- EOG Resources Eagle Ford core pads are some of the best unconventional producers in US history
- EOG's well design continues to outperform most operators, with much better results expected from high density frac jobs
- The Eagle Ford, Bakken and Delaware all produce ATRORs above 35% at $50 oil
- Its strong balance sheet provides opportunities to add to core acreage in around its current leasehold
- EOG's Core Permian (Delaware) acreage has three very good producing intervals
In an earlier post about Statoil's CFO's comment that the price of oil would not recover until 2018. This update on EOG by Mike Filloon provides background to my thesis that the concept or definition of "recover" when it comes to the price of oil is unhelpful. It's not irrelevant, but it's not helpful.
When it came to Mike Filloon's comments, the only thing I was interested in was the EURs in the Bakken.
From the linked article, just this very tiny bit (the article is very, very long; I can't wait to read the comments from the naysayers):
Its Bakken Core and Antelope Extension are both excellent areas. There are economic issues for its other prospects. The Bakken Lite, State Line and Elm Coulee are not as good, and are probably not economic at today's prices.
Well costs have come down considerably to $7.1 MM CWC. EOG's target of $6.5 MM, makes this play favorable.
Its Parshall field leasehold is quite large, and has produced a large number of top ND producers. It added the Antelope Extension later. This is unique as NE McKenzie County's Three Forks intervals are much better than other ND areas. A higher pressured Three Forks coupled with very good middle Bakken wells, makes this a very good area for large pads.
Core EURs are 745 MBoe to 610 MBoe, with 70% from oil. Its high-density completions or Mega-fracs probably produce much higher numbers. EOG has decreased the number of wells it will drill and complete in 2015 to 25 net. This compares to 59 net in 2014.
CWC is down 19%. Although pad drilling and zipper frac completions have decreased costs, there are still issues with higher taxes and differentials. The Bakken has become less favorable than the Texas plays, but is still better than most others.
EOG recently completed its first high-density well in the Antelope Extension. Riverview 102-32H is still in confidential status. EOG has completed several wells in the area.I track the EOG Riverview wells in the Antelope oil field here and also here. I suppose I should separate the two better but it would take a lot of time. Maybe later.