Saturday, August 8, 2009

EOG Toots its Horn

EOG Resources generally has been on the PR sidelines in regards to the Haynesville Shale, but in its second quarter earnings release last week, it trumpeted some of its Haynesville Shale results with a little extra energy. The company has about 116,000 net acres and is currently running four rigs. The rig count will increase to ten in 2010.

The company reported five wells, all in DeSoto Parish, LA. EOG reports that the initial production rates are pipeline restricted rates and have the possibility for higher IP rates. Here are the wells and IP rates:

  • Johnson 6#1: 14.3 MMcf/day
  • DN Bell #1: 14.4 MMcf/day
  • Thompson 11#1: 14.9 MMcf/day
  • Lafitte 34 #1: 15/7 MMcf/day
  • Billingsley 35 #1: 14.6 MMcf/day

In another nod to the increasing attention to outsized IP rates that several companies are promoting, EOG published a bar chart comparing the company’s Haynesville Shale achievements to those of several competitors showing that more than 90% of its wells have had IP rates greater than 10 MMcf/day.

It’s not quite an IP arms race, but it’s always curious to see companies promoting things they would normally keep close to their vests.

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