Now, An Update On The Eagle Ford -- Zeits

Over at SeekingAlpha:

The East Texas Eagle Ford play has received endorsement from a new important participant, Apache Corporation. Apache, who is a significant leaseholder in the Giddings area of East Texas, has confirmed its plans to ramp up drilling activity targeting the Eagle Ford in 2014. Apache is already running three rigs in the play, and plans to bring in a fourth rig next month. This will make Apache the most active driller in the play, alongside Halcon Resources, who is currently operating three rigs. Apache plans to spend $300 million in 2014 to drill 40+ gross horizontal wells. The company's initial focus will be on the portion of its acreage that is immediately adjacent to Halcon's original focus area.

Apache's participation in the play is important from two perspectives:

• First, the E&P heavyweight's vote of confidence is credible. Apache has significant technical knowledge of the East Texas Eagle Ford, and takes credit for discovering this play six years ago (drilling results for Apache's first-generation wells are discussed at the end of this note). Apache's renewed interest in the play - which seems inspired by Halcon's and Clayton Williams' success - sends a positive signal regarding the potential upside this emerging play may offer.

• Second, the addition of another "anchor" operator with a deep technical bench and extensive financial resources will accelerate the play's delineation and contribute to the well design and completion optimization effort.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or what you think you may have read here. I have no plans to invest in Apache, but the article certainly got my attention regarding EOG, HK, Clayton Williams.