Wednesday, February 10, 2010

EOG: Good Bossier Test

EOG Resources released its quarterly update yesterday and trumpeted both its new Middle Bossier Shale test and an update of what it considers to be the sweet spots of the Haynesville Shale.

First, the Mid-Bossier test.  The company revealed that its Sustainable Forests 5 #2-ALT well, which targeted the Mid-Bossier Shale, had an inital production rate of 13.1 MMcf/day and reached a vertical depth of 11,400 feet.  EOG estimates that the well has an EUR of 8 Bcfe, which is as high or higher than the figures publicly cited for Haynesville wells.  The well is located in the Trenton prospect in DeSoto Parish, where EOG says it has five rigs working. (NOTE: I can't find a Sustainable Forests 5 #2-ALT well.  I think it actually might just be #2 (w/o "ALT), located in the Ten Mile Bayou Field of DeSoto, Sec. 5/Township 11/Range 12, serial #240171, and is classified as a "non-unitized Haynesville stray.")

Second, the company touted its definition of the "sweet spots" on both the Texas and Louisiana sides.  I don't doubt EOG's interpretation of the Texas sweet spot, but the blue circle is curiously drawn around a high concentration of EOG leases.  Hmmmm. 

The Mid-Bossier news is very good.  I know a lot of people who are anxiously awaiting more test results to better define the boundaries of the shallower play.

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