Tuesday, October 3, 2017

EOG's Austin Chalk Core Focus Area

EOG's project strategy is starting to become apparent. With ~130,000 acres filed of record in the courthouse and an additional 70,000 possibly leased, the map is starting to tell a story.  They have acquired acreage on trend and east of here but it's not as contiguous.

The map below presents a general outline of EOG's largest contiguous block in yellow.  They have filed some tracts as 3D seismic permits (orange).  The dashed line outlining the 3D permits represents 238 square miles.  Based on the permits filed, I would assume that the 3D will be at least 150 square miles.  The Eagles Ranch 14H-1 falls within the estimated 3D outline.  3D seismic will be very useful due to the very complex geology.

Their geological theories are also becoming apparent. Their lease block consistently terminates on the west side bounded by a prominent salt ridge and three salt domes. Their northern boundary is clearly defined by the Edwards Shelf Edge.  The depth to reach the Austin Chalk increases more rapidly south of the shelf edge.  Formation pressure increases in a linear fashion also.  Their southern boundary is defined by depth of the formation.

Their theme appears to be high pressure, gas/oil mix, faulted, and porous.  My guess is that they will drill a few "pilot" wells in parallel with the 3D acquisition. This would give them some additional data on the formation and be prepared for a full scale development once the 3D is acquired, processed, and interpreted.  Stay tuned for an initial potential on the Eagles Ranch 14H-1.




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