Eagle Ford Shale Reserves Increased By EOG

In a recent investor presentation, dated Feb, 16, 2012, EOG Resources increased their estimated Eagle Ford shale reserves from 900 million Boe (net after royalty) to 1.6 billion Boe (barrels of oil equivalent).  Broken down, the company estimates that their more than 647,000 acres contains 1,136 MMbo (oil), 256 MMbbl of NGL’s, and 1,248 Bcf.  This boosts the companies estimated reserves by 78%.  The reason for the increased Eagle Ford shale reserves estimate is due to the success of downspacing tests. Favorable results from these tests indicate that EOG Resources should be able to go from 130 acre spacing to 65-90 acre spacing across most of their EFS acreage. The company continues to work on increasing the recovery factor for the Eagle Ford shale, which they now estimate at around 6%.

IP rate for some of EOG’s recent wells in the Eagle Ford shale has exceeded 3,000 Bopd plus NGL’s and natural gas. Among their big producers are the Mitchell Unit #3H, 4H, 5H, 6H, 7H, and 8H, in Gonzales county, with IP ranging from 2,833 to 3,529 Bopd.

Other’s companies will most likely be following EOG’s lead and increasing reserve estimates due to the possibility of downspacing.

EOG has drilled 375 wells in the EFS, with 3,200 more to drill. Plans are to drill 280 net wells in 2012.