EOG Resources (EOG) held a conference call on November 2, 2010, to discuss earnings for the third quarter of 2010, and discussed the company’s activities in the Barnett Shale in Texas.
“Our Barnett Combo results continue to be consistent, and we're in a steady manufacturing mode. For the second quarter in a row, we've expanded the Core area from 150,000 to 160,000 acres. This play keeps getting bigger. Earlier this year, we highlighted our first very good horizontal well in the Eastern portion of our acreage, where we'd previously recorded only verticals. Since then, we've completed many successful Eastern area wells in horizontals and verticals.”
“Recent successful horizontals are Strickland A #2H, Settle C #3H and the Christian C #3H, with IP rates of 1,118, 731 and 954 barrels of oil per day. It's 1.6 million to 2.1 million cubic feet a day of rich gas. EOG has working interest varying from 90% to 98% in these wells.”
“Two successful vertical wells in the East are the Strickland #1 and Slagle #1, which IP-ed at 865 and 539 barrels of oil per day. We have 96% and 100% working interest in these wells, respectively.”
“We've also achieved good results in the Western portion of Montague County, with a Posey C#3H testing at 536 barrels of oil per day. We're currently operating 16 rigs in the Combo and plan to run 16 rigs here in 2011.”
“One other interesting feature here, although the Combo increased about 1/3 oil, 1/3 NGLs and 1/3 residue gas, the current revenue split is over 90% liquids and less than 10% gas, consistent with our liquids shift. We plan to drill 258 Barnett Combo wells in 2011.”
“On our Barnett gas activity, essentially all of our Johnson County acreage is now held by production, till we plan to drill zero Barnett gas wells in 2011.”
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