Marathon Oil reported earnings today and impressive Eagle Ford results accompanied the news. Marathon has driven Eagle Ford drilling times down to 24 days across its acreage and has increased the number of wells it expects to drill by 20 to 250-260 in 2012.
“Our investment in the Eagle Ford shale a little more than a year ago, and our bolt-on acquisitions since then, continue to deliver value beyond original expectations. Not only have we improved the speed and efficiency of our drilling and completions there, we also continue to optimize well spacing which could significantly increase drillable locations and recoverable reserves.
Marathon’s Record Well
In the quarter, Marathon drilled 78 wells and brought 73 to production. With one of those completions, Marathon brought on a well that came close to EOG’s Record Eagle Ford Well. The Burrow 2-H in Gonzales County produced at a peak 24-hour rate of 6,275 boe/d. Almost 75% (4,646 boe) was attributable to oil and condensate.
The record well contributed to impressive production growth too. Production in the third quarter averaged approximately 40,000 net boe/d – 33,000 b/d of liquids and 46 mmcfd of natural gas. That’s up from 18,000 b/d and 18 mmcfd in the second quarter. As of November, production had reached 60,000 net boe/d, a 50% increased from the third quarter average!
Marathon also closed a previously announced deal for 4,300 net acres in South Texas for $232 million. The deal added 40 net drilling locations and 2,900 boe/d of production.