EOG has moved this design to the Bakken. As a result, it is reporting triple digit rates of return on its new wells. EOG already has one very successful Parshall Field well. This well models in the top ten. This is more impressive given it was in a developed location and should produce 10% less than a single well. EOG is using between 1,500 and 2,400 pounds of sand per foot. This compares to just 300 pounds by current Bakken operators. It is important to note that it isn't just the initial production that is affected, but we are seeing the depletion curve flatten. This technique not only opens up more surface area of the source rock, it keeps these open. In part two, I will show how EOG is using this completion style to garner returns as good as in the Eagle Ford.Part II, today:
In part one of this article, I compiled data on EOG's well design in the Eagle Ford. The reason was to show its outperformance with respect to the competition. I assert that EOG's results have just as much to do with well design as geology. The acreage in Gonzales County could be the best in the United States. The difference in results from one operator to the next does prove EOG is doing a better job drilling and completing. Its frac design is the most important. EOG now concentrates on stimulating the source rock close to the well bore, as opposed to long fractures. This is producing very strong IP rates while using a very tight choke. It has began using this in the Bakken with great success.
EOG's proclamation that its Bakken/Three Forks wells now have a comparable rate of return with the Eagle Ford further supports its completion technology as the reason for higher production/foot. Some say EOG has outperformed the competition for years, which would be true.
The difference is its recent change in using more than twice the proppant. I also believe its acreage in northeast McKenzie County is better than the Parshall Field.It helps that EOG has its own sand pits in Minnesota/Michigan/Wisconsin area. And, of course, Warren loves this just as much as EOG does.
For more on sand, click here.
Last year, thhe MDW noted that northeast McKenzie County was going to be huge. Not only could it be better/acre than the Parshall, it will encompass a larger area.
Elsewhere an enquiring mind was asking where the sweet spots in the Bakken were. I don't think he/she was asking for a technical definition; this post should be a help: three sweet spots in the Bakken: the Parshall oil field; the Sanish oil field; and, northeast McKenzie County.