EOG's Burrow Unit 5H Well Better Than First Reported

EOG Eagle Ford Oil Well Record Production
EOG Eagle Ford Oil Well Record Production

We published details from the Texas RRC completion report related to EOG's record Eagle Ford well, but the company's second quarter operations update proved the well was better than first reported.

EOG reported the well came online at more than 9,200 boe/d. That compares favorably to the 8,600 boe/d that was reported to the commission. Better yet, the well was still producing more than 4,200 barrels of oil per day after 30 days. The well is easily the best in the Eagle Ford to date.

The well easily produced more than 150,000 barrels of oil in its first month online!

Eagle Ford Growth Leads To Company-wide Increase In Guidance

As a result of performance in the company's liquids plays (i.e. Bakken & Eagle Ford), EOG is increasing annual crude oil production guidance from 28% to 35%.

We have the confidence to raise the bar on EOG’s performance expectations because our outstanding assets perform better and better, quarter after quarter,” said CEO William R. “Bill” Thomas. “EOG expects to achieve these higher goals within our previously stated capex estimate.

t the end of the second quarter, EOG was producing 173,000 boe/d from the Eagle Ford and had more than doubled initial production rates across much of the play.

The company highlighted several wells across La Salle, McMullen, and Gonzales counties that produced ~1,500 barrels of oil per day or more. The record Burrow 5H well was part of a unit that had two other wells come online at ~3,000 b/d of oil. It's easy to see why the company is increasing its production guidance.

With wells in our western drilling program following the same trend as those in the east, results from the EOG’s Eagle Ford activity continue to outpace our expectations.
— Papa

Is a Eureka Energy Bidding War Close?

Eureka Energy's board is rejected an offer from Aurora Oil & Gas, but could be near an agreement with Lonestar Resources. Details of a potential agreement will not be known until Eureka's board meets over the weekend. Aurora's offer is only good until June 15 and Australian regulations prevent the company from making a higher offer until after that date. Lonestar Resources is a private Fort Worth based company with interests in the Bakken, Barnett, and Eagle Ford shales.

Read more on the potential offer at wsj.com

Rosetta Budgets $590 Million for South Texas - 2012

Rosetta Resources plans to spend over 90% of its 2012 budget in the South Texas Eagle Ford. Of the $640 million the company plans to spend, $590 million will be spent to run four rigs with a target of drilling 60+ wells. The company has committed to and will have pipeline capacity of 263 mmcfe/d by mid-year 2012. Those are impressive numbers Eagle Ford plans from Rosetta. Rosetta also announced it would complete its exploration program in the Alberta Basin Bakken of Montana, but has not further development plans at this time. That's not a real surprise. We haven't been high on the Alberta Bakken. It's simply too remote and costly to develop. The 300,000 plus acres the company holds in the area will become a nice option on oil prices. 

Rosetta's 2012 capital program includes a four-rig program in the Eagle Ford shale and the completion of 60 new wells, located both in the Gates Ranch area as well as new sections in the liquids window of the play. During 2011, Rosetta completed 45 wells in the Eagle Ford area. The Company's total exit rate for the year is expected to be approximately 195 million cubic feet equivalent per day ("MMcfe/d"). In January 2012, Eagle Ford firm gross wet gas capacity of 160 million cubic feet per day ("MMcf/d") will become available allowing Rosetta to move 216 MMcfe/d of net Eagle Ford volumes on a firm basis. By mid-year 2012, the Company's net Eagle Ford firm capacity will increase to 263 MMcfe/d.