EOG Resources added 305 net Eagle Ford wells in 2012, while running an average of 23 wells throughout the year. With improving well results and successful downspacing test, EOG has increased its estimate for recoverable reserves from 1.6 billion boe to 2.2 billion boe (38% increase). At current activity levels, that provides a twelve year drilling inventory.
If you are a stockholder in oil and gas companies, you are hoping everything lands where Mark Papa sees it. He believes unconventional gas and oil companies have been undervalued long enough.
EOG has reported recoverable reserves up to 900 mmboe in the Eagle Ford Shale, but Papa mentions that the company estimates there is as much as 21 Billion barrels of oil in place across EOG’s acreage. The 900 mmboe equates to a recovery factor of less than 5%. Grow the recovery to 10, 15, 0r 20% and it could mean billions of dollars for stockholders. [Read more…]
EOG becomes one of the largest acreage holders in the Eagle Ford Shale with the announcement of its acreage position.
HOUSTON – EOG Resources, Inc. (EOG) today announced crude oil discoveries in South Texas, North Dakota and Colorado. Potential reserves were increased on its Bakken/Three Forks and Fort Worth Barnett Shale Combo crude oil and liquids-rich acreage. In addition, natural gas reserve estimates were also raised for its Haynesville/Bossier and British Columbia Horn River Basin acreage.
“These results reflect EOG’s concerted effort over the last four years to capture early mover positions in new crude oil and liquids-rich plays amenable to horizontal drilling,” said Mark G. Papa, Chairman and Chief Executive Officer.
Crude Oil Discoveries
In South Texas, EOG has accumulated acreage across six counties in the Eagle Ford Play where it has drilled 16 delineation wells over a 120 mile trend. Based on initial drilling and production results, as well as technical and core analysis, the estimated reserve potential on EOG’s 505,000 net acre position in the oil window is approximately 900 million barrels of crude oil equivalent (MMboe), net after royalty (NAR). Development of this high rate-of-return crude oil play is underway with the first significant production impact projected for 2011.
Read the full press relase at eogresources.com