Recently the Texas Railroad Commission released the first full month’s production volumes for a horizontal Barnett Shale well that is setting the bar pretty high for horizontal oil wells in the play. That well is EOG’s Settle B #1H and reported April 2010 production volumes of 40,607 barrels of oil and 75.5 MMcf of gas (daily averages of 1,354 Bbls/d and 2.5 MMcf/d). This is not the first time we have heard about this well, EOG has been talking about it since earlier this year and in their first quarter conference call Mark Papa stated that it IPed at 1,852 Bo/d with 3.7 MMcf/d of liquid rich gas. This initial horizontal result helped EOG with the decision to re-evaluate the easternmost part of their “Barnett Combo” area and change the previously designated vertical oil drilling area to horizontal oil drilling.
The following map is from EOG’s Investor Presentation for the second quarter 2010 and it outlines the Company’s core Barnett Combo area and the area that was shifted from vertical to horizontal drilling based on initial results.
There are also a good number of EOG offsets around the Settle B #1H, as seen in the following map, with first production dates ranging from July 2006 to July 2010 with the Richardson #3H.
EOG’s horizontal Barnett Combo drilling program in its infancy in this area and it will be interesting to see if they can reproduce the type of results that the Settle B #1H are initially showing moving forward.
To learn more visit the EOG Barnett Folder in the Unconventional Updates in DI’s DNA.
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