Tuesday, February 25, 2014

EOG Reports Eagle Ford Drilling Results: More Liquids, Less Gas

EOG reported Q4 2013 results yesterday, and provided details of their Eagle Ford drilling program.  Here is a summary of the well results they reported.  These are initial production rates only, so the oil:gas ratios may vary significantly over time.  But it is worth noting that the dry gas component of production is small and getting smaller.  These are also fantastic well results, as Wall Street recognized.  They also support an important new trend, that of increasing well productivity in the western portion of the Eagle Ford.

Overall, dry gas comprised only 5-10% of production, with Gonzales County at the high end and La Salle at the low end of the range.  These ratios are much more oily than the current production in these counties, and likely foretell a decline in the casinghead gas % of future oil completions, since EOG is operating 26 rigs, more than 10% of all EF rigs.