One of the most notable positive surprises during this earnings season in the Exploration and Production sector was the announcement by EOG Resources of uncharacteristically strong well results in the western portion of the Eagle Ford Shale play.
Very high oil productivity of certain areas in the eastern portion of the Eagle Ford has been widely publicized and confirmed by many "monster" well results, with some of the IPs exceeding 5,000 barrels of oil per day, plus significant amounts of associated liquids-rich gas. Those wells have largely defined the play's "core of the core" as a narrow band along the volatile oil and condensate windows, mostly in Gonzales and Karnes Counties (picture below). The western half of the play on the other hand, has lagged substantially in terms of well results, challenging operators to make competitive returns on their projects. Royal Dutch Shell, for example, has recently made a decision to divest its enviable 100,000+ net acre block in western Eagle Ford after drilling over a hundred wells with somewhat disappointing results.But now EOG is reporting staggering results in the western portion. See more at the link.
A Note To The Granddaughters
Earlier this morning I posted a noted about safety issues of a nuclear reactor from Freeman Dyson's Disturbing the Universe.
Now this little bit of trivia from the same book p. 99:
There were many practical difficulties to be overcome before these [safety] ideas could be embodied in functining hardward. The greatest contribution to overcoming the practical difficulties was made by Massoud Simnad, an Iranian metallurgist who discovered how to make fuel rods containing high concentrations of hydrogen. He made the rods out of an alloy of uranium hydride with zirconium hydride. He found the right proportins of these ingredients to mix together and the right way to cook them. When the fuel rods emerged from Massoud's oven, they looked like black, hard, shiny metal, as tough and as corrosion-rssistant as good stainless steel.So, the Iranians have a long history of working with nuclear reactors. Fascinating.