By OGJ editors
HOUSTON, Apr. 8 -- EOG Resources Inc. has accumulated acreage across six counties in the Eagle Ford play of South Texas where the Houston independent has drilled 16 delineation wells over a 120-mile trend.
Mark G. Papa, EOG chairman and chief executive officer, said, “We believe the South Texas Eagle Ford horizontal crude oil play will prove to be one of the most significant United States oil discoveries in the past 40 years."
Although it’s too early for official reserve estimates, EOG forecast its Eagle Ford recovery potential at 900 MMboe of crude oil, net after royalty, based on initial drilling and early production results on a 505,000 net-acre position.
Development of this oil play is under way. EOG also has some acreage in what is known as the wet gas and dry gas areas of Eagle Ford.
The company said its production growth over 3 years will be driven primarily by increases in crude oil, condensate, and natural gas liquids. EOG reaffirmed its plans to switch its focus from gas to crude oil and condensates.
In 2010, 50% of EOG’s revenue is expected to come from liquids, and executives forecast that liquids will account for 65% of company revenue by yearend 2012.
EOG announced plans to divest $1-1.5 billion of US and Canadian noncore gas properties during late 2010 or early 2011. These asset sales will assist EOG in funding the 2010 and 2011 capital expenditure programs while maintaining a low debt-to-total capitalization ratio, Papa said.