EOG Resources improves Eagle Ford completions

Oct. 16, 2014
EOG Resources Inc. said completion design advances in the Eagle Ford shale contributed to several noteworthy well results in the second quarter.

Rachael Seeley, Editor

EOG Resources Inc. said completion design advances in the Eagle Ford shale contributed to several noteworthy well results in the second quarter.

"We are drilling longer laterals with a 50% increase in the number of stages from where we were 3 years ago. We're also seeing productivity improvements during early flow-back, but we need more time to evaluate the results," Bill Thomas, chief executive officer of EOG, told an analyst presentation.

During the period, the company brought online two wells with production rates above 5,000 b/d. In Karnes County, Tex., the McCoy Unit No. 1H came online flowing 5,290 b/d of oil, 475 b/d of NGL, and 2.7 MMcfd of gas, while the McCoy Unit No. 2H flowed 5,415 b/d of oil, 415 b/d of NGL, and 2.4 MMcfd of gas.

The company also reported three wells in the Justiss Unit in nearby DeWitt County, Tex., had initial production rates ranging from 3,900-4,130 b/d of oil, 650-750 b/d of NGL, and 3.8-4.3 MMcfd of gas.

"We're constantly experimenting with the completion designs and are seeing improved production responses from these tweaks," Thomas said. In Gonzales County, Tex., Thomas said, 21 of the 29 wells drilled during the period had initial production rates exceeding 2,500 b/d of oil.

EOG Resources expects to utilize 26 rigs to drill about 520 net wells in the Eagle Ford shale this year. EOG is the largest acreage holder in the Eagle Ford shale, with 632,000 net acres of leasehold. Photo by Rachael Seeley, UOGR

EOG is the largest acreage holder in the Eagle Ford shale, with 632,000 net acres of leasehold. Net Eagle Ford production averaged 253,000 boe/d in the second quarter and reflected a 46% increase in crude output from the year-earlier period.

For the full year, the company expects to utilize 26 rigs to drill about 520 net wells in the shale formation. Well costs are expected to average $5.7 million.

During the second quarter, Thomas said, the company drilled a number of single wells to ensure leasehold was held by production, primarily in the western portion of its Eagle Ford acreage. Now that most of these so-called retention wells are completed, Thomas said, the company expects to perform considerably more pad drilling in the second half of the year-rendering its operations more efficient and reducing costs.

EOG has been working to increase the proportion of liquids in its production portfolio in recent years and, in the second quarter, the Eagle Ford shale contributed to an overall rise in EOG's total US liquids production. Relative to the year-earlier period, US crude and condensate production increased 33% to 274,600 b/d, NGL production rose 22% to 78,500 b/d, and gas production held steady at 925 MMcfd.