By OGJ editors
HOUSTON, Nov. 1 -- ConocoPhillips plans to sharply hike capital spending in the Southeast Texas Eagle Ford shale play in 2011.
The investment level, although not yet approved, likely will be $1-1.5 billion in 2011 compared with $300 million in 2010, management said last week. The 2011 amount is for drilling and completions, not to add acreage.
The company holds more than 240,000 net acres southeast of San Antonio in Live Oak, Bee, Karnes, DeWitt, and Gonzales counties and expects to be running 10 rigs by the end of 2010.
Results from wells drilled so far are very encouraging, with 30-day averages of around 1,500 b/d of oil equivalent at a cost of $8-9 million/well.
The company expects its activity to pick up in the fourth quarter from the nine rigs now running. It drilled 15 wells and completed eight in the quarter ended Sept. 30.
ConocoPhillips intends for the Eagle Ford play to contribute 65,000 boe/d of net production in the long term. Meanwhile, the company plans to boost its North Dakota Bakken rig count to more than eight rigs in 2011, and it also has a position in the North Barnett shale play in Texas.