EOG Resources announce third quarter results showing the Eagle Ford is the company's highest return play.
During a Q3 earnings call, EOG executives reported a Q3 net loss of $4.1 billion, compared to third quarter 2014 net income of $1.1 billion. The company has worked to position itself for a strong 2016 by cutting costs including spending 17% less for lease and well expenses, reducing the cost to move oil by 11 % and reducinggeneral and administrative costs by 6%.
CEO Bill Thomas said the company is right on track with its 2015 game plan that focuses on the five objectives:
- Maximize return on capital invested
- Improve well performance through technology and innovation
- Achieve significant cost reductions through sustainable efficiency gains
- Take advantage of opportunities to add drilling inventory
- Maintain a strong balance sheet
EOG's Eagle Ford operations proved to be company's high return play. Highlights include:
- High density completions to 95 percent of the Eagle Ford wells planned for the year
- Actively testing tighter well spacing in the lower Eagle Ford with stacked-staggered "W" patterns
- Increased the amount of acreage held by production to 91 percent of EOG's 561,000 net acres in the Eagle Ford oil window.
- Gonzales County: completed the Phoenix Unit #4H and #5H with average initial production rates per well of 3,815 Bopd, 415 Bpd of NGLs and 2.8 MMcfd of natural gas.
- McMullen County: completed the Naylor Jones Unit 26 #1H and #2H in a two-well pattern with average initial production rates per well of 2,650 Bopd with 150 Bpd of NGLs and 1.0 MMcfd of natural gas.
Read more at eogresources.com