Sunday, October 25, 2009

Bakken: EOG

For investors: archived.

EOG wells by cumulative production, by year.


Notes: EOG puts their wells on confidential status after they have been drilled or later, so runs prior to confidentiality can be found. I have not verified this, but it explains a lot. It appears that Oasis does something similar: one can find well files for Oasis wells before they have been completed.

NEWS

September 6, 2016: EOG buys privately-held Yates Petroleum; considered a steal. 

November 2, 2015: Mike Filloon's update on EOG

August 7, 2015: radial separation; 2Q15 transcript;

June 30, 2015: Mike Filloon's update on EOG.

June 12, 2015: huge sand fracks.

June 2, 2015: corporate outlook, Seeking Alpha

January 12, 2015: EOG, DVN, HES, COP -- all out-perform. -- Barrons.

December 8, 2014: Canada to divest most of its Canadian assets.

August 17, 2014: the new "400-series" EOG wells.

August 6, 2014: 2Q14 results.

June 9, 2014: EOG could increase earnings 32% this year; could increase production 29% but the production number, provided by the company, might be very, very conservative.

May 29, 2014: investor's conference, May 29, 2014, EOG's drilling years -- in the Permian, EOG has 40 years of drilling left -- 
Oil
  • Eagle Ford: 520 net wells in 2014, 12 drilling years left
  • Bakken/TF: 86 net wells in 2014; 8 drilling years left
  • Delaware Basin Leonard: 40 net wells in 2014; 40+ years of drilling left
  • DJ Basin: 39 net wells in 2014; 12 drilling years left
  • Powder River Basin: 34 net wells in 2014; 8 drilling years left
Combo
  • Delaware Basin Wolfcamp: 14 net wells in 2014; 75+ years left of drilling (not a typo)
  • Midland Basin Wolfcamp: 10 net wells in 2014; 50+ years of drilling left
March 11, 2014: EOG/Halliburton-Pinnacle doing microseismic studies on zipper fracks on the Wayzetta 44, 45, and 114. The purpose is to determine if fracking the two Bakken wells (44, 45) will result in the pressure blanket to maintain the Three Forks well frack (114). The answer will help decide whether to drill more Three Forks wells now or wait until the entire Bakken is fully developed.

February 26, 2014: data points from 4Q13 conference call.

February 24, 2014: EOG beats by 6 cents; stock surges; company announced 2-1 split

January 20, 2014: random update of the spectacular EOG wells in the Bakken. Which wells will hit 1 million bbls first?

December 21, 2013Forbes has almost the identical story that SeekingAlpha had on November 25, 2013, about EOG to be the largest producer in the lower 48 by 2018. 
  • Chevron: 475,000 bopd
  • XOM: 450,000 bopd
  • BP: 400,000 bopd
  • COP: 350,000 bopd
  • OXY: 300,000
  • EOG should hit 500,000 by 2018
December 20, 2013: from Argus Media --
The Bakken shale's crude cornucopia is familiar by now, but US independent EOG Resources is poised for a particularly strong run there owing to a “technical renaissance” from its assets in the legacy Parshall field.
Parshall has yielded a flurry of gushing wells for EOG this year as the older field undergoes a rejuvenation, reaffirming its place in North Dakota's competitive oil producing landscape beside the likes of oil-rich Williams and McKenzie counties.
Initial production rates at EOG Parshall wells have started out strong, not unusual in early production. But initial output from some of the company's wells have, for now, managed the usual course of an immediate 24- to 48-hour output plummet. One well steadily gushed 1,428 b/d over 3.5 months, topped by another that produced 1,714 b/d during the same period.
“We are very focused right now on the core [Parshall] area where we have 90,000 acres,” EOG chief executive Bill Thomas said last month. Thomas calls Parshall acreage “core” to EOG's Bakken position.
Stephan Nordeng, a geologist for the state of North Dakota, characterizes Parshall wells as falling in the top 10th percentile of all Bakken wells.
Parshall wells are “huge and they are good,” geologist Mike Johnson, who pioneered research in the greater Bakken reservoir, said. Johnson helped sell acreage to EOG as the independent built up its Parshall position in 2005.
“A lot of them pay out in six months,” he said. EOG generates 100pc rates of return from its Parshall/Bakken wells, Thomas added.
EOG ranked fourth among the Bakken's top producers with 11.5mn bl produced from January-July 2013, or about 54,292 b/d.
The independent is aggressively bringing to North Dakota lessons learned from its south Texas Eagle Ford assets as it moves to multistage drilling, applications with greater volumes of sand and longer laterals. Downspacing has helped boost its Bakken inventory to 12 years from seven.
“I would call the way they developed it conservative,” North Dakota geologist Julie LeFever said, noting the company has eased into multistage drilling over an eight-year period.
November 25, 2013: EOG is set to become largest oil producer in the lower 48 -- Michael Fitzsimmons over at SeekingAlpha. 
Not being satisfied with that distinction, President and CEO Bill Thomas has set the company's sights on being the largest oil producer in all of the US. Total oil production has grown at a 43% annual rate over the last three years with many wells achieving a 100%+ rate of return. New completion techniques should offset any potential weakness in WTI prices. As a result, the company's stock price should power higher. After doubling over the last 5 years, EOG should continue to deliver superior shareholder returns and could double again over the next 3 years.

