EOG expects to drill in Argentina's Neuquen basin within weeks

EOG Resources Inc. expects to begin drilling at the Vaca Muerta oil shale in Argentina's Neuquen basin within weeks, EOG Chief Executive Officer Mark Papa said Nov. 30 during an investors presentation at Jefferies 2011 Global Energy Conference in Houston.

“We will start to drill the first well in a matter of weeks,” Papa said. “The shale looks pretty good to us.”

Although EOG has yet to drill a well, Papa said he is optimistic the Argentina shale play might prove to be as important to EOG as the Eagle Ford shale play in South Texas, which Papa calls EOG’s top asset.

EOG has 100,000 net acres in the Vaca Muerta. Papa said it’s too early yet for EOG to discuss any resource estimates about the play.

Repsol YPF SA has announced it identified the existence of a recoverable 927 million boe, 80% oil, in Late Jurassic-Early Cretaceous Vaca Muerta shale on about 3.5% of its 12,000 sq km holdings in the Neuquen basin in Argentina (OGJ Online, Nov. 8, 2011).

In the Eagle Ford shale, EOG has 535,000 net acres in what Papa calls the premier oil window. EOG also has 26,000 net acres in a wet gas window and 49,000 acres in a dry gas window in the Eagle Ford.

Papa said Eagle Ford well quality is improving with the initial production rate of some recent wells approaching 3,000 b/d of oil plus NGLs and gas. EOG is testing seven downspaced pilot patterns in the Eagle Ford.

Well costs are decreasing in the play for EOG, which expects to save more money after closing on a previously announced acquisition that will provide EOG with self-sourced sand for hydraulic fracturing.

“It will be mid 2012 before we get all take-away issues figured out,” Papa said of possible capacity constraints in the Eagle Ford.

EOG continues to exploit its expertise in horizontal shale technology in the US and Canada, Papa said.

“We’re looking for new horizontal oil plays in North America, and we don’t believe they’ve all been found yet,” he said.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

LOUISIANA HORIZONTAL WELL TAPS OIL IN AREA OF SALT RELATED FRACTURING

07/06/1992 James H. Skelton Independent Geologist Houston The successful drilling and completion of the world's deepest horizontal well in Louisiana confi...

New method of aerial and surface radiometric prospecting for oil, gas

09/20/1993 Mean Natural Radioelement Content of Sedimentary Rocks [34,614 bytes] A new petroleum exploration method has been developed using surface and aeria...

More operators eye Maverick shale gas, tar sand potential

08/13/2007 Gas potential in the overpressured Cretaceous Pearsall shale has drawn two of the world’s largest oil and gas companies to South Texas and th...

Eagle Ford viewed among top US shale gas plays

05/04/2009 Formation characteristics from two of its first five wells indicate that the Cretaceous Eagle Ford shale in LaSalle and McMullen counties of South ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected