Enterprise Products, the largest U.S. master limited partnership, is bullish in its outlook for the Eagle Ford Shale in South Texas, saying the shale play that is believed to hold much more oil than natural gas, could see production rise to 750,000 to 800,000 barrels per day.
Enterprise (EPD) executive Mark Hurley made the comments at an RBC Capital Industry conference in New York today. He said the new outlook tops previous estimates of 400,000 to 500,000 barrels per day and noted that some have predicted the play could generate 1 million barrels per day, according to Platts.
Carrizo Oil & Gas (CRZO) announced today that it will pay $21.5 million in cash, or $1,650 per acre, up front for 13,000 acres in La Salle County, Texas, which is in the Eagle Ford Shale. The deal will give Texas-based Carrizo 33,000 acres in Eagle Ford.
In total, Wells Fargo analyst David Tameron estimated the Carrizo deal at $5,500 per acre or a total of $71.5 million, calling that a ''good price compared to recent transactions.'' Platts reported. Carrizo is looking to boost its oil output through increased Eagle Ford exposure.