By November 10, 2015 Read More →

EOG Resources increases Delaware Basin potential by 1 billion barrels

Eagle Ford continues to be EOG Resource’s largest high return play

EOG Resources

EOG Resources, Inc. has reported a third quarter 2015 net loss of $4.1 billion, or $7.47 per share. This compares to third quarter 2014 net income of $1.1 billion, or $2.01 per share.

During the third quarter 2015, proved oil and gas properties and related assets were written down to their fair value resulting in non-cash impairment charges of $4.1 billion net of tax.

The impairments were due to declines in commodity prices and were primarily related to legacy natural gas and marginal liquids assets.

Operational Highlights

In the third quarter 2015, total crude oil and condensate production exceeded prior guidance due to improved well productivity.  Total company production decreased 5 percent compared to the third quarter 2014 excluding production related to EOG’s Canadian operations, which were divested in the fourth quarter 2014.  Total capital expenditures decreased 36 percent compared to the same prior year period.

EOG also continued to reduce completed well costs and operating costs compared to the same quarter last year.  Lease and well expenses decreased 17 percent on a per-unit basis due to improved operational efficiencies and reduced service costs.  Per-unit transportation costs decreased 11 percent, and total general and administrative expenses declined 6 percent.

“We are executing on our 2015 plan to reset the company to be successful in a low commodity price environment,” said William R. “Bill” Thomas, Chairman and Chief Executive Officer.

“By continuing to make the best oil wells in the industry, significantly reducing costs and expanding resource potential in the best North American oil plays, EOG is uniquely positioned for 2016 and to lead the industry for years to come.”

Delaware Basin
EOG increased its Delaware Basin net resource potential by 1.0 billion barrels of oil equivalent (BnBoe).  For the Delaware Basin Wolfcamp, EOG added 950 net drilling locations and increased its net resource potential estimate over 60 percent to 1.3 BnBoe.

“Outstanding technical and operational advances enabled us to increase potential resource estimates for our Delaware Basin position by over 70 percent,” Thomas said.

EOG Resources

An operation in the Eagle Ford shale play in south Texas.

South Texas Eagle Ford
The Eagle Ford continues to be EOG’s largest high return play.  During 2015, the company expanded the use of high density completions to 95 percent of the Eagle Ford wells planned for the year.

Enabled by high density completions and proprietary targeting technology, EOG is actively testing tighter well spacing in the lower Eagle Ford with stacked-staggered “W” patterns.

North Dakota Bakken
EOG’s activity in North Dakota remains focused on the Bakken Core and Antelope Extension areas.

The company continued to improve its drilling and completion techniques including the expanded use of high density completions.  In addition, recently installed water gathering facilities have significantly reduced operating expenses.

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