company also anticipates to methodically develop the Eagle Ford asset with more than 30 years of inventory.
