People who know me understand a few things about me: a) I love the Dallas Cowboys, b) I only use Kingsford charcoals, c) I am fascinated with the EOG Eagle Ford program. Being that this is an unconventional reservoir blog, I will restrict myself to a discussion of the EOG Eagle Ford Program and will save the other discussions for another time.
First, I’ll set the stage with a snapshot of the EOG Eagle Ford program below. I do not believe the producing wells are being pulled nearly as hard as they will be in the future, even though they will be produced on a restricted choke.
I have written many times about EOG in the Eagle Ford oil window so I will keep this post short and sweet with some of my notes from the 3Q2010 conference call.
– Of the 140 permitted well locations spread across well over 100 miles and 5 counties of the Eagle Ford, 77 have been drilled, 59 are shut-in or waiting on completion
– The reservoir pressure is 7200 psi, the bubble point pressure is 2500 psi
– The west block of the acreage is currently targeting the lower Eagle Ford with about 6,000′ laterals, 140 acre spacing
– The east block wells are 100% WI and are being drilled with 4,000′ laterals currently. The Cusack-Clampitt lease to the very east are being drilled with accordian laterals testing the upper and lower Eagle Ford, 125-acre spacing
– EOG has 900 million bbls of reserves under this acreage
– EOG will run 14 rigs in 2011 as they exit the “science” stage of their program, they will drill 231 net wells.
EOG had to lower production guidance in the Eagle Ford because of the shortage of frac crews and difficulty in getting them out to their wells. Costs are going up 40%+ and EOG does not see any true relief occuring until at least Mid-2011. I believe the EOG Eagle Ford oil program will be a benchmark for how well shale oil can be produced with current technologies. They have hedged their Eagle Ford bets in the oil window and we will be keeping tabs on the production as it comes into our database.
In the meantime, visit our Unconventional Updates for information on all things unconventional.
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