Pioneer Natural Resources announced the company achieved excellent results from its Eagle Ford operations for the third quarter of 2017, along with a high level of efficiency company-wide.
EOG: Eagle Ford Remains Resilient
For 2017, Pioneer has focused on a drilling program in Karnes, DeWitt and Live Oak counties that include 20 total wells. The company used this program to test longer laterals with wider spacing and higher intensity completions in the new wells. For the remainder of the year, Pioneer plans to increase its 2017 capital budget by $50 million.
“Pioneer’s ramping up our 2017 drilling and completion program in the Eagle Ford. The plan is to complete and POP 20 wells during the year, including nine DUCs drilled about a year ago and on the 11 new wells, testing design changes expected to significantly increase recovery. The design changes include longer laterals, increased well spacing, tighter counter cluster spacing and higher proppant concentrations. The cumulative effect of the design changes are expected to yield EURs averaging 1.3 million barrels equivalent, with IRRs ranging from 30% to 40% on the new wells.”
Third Quarter Highlights
Third-quarter production was negatively impacted by 3,500 barrels oil equivalent per day (BOEPD) due to Hurricane Harvey and unplanned downtime at a gas processing facility. Other highlights include:
- Producing 276 thousand barrels oil equivalent per day (MBOEPD), an increase of 17 MBOEPD, or 6%, compared to Q2
- Producing 162 thousand barrels per day (MBPD) of oil, an increase of 15 MBPD, or 10%, compared to the Q2
- Reducing production costs to $6.01 per barrel oil equivalent (BOE) compared to $6.19 per BOE in Q2
- Cash on hand of $2.1 billion