Fresh Round of Deals: Drilling and Refrac Activity Shape Eagle Ford’s Future
Since its emergence in 2008, the Eagle Ford Shale has become a major hotspot in U.S. shale development, initially known for producing dry gas from its deeper sections before rapidly expanding into the wet gas and oil windows. Over the past 16 years, this play has seen thousands of wells drilled and completed across the Lower and Upper Eagle Ford intervals, covering an area of approximately 400 miles, and spanning 22 counties in South Texas.
While the Eagle Ford Shale is considered one of the more mature onshore resource plays in the U.S., many operators believe there is still significant potential for future growth. This optimism is evident in current production trends, which are bolstered by new asset acquisitions and innovative approaches to both drilling new wells and refracturing existing ones.
Rig Activity and Production Trends
As shown in Figure 1, there were 55 active rigs operating in the Eagle Ford as of late March, with 50 focused on oil drilling. This marks a decrease of 15 rigs from the same period in 2023. Rig activity has historically been a key indicator for productivity, but there is a growing optimism among Eagle Ford operators that refracturing existing wells could be an effective method to grow production on existing assets without requiring capital-intensive drilling activity. 
Figure 1. Eagle Ford rig activity over time – Source: Baker Hughes Rig Count
This focus on rig activity and refracs is also a result of the Eagle Ford currently having the fewest drilled but uncompleted (DUC) wells among the seven major oil and gas-producing horizontal shale basins. According to the data provided by the EIA, at the end of March 2022 the Eagle Ford had 657 DUCs, ranking third behind the Anadarko and Permian Basins. By March 2023, this number had fallen to 502, and by March 2024, it had decreased further to 347, the lowest DUC count after the Bakken Shale, which had 322 DUCs. Notably, the Eagle Ford was the only shale region to experience a net decline in DUCs from December 2020 to March 2023 (Figure 2).
Figure 2. Eagle Ford DUC count over time – Source: EIA
According to TGS Well Data, oil production from the Eagle Ford reached approximately 1.147 million barrels per day (bbl/d) by March 2024, representing a net increase of 24,000 bbl/d from the same time last year. Additionally, natural gas production rose by 370 million cubic feet per day. To maintain this trend of incremental production growth, operators will need to rely not only on newly drilled wells, but also refracturing existing wells across their asset base.
Optimizing Production Through Refracturing
The Eagle Ford Shale continues to be an attractive play due to its flexibility in drilling for crude oil, wet gas, and dry gas at varying depths, allowing operators to adapt to market conditions. Its proximity to Gulf Coast refineries and export facilities further enhances its appeal. Figure 3 shows the active producing Eagle Ford wells colored by top 10 operators in the area, utilizing the TGS Well Data Analytics application. 
Figure 3. TGS Well Data Analytics application displays active producing wells in the Eagle Ford, color-coded by the top 10 operators, with accompanying production plots and type curves.
Companies like Devon Energy are optimizing their Eagle Ford operations through successful refracturing efforts. In Q1 2024, Devon's production increased by 8% from the previous year. Devon entered the Eagle Ford in 2014, initially concentrating on primary development. As the number of available drilling locations declined, the company shifted its focus to secondary and tertiary recovery strategies. Refracturing has become a key element of their development program, aiming to not only restimulate existing fractures, but also create new reservoir pathways, significantly enhancing resource potential and increasing reserves by over 50% among several hundred refrac candidates. Advanced diagnostic tools have verified the success of these refracturing efforts in creating new propped pathways.
Using TGS Well Data, we analyzed a Devon well that underwent a refrac at the end of 2023. By comparing the Decline Curve Analysis (DCA) from the original completion, the remaining reserves increased from 34 million barrels of oil to 134 million barrels of oil. This refrac added an additional 100 million barrels of oil reserves, as shown in Figure 4.
Figure 4. Monthly oil Production data for Devon well – Original Completion, Refrac, and Forecast by TGS Well Data
While refracturing is now possible in many of the shale basins, the Eagle Ford is particularly well-suited for this technique due to its unique rock qualities and maturity as a shale play. Many established operators in the play have consolidated their positions, making it challenging to acquire new acreage, especially in the core areas.
Verdun Oil's Strategic Moves
Verdun Oil is making significant advancements in the Eagle Ford, particularly with its refracturing operations. According to the company press release, Verdun Oil holds over 285,000 net leasehold acres and produces around 90,000 barrel of oil equivalent per day across the Eagle Ford Shale trend and the Giddings Field. Verdun has identified approximately 700 well candidates for recompletions, which is a major component of their strategy. They have been pioneers in implementing recompletion technology, having performed the first full liner isolation refrac in the Eagle Ford in April 2018. Since then, Verdun has recompleted around 100 wells, resulting in over 14 million incremental barrels of oil equivalent. This focus on refracturing allows Verdun to maximize production from existing wells, making them an attractive target for acquisition by larger players in the Eagle Ford.
Strategic Acquisitions and Future Outlook
Recent acquisitions by companies such as WildFire Energy, INEOS Energy, and Baytex Energy underscore the region's potential for both production growth and strategic positioning in the U.S. energy market. Repsol, following its acquisition of assets from INPEX, has focused on optimizing production through new drilling, extending lateral lengths, and refining completion designs. Meanwhile, Crescent Pass Energy has successfully increased production through horizontal well refracturing. The influx of new players and innovative techniques suggests that the Eagle Ford Shale will remain a key area for oil and gas development, driven by technological advancements and strategic acquisitions.
As operators continue to explore new opportunities and refine their strategies, the Eagle Ford Shale's legacy as a significant player in the U.S. energy landscape is poised to endure, supported by ongoing innovation and investment.
Leveraging TGS Well Data Analytics enables swift comparative analysis and benchmarking. For further details on Well Data Analytics or to schedule a demo, please contact us at WDPSales@tgs.com.
