EOG Eagle Ford Well Production Rates Soar - Will Drill More in 2013

EOG Eagle Ford Shale Acreage Map
EOG Eagle Ford Shale Acreage Map

EOG Resources announced impressive results from the first quarter. The company's Eagle Ford wells just keep getting bigger.

A total of 18 wells produced more than 2,500 b/d of oil and nine more wells produced more than 3,500 b/d of oil. That's 27 wells that came online at rates greater than 2,500 b/d!

Stellar well performance has led to an increase in planned development in 2013. EOG now plans to drill 425 net wells compared to 400 planned previously.

Results from the Eagle Ford helped fuel company-wide crude oil production growth of 33% year-over-year.

"Our first quarter results clearly demonstrate EOG's ability to consistently execute a highly efficient crude oil drilling program while simultaneously trimming costs and continually making better wells," Papa said. "To further fuel EOG's momentum, we are channeling as much capital as possible into our high rate-of-return oil plays this year."

EOG is entering what it deems a period of "manufacturing-type" development that will drive down costs, while pursuing the most effective completions. Current development is planned at 40-65 acre well spacing. The company plans to add even more wells in 2014 if oil prices hold at current levels or better.

Based on confidence in its current asset base and multi-year inventory of drilling locations, EOG is targeting sustained peer-group leading high growth rates of crude oil production for the 2013-2017 period, provided WTI prices remain at or above the mid-$80 level.

Notable EOG Wells In Gonzales County


  • Guadalupe Unit #01H, #02H, #03H, #04H, #09H, #10H, #11H and #12H had initial rates ranging from 2,175 to 4,490 Bopd with 265 to 630 barrels per day (Bpd) of natural gas liquids (NGLs) and 1.5 to 3.6 million cubic feet per day (MMcfd) of natural gas
  • The Lepori Unit #1H, #2H and #3H, which flowed at initial production rates of 3,490, 3,900 and 3,880 Bopd with 530, 585 and 590 Bpd of NGLs and 3.0, 3.4 and 3.4 MMcfd of natural gas, respectively
  • The Lefevre Unit #1H and #2H had initial crude oil production rates of 3,195 and 3,180 Bopd with 425 and 525 Bpd of NGLs and 2.4 and 3.0 MMcfd of natural gas, respectively
  • The Otto Unit #4H, #5H and #6H were completed to sales at 3,915, 3,125 and 3,485 Bopd with 570, 485 and 555 Bpd of NGLs and 3.3, 2.8 and 3.2 MMcfd of natural gas, respectively.

Notable EOG Wells In Karnes County

  • The Wolf Unit #1H and #2H, in which EOG has 100 percent working interest, began sales at 5,380 and 4,475 Bopd with 400 and 500 Bpd of NGLs and 2.3 and 2.9 MMcfd of natural gas, respectively
  • The Lazy Oak Unit #4H and #5H went to initial production at 2,025 and 2,680 Bopd with 170 and 240 Bpd of NGLs and 1.0 and 1.4 MMcfd of natural gas, respectively
  • The Korth Unit #1H and #2H, which were completed to sales in January at 3,980 and 3,580 Bopd with 415 and 450 Bpd of NGLs and 2.4 and 2.6 MMcfd of natural gas, respectively.


Halcon Plans Eagle Ford Development in Brazos County, TX

Halcon Eagle Ford Activity Map
Halcon Eagle Ford Activity Map

Halcon is extending the Eagle Ford north into Brazos and Robertson counties in what the company has deemed the "El Halcon" prospect.

The company unveiled a 50,000 net acre position with plans to expand to 150,000 net acres in and around northern Brazos County.Early well results looking promising. The first two wells produced 859 boe/d and 694 boe/d, respectively. Both wells had a production stream that was 94% oil.

The first few wells have effective lateral lengths of 5,632 ft and were completed with 28 frac stages. Halcon estimates each well will recover 350,000-400,000 boe at a cost of $7-8 million.

This management team knows a thing or two about the Eagle Ford Shale, and we intend to utilize our extensive knowledge of the formation to exploit this new opportunity to create shareholder value.
— Floyd C. Wilson, CEO

Halcon's plans in the area are to run 1-3 rigs, with capital spending estimated at $100 million in 2013.

Woodbine Area Targeted And More Being Evaluated

Halcon Resources Eaglebine Map
Halcon Resources Eaglebine Map

Halcon also announced the company plans to focus its Woodbine efforts around 220,000 acres in Leon, Madison, Grimes, and Polk counties. The company has confidence in the limits of the Halliday Field and will begin to focus on operational efficiencies.

The results of a 3D seismic survey in Madison, Grimes, and Walker counties should be processed by the end of 2013. The data will allow the company to plan exploration in this less proven area.

Read more in the press release at halconresources.com

How Long Will the Eagle Ford Shale Boom Last?

Eagle Ford Shale Impact Map
Eagle Ford Shale Impact Map

A Texas A&M economist met with business leaders to share his projections of how long the Eagle Ford shale boom will last. He expects the play will have a productive lifespan of 16 years. I'd like to see what is behind the 16 year number, but I believe the message was well delivered. This Eagle Ford development isn't going to fizzle out any time in the near future. The opportunity is too big. Billions of barrels of oil & gas resources mean billions and possibly trillions of dollars in economic development.

The economist speaking at the 2013 Executive Economic Outlook breakfast was simply conveying there is significant opportunity in South Texas. Most real estate developers are being cautious and not making commitments unless they can project a one-year payout. If the play has a lifespan of decades, more permanent developments are needed. South Texas will need every thing from grocery stores to home developments, gas stations and Wal-Marts.

Eagle Ford Shale's Lifespan

[ic-r]The Eagle Ford is still relatively young, so everyone is wondering if the play will go bust. The answer to that question lies in the future oil price. As long as oil prices hold steady at a level of more than $70, South Texans don't have much to worry about. The Eagle Ford returns more to operators than almost all plays in the country. Even if oil prices drop, it will still have the same relative position as the investment of choice in North America.

An old industry addage is "The easiest place to find hydrocarbons is where you've already found them". That will likely prove true in South Texas. We're actually seeing it play out today. Operators have new development plans in several other oil & gas plays including the Austin Chalk, Buda, Escondido, Olmos, and Pearsall Shale formations.

I wouldn't say never, but I'd place the probability of a bust in South Texas lower than anywhere else in the country.