EOG Resources - Eagle Ford Shale - Q1 2010 Conference Call Comments

EOG Resources (EOG) reported earnings for the first quarter of 2010, and held an earnings conference call to discuss the results. The company made comments on its activities in the Eagle Ford Shale in Texas. 

EOG Resources has completed its 17th well into the Eagle Ford Shale, and is slowing down its drilling program so that the company can analyze the seismic data that has been taken.

“Most of our wells today have targeted the lower Eagle Ford, which is a bit thicker, at least on our acreage than the upper Eagle Ford. But we do recognize that the upper Eagle Ford potentially may be a target, perhaps even a separate target, in terms of things. But you can pretty well mark that the vast the majority of our wells, so far, have been lower Eagle Ford completions.”

“In the Eagle Ford, we've completed our 17th oil well, the Harper #4H, which IP'd at 602 barrels of oil per day with 650 Mcf of gas per day. Not only we delineated our 120-mile Eagle Ford acreage, we're going to moderate our drilling activity for a few months until we have our 3D seismic shock and interpret it.”

“And then the concept of what we like to do in any of these plays is pick the sweetest part of a certain zone, for example in the Eagle Ford, there's probably a 20, 30-foot section that we consider the sweetest part of the Eagle Ford. And we want to keep the lateral in there for the whole length and that's pretty hard to do without 3D seismic. So our view is that once we get the 3D seismic shot interpreted, then we can go back and start a pretty intensive drilling program.”

Source: Seeking Alpha