Plains Exploration & Production (PXP) delivered strong Eagle Ford production growth numbers. The company averaged more than 25,000 boe/d in the second quarter, up from just a little over 2,000 boe/d for the same period in 2011.
CEO James C. Flores commented:
"We had an impressive quarter with continued robust Eagle Ford expansion and solid California operating performance demonstrating the strength of the Company's underlying oil asset base.........In the short-term, PXP is providing stellar execution of its Eagle Ford growth plan. We are not only seeing strong production growth but also beginning to see efficiencies across all aspects of our Eagle Ford activity."
Plains plans to spend approximately $600 million per year through 2015 to develop its Eagle Ford properties, so don't expect this to be the last quarter you hear impressive growth numbers from the company.
PXP's Eagle Ford assets consist of approximately 60,000 net acres along the Wilson and Karnes county line. The company expects total resource potential will reach as high as 172 mmboe from 500 plus future locations.