EOG Resources (EOG) reported earnings for the fourth quarter of 2009, and held a conference call on February 10, 2010, to discuss the results. The company reported three successful completions in the Sanish Three Forks formation, which is located just below the Bakken Shale on its 500,000 net acres.
“Three Forks Formation where we have achieved positive results from three wells. The Van Hook 100-15H IPed at 1390 barrels of oil per day. The Austin 101-15H well has 510 barrels of oil per day and the Burke 100-20H well at 430 barrels of oil per day.”
“These are the first tests of the Three Forks Formation on our 500,000 net acres and we can conclude that the Three Forks is productive over some portion of our acreage and that the average Three Forks well yields similar reserves to our Bakken light wells which is about 240,000 barrels of oil equivalent net after royalty and generates a 35% after tax reinvestment rate of return at current prices.”
“We successfully drilled a Bakken step-out in Williams County, North Dakota, 90 miles west of our Parshall field. The Round Prairie 1-17H, where we have a 95% working interest is producing at a stabilized rate of 450 barrels of oil per day and likely has similar reserves to our other Bakken light wells.”
“Results from our first longer lateral well the James Hill 01-31H. To-date all of our wells have been moderate length laterals, aka 640s. The James Hill well has one and half times a reserve of a Bakken Lite well which is proportional to its increased lateral length. We're valuating the efficacy of drilling longer laterals both 960s and 1280s compared to our 640s and haven’t yet decided which is more efficient.”
“Our net production right now is about 26,000 or so but 26,000 net after royalty. That’s EOG and I don’t have an estimate as to where we're going to exit the year in the Bakken.”
Source: Seeking Alpha