|EOG Resources - Bayou Twisty Field - Unit application (Source: LA Office of Conservation)|
|Regional structure: Base of TMS; EOG lease areas (red); Higher TMS resistivities (blue dash)|
It's great to see EOG in the play. Their Eagle Ford experience will bring a lot to the play. The "pilot fish" have already landed in Avoyelles and Rapides leasing alongside this prominent shale player.
Several leases have been amended with the name of EOG's Japanese joint venture partner. I would expect an announcement soon from the company. It is rumored that their targeting an additional 100,000 acres to their current ~120,000 acres.
EOG recently released an update of the Eagle Ford operations with some very impressive metrics:
2011 marked a significant year in the development of EOG's single largest asset, the South Texas Eagle Ford. Production at year-end was 66 thousand barrels of oil equivalent per day, net, 78 percent of which was crude oil.
Starting 2011 with a 12-rig drilling program that ramped up to 26 rigs in December, EOG drilled and completed 244 net wells during the year with a focus on optimizing completion techniques, in addition to reducing drilling days and overall well costs. Moving into development mode early in 2011, EOG began shifting its attention to increasing recovery of the oil-in-place in the field. To test the impact of well spacing on reserve recoveries, EOG drilled eight pilot programs that included 33 total wells. Based on production analysis from these pilots and reservoir modeling, EOG is now pursuing development drilling on 65 to 90-acre spacing, significantly tighter than the original density of 130 acres between wells.
After taking into account both the excellent results from the 375 wells it has drilled to date across its 120-mile acreage position and the results from the down-spaced drilling tests, EOG has increased its estimated potential reserves in the Eagle Ford from 900 million barrels of oil equivalent (MMboe) to 1,600 MMboe, net after royalty (NAR). The 700 MMBoe, NAR, or 78 percent increase represents an estimated 6 percent recovery factor. On its 572,000 net acres in the prolific oil window, EOG has identified approximately 3,200 remaining drilling locations and increased its average per well estimate to 450 thousand barrels of oil equivalent (MBoe), NAR.
EOG's well results in the Eagle Ford continue to lead the industry. In
"With tremendous resource potential still remaining on our acreage, we continue to test and apply techniques that will increase the oil recovery and potential of the Eagle Ford, our crown jewel. This strategy takes us into the next inning of development. By concentrating our efforts on getting more oil out of the ground early in the development phase, we are taking a good asset and making it great," Papa said. "Looking across the industry, we believe EOG's Eagle Ford position represents the largest domestic net oil discovery in 40 years and the highest rate of return play in
Entire press release: