More Bad News For Saudi -- EOG's Monster Wells In The Permian -- Filloon -- June 11, 2017

Link here at SeekingAlpha:

Summary 

• EOG continues to outperform competitor's initial production rates, and this is seen in the Permian Basin
• EOG's improvements continue as it shows other operators how to squeeze more oil per foot from the Delaware
• EOG's results should be looked at as a futuristic indicator, as history has shown other operators will mimic design and also improve as it copies new well designs
• Northern Loving and southern Lea counties look to be a new US core, as $50 or even $40 oil provide excellent economics

The lede:

• Our overview of northern Loving and southern Lea counties has provided some clarity as to results in the Delaware Basin core. This could be the best area in the US, and there is still a significant inventory of locations to drill and complete. Results like these have provided oil bears with leverage of a lower for longer narrative. $50 WTI seems to provide exceptional economics here. It is likely results will get better, as shown by the most recent EOG wells. 

Other data points:

• Many of these wells model to over 700 MBOE over 12 months. 
• A large number of these locations have already produced over 500 MBO or model to it on a 12-month basis. 
• The worst producing well could produce 200 MBO in 12 months. 
• EOG had initially started focusing on better fracs close to the well bore. 
• We also saw other operators mimic this type of design. 
• Competitors moved from sliding sleeves to plug and perf. 
• Plug and perf not only improved EOG's results, but other operators as well. 

It looks like these are $8+ million wells.