Marathon Oil has increased its total resource estimate for the Eagle Ford from 469 million barrels initially to ~1 billion boe today.
The company will run 18 rigs throughout 2014 in the the Eagle Ford.
In addition, Marathon will pursue developing both the Austin Chalk and Eagle Ford in the area.
Development will look more like what we see operators doing in North Dakota where they target the Bakken and Three Forks from single pads.
Read more:Marathon Expects to Exit 2013 Producing 100,000 boe/d from the Eagle Ford
In areas prospective for both plays, two wells targeting the Austin Chalk and three wells targeting the Lower Eagle Ford will be drilled from a single pad. Further testing in the first half of 2014 will determine how widely this method of development can be applied.
“When you look at the three priorities for our 2014 business plan - accelerating our rig activity in three of the highest-value domestic resource plays, ......we believe they definitively reinforce our stated strategy of creating long-term shareholder value and a commitment to rigorous portfolio management integrated with robust capital allocation.”
Capital Budget Focused on Liquids Growth in North America
Marathon Oil will spend $5.9 billion in 2014, with approximately 60% ($3.6 billion) directed at developing liquids-rich assets in North America.
A total of $2.3 billion will be spent in the Eagle Ford to drill 385-405 gross (250-260 net) wells. Almost 90% of the company's activity is operated. $225 million, which is included in the $2.3 billion, will be spent on pipelines and centralized production tanks (batteries).
[ic-l]Marathon will spend just over $1 billion in the Bakken and more than than $200 million in the Oklahoma Woodford. Combined with the Eagle Ford, the plays account for almost all of Marathon's North American resource play investment in 2014.
Production from the company's three core resource plays will surpass 175,000 boe/d in 2014, with the Eagle Ford contributing approximately 120,000 boe/d
Read the full press release at marathonoil.com