EOG Resources’ Monster Wells Are Getting Bigger

Largest Well to Date Produced Almost 4,600 Barrels in One Day
EOG Resources South Texas Eagle Ford Map

EOG South Texas Eagle Ford Map | Click to Enlarge

EOG Resources‘ monster Eagle Ford wells are getting bigger! The company brought one of its best producing wells to date in the third quarter of 2012. The Baker-DeForest Unit #4H tested at 4,598 b/d of oil and 4 mmcfd of rich natural gas at normal choke rates. At LLS oil prices, the well is yielding gross revenue of almost $500,000 per day! It doesn’t matter what the decline curve looks like. A well like this will potentially pay back in the first month of production. It’s a boon for mineral owners too. The well will pay between $50,000-$100,000 per day to royalty owners. You can read more about the company’s biggest well here: EOG Reports Record Eagle Ford Well.

In Gonzales County, the Baker-DeForest Unit #4H came on line at 4,598 barrels of oil per day (Bopd) with 488 barrels per day (Bpd) of natural gas liquids (NGLs) and 2.9 million cubic feet per day (MMcfd) of natural gas. The Baker-DeForest Unit #1H, #2H, #3H and #12H were turned to sales at initial rates ranging from 3,346 to 4,216 Bopd with 457 to 537 Bpd of NGLs and 2.7 to 3.2 MMcfd of natural gas. EOG has 100 percent working interest in these five Baker-DeForest wells.

EOG’s monster wells are are defined by the company as having initial production rates of 2,500-4,800 barrels of oil production per day plus natural gas and NGLs. The company completed 16 monster wells in the second quarter of 2012 and brought on 12 more in the third quarter. [Read more…]

Eagle Ford Bank Deposits Setting the Pace in Texas

Bank deposits in South Texas are benefitting from a growing population of skilled workers who have higher paid oil & gas jobs and mineral owners who are reaping the benefits of new found royalties. Bank deposits grew a little over 10% from 2008-2011 across Texas, but deposits in South Texas grew more than 15%.

While that’s impressive, I expect the gap will only widen in the next couple of years. Development activity just began hitting its stride in 2011. Royalties are trickling in, but there is much more to come. In many wells, there are dozens to hundreds of people cashing royalty checks once production starts. [Read more…]