EOG plans to quicken its pace in the Eagle Ford shale play:
EOG Resources will ramp up its operated rig fleet to 12 at the end of 2010 and 14 in 2011 from five at present as it better understands the South Texas Eagle Ford shale from interpreting 3D seismic along the 120-mile oil trend in which it holds 505,000 net acres. EOG management said it is still early days in the play, but the Eagle Ford reservoir seems to be working on expansion drive toward 3-4% estimated ultimate recovery. Unresolved are determining optimum spacing, locating wells, areas that will be productive from Upper and Lower Eagle Ford or just one, and other issues. EOG plans to drill 245 gross Eagle Ford wells in 2011 compared with 111 this year. Even so, the formation will be a large contributor to oil production growth in the second half of 2010, as EOG has drilled and completed 31 wells and has 25 awaiting completion. Recent company Eagle Ford wells had initial production rates of 1,033, 1,002, and 625 b/d of oil plus rich gas, and the first wells in Wilson County came on at 707 b/d and 836 b/d. EOG has 100% interest in the wells.