According to sources in Cotulla Texas, there appears to be some truth to the rumors that EOG Resources is selling or swapping some acreage in McMullen and LaSalle counties to Chesapeake. The first such transaction appears to have taken place in the “heavy oil” window in LaSalle county, near Millett. EOG has made no public mention of selling Eagle Ford shale acreage to Chesapeake and these are most likely just small scale “land swap” transactions on orphaned acreage. EOG appears to be selling Chesapeake some non – producing leases which are primarily surrounded by Chesapeake acreage, and in areas where Chesapeake has already secured takeaway capacity through long term pipeline contracts. So far it seems unlikely this sale will affect areas such as the Naylor and Jones units near Fowlerton or the Offield – Martindale Unit near Los Angeles since those leases already have producing wells on or nearby. Nothing is certain however, in the fast paced game being played by the large E&P companies in the Eagle Ford Shale. If companies such as EOG have decided they want to sell acreage in areas that may make 250 Mbbl EUR wells to pay for drilling more 800 Mbbl EUR wells in the east for example, it may make sense for them to do so.
If our readers have any insight on the EOG Resources to Chesapeake Energy sale, please let us know in the comments section below.
Source: Texas RRC GIS Viewer. The notations on the map are ours.
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