At a recent BofA Global Energy conference presentation, I was surprised to hear Thomas claim EOG would soon be the largest oil producer in the continental United States.
November 17, 2013: an example of EOG ramping up in the Bakken (following their remarks in the 3Q13 quarterly earnings call

November 13, 2013: Richard Zeits -- million-bbl EOG wells may re-ignite the western Eagle Ford.

October 14, 2013: for investors, an article at SeekingAlpha.

October 11, 2013: Jim Cramer recommends, at SeekingAlpha.

October 9, 2013: Credit Suisse raises EOG share price target to $210. From the DNR message board:
Credit Suisse, put APC on focus list, $122 target, raised target on EOG to $210. Both had comments about the Delaware Basin acreage, APC has several hundred k acres. Suggests the Delaware Basin is the next big deal in e and p. 
October 5, 2013: EOG is cheaper than you think -- Motley Fool.

September 18, 2013: EOG presents at UBS Global Oil and Gas Conference

August 31, 2013: EOG requesting authorization for 604 wells in three cases, September, 2013, NDIC hearing dockets. 

August 11, 20132Q13 earning presentation.

July 22, 2013: the staggering EOG wells in Clarks Creek oil field

June 21, 2013: update on EOG's fracking technique -- Filloon.

June 19, 2013: Motley Fool with positive comments on EOG and Vaca Muerta in Argentina

March 25, 2013: EOG, ZaZa, and the Eaglebine.

March 18, 2013: the most promising energy stock. -- SeekingAlpha.

March 6, 2013: new completion design for EOG -- Mike Filloon.

January 17, 2013: Takeover talk. Papa retires soon. CVX might be interested. Statoil in the running.

November 29, 2012: Mike Filloon update, at SeekingAlpha.com.

October 18, 2012: EOG -- long-term holding; SeekingAlpha.com.

October 13, 2012: why Motley Fool likes EOG.

January 14, 2011: Finally, an outstanding EOG well; a long lateral in the Van Hook field -- #18365, 1,379, Liberty 8-01H.

December 25, 2010: now hitting on all cylinders.

August 6, 2010: Despite poor IPs in the Clear Water, EOG continues to work this field. It was granted two more permits in the Clear Water. The two wells will be placed on the same pad.

May 18, 2010, press release: EOG to acquire an LNG company in Canada.

April 24, 2010: Someone really likes EOG. I agree. Good call.

April 7, 2010: EOG's Bakken proven reserves up 5-fold in 2009 due to better technology. This is a huge story, folks.

February 17, 2010: Another big oil find for EOG? This time in Colorado.

February 1, 2010: I still don't have clear understanding of EOG's wells that have a series number "100" in them, such as "Parshall 100-22H."  Some have suggested the "100" means it is targeting the TFS. Others not so sure.

January 4, 2010: EOG starts sending oil to Oklahoma via rail; ahead of schedule.

