Archived.
Summary:
- EOG continues to see excellent results in Wyoming, with several big producers leading the way
- Arbalest 66 has produced 464,400 BO in the first 26 months of well life
- well costs are very low at $5.3 million for a 9,500-foot lateral when focusing on the Turner formation
- we think the play has significant upside given the good results and multiple intervals to de-risk
EOG's current Turner well costs are $5.3 million for a 9,500-foot lateral.
WTI pricing is $70/bbl. The average EOG location in the PRB produces 133 KBO and 471 MMcf in the first year.
After reducing WTI for NRI (20%), differentials ($5) and cash costs ($10/bbl), oil revenues are $5.4 million.
This estimate does not include NGLs or natural gas.
Payback is reached in 10-11 months on average. EOG is showing how productive the PRB can be, and it is likely the play is highly undervalued. We think oil prices are headed higher, and that will make the play more attractive. Not only has it done well in Wyoming, we have addressed its success in the Permian and Super Hogs across other US plays.A Conway Twitty sort of night.
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