December 18, 2009: EOG looking at three wells / pad (multiple wells per pad).

December 11, 2009: in one month (October, 2009), EOG produced more than one-half million barrels of oil from Mountrail County.

December 5, 2009: EOG aggressively exploring Clear Water field
Relatively inactive field, until recently
101 sections (compared to 163 sections in the Parshall field)
Of the 55 wells/permits, EOG has 48 wells/permits in this field (updated Feb 14, 2010)
Few producers reported so far; most mediocre; one 1,131 boepd IP
December 1, 2009: several news articles regarding EOG in the last couple of days
EOG will test train loading facilities in Stanley as early as December. 
EOG will increase number of rigs from 5 to 14 in 2010; will drill more than 120 wells.
November 25, 2009: EOG looking to drill 570 more wells in the Parshall oil field; asking permission to put three (3) horizontal wells (640-acre spacing) in each section (190 sections). Unless I'm missing something, this is absolutely incredible.

November 6, 2009: a nice thread from the Bakken Shale Discussion Group regarding EOG:
1. Core: 100,000 net acres in the Parshall oil field
2. Core: production -- about 700,000 bbls/section
3. Lite: 400,000 acres outside of the Parshall oil field
4. Bakken lite: production -- about 350,000 bbls/section
5. EOG-rail loading facility becomes operational in Feb, 2010
EOG's 3rd quarter, 2009, earnings transcript stated they estimated there was 9 million barrels of oil reserves in each section in their Bakken Core. If that's accurate, and if the 700,000 bbls recoverable as noted above is correct, EOG is expecting a recovery rate of about 7.8 percent, well up from the general estimate of 1 - 3 percent recoverable. If this holds, this has major implications for the original USGS assessment (2008). And remember, that USGS assessment only considered the Bakken-Three Forks Sanish formation, not the Logdgepole or the Birdbear and not with the new technology (horizontal drilling and multiple-stage fracturing).

[Note: some oil producers opine that the Bakken and the Three Forks Sanish are two separate formations in some parts of the Williston Basin; the state does not differentiate / distinguish between the two formations. All permits to this formation state "Bakken" even if the producer is targeting the TFS. Update: In the daily activity report dated January 19, 2010, I did see the NDIC break out the Sanish from the Bakken.]

November 5, 2009: EOG plans for 2010 -- a) increase production by 50% in the Williston Basin; and, b) have 14 rigs in North Dakota.

Original Post

Parshall oil field: EOG "owns" the most prolific oil field in "the Bakken": the Parshall oil field. The discovery of the Parshall oil field is credited to Michael Johnson, the 2009 AAPG Explorer of the Year.

Clear Water oil field: EOG is aggressively going into the Clear Water oil field, northeast of the Parshall. This oil field is a bit smaller than the Parshall (101 vs 162 sections, respectively). In T158-90W, EOG was granted the first permit (17676 -- section 6) in early 2008. It has been drilled and the IP was reported as 1,131 barrels/day, a very good well. In late 2009 and early 2010 we saw aggressive permitting in the Clear Water, with EOG essentially owning the Clear Water oil field, as much as EOG "owns" the Parshall. January 24, 2010.

I just looked at T158-90W again (February 21, 2010): in just the past few weeks, this section has gotten very, very busy. Almost every section now has a permit or a well being drilled. Two wells are producing; one with an IP of 1,131, and one with an IP of 626This looks like another incredible field for EOG. Right now there are five (5) rigs on site in this one township, and two wells are being completed (rigs have been moved off; probably being fracked or cleaned up.


EOG will nearly triple the number of rigs it has in the Bakken from 2009 to  2010. On March 14, 2010, EOG had 13 active rigs in North Dakota. [In December, 2013: 8 rigs.]

Number of EOG wells on the state's confidential list:
  • December 20, 2013: 36
  • October 11, 2013: 43
  • November 29, 2012: 28 
  • January 17, 2011: 66 
  • March 14, 2010: 39 
  • February 5, 2010: 54 
  • January 24, 2010: 60 
  • December 11, 2009: 83 
  • October 20, 2009: 79