OREANDA-NEWS. EOG is increasing its full year 2014 crude oil and condensate production growth target to 31 percent from 29 percent and total production growth target to 16.5 percent from 14 percent, as it continues to improve well productivity in its key domestic crude oil plays.

In the third quarter, EOG's U.S. crude oil and condensate production increased 29 percent, compared to the same prior year period. Production gains from the South Texas Eagle Ford, North Dakota Bakken and Delaware Basin led EOG's crude oil production growth. Driven by the Delaware Basin and Eagle Ford, total natural gas liquids (NGLs) production increased 25 percent, and total company natural gas production increased 3 percent, compared to the third quarter 2013. Total company production increased 17 percent.          

In the Delaware Basin, EOG has confirmed that 90,000 of its 140,000 net acre position in the Wolfcamp is in a highly over-pressured crude oil window, representing a significant enhancement in the play's reinvestment rate-of-return. EOG drilled two Wolfcamp wells that have a 50 percent crude oil mix.  In Lea County, New Mexico, the Diamond SM 36 State #1H began production at 1,340 barrels of oil per day (Bopd) with 195 barrels per day (Bpd) of NGLs and 1.3 million cubic feet per day (MMcfd) of natural gas. On the Texas side of the play in Loving County, the Voyager 15 #3H had a high initial production rate of 1,890 Bopd with 385 Bpd of NGLs and 2.5 MMcfd of natural gas. EOG has 100 and 48 percent working interest, respectively, in these two wells. EOG plans to increase its Delaware Basin Wolfcamp drilling activity on the 50 percent crude oil acreage.

Near the Texas/New Mexico border in Loving County, Texas, EOG completed its third well in the Second Bone Spring Sand this year. The State Magellan #2H, in which EOG has 100 percent working interest, began initial production at 1,825 Bopd with 295 Bpd of NGLs and 2.2 MMcfd of natural gas. Drilled 20 miles southwest of EOG's existing production, the well confirms the prospectivity of the Second Bone Spring Sand over a greater amount of acreage. These results, together with recent mapping and geological studies, indicate EOG has at least 90,000 net acres of Second Bone Spring Sand potential across its acreage.

Also in Loving County, Texas, EOG has been drilling Leonard Shale wells. The State Pathfinder #1H and #3H, which were completed in the Leonard 'A' zone as 450-foot spacing tests, had a combined rate of 2,340 Bopd with 470 Bpd of NGLs and 2.6 MMcfd of natural gas. EOG has 100 percent working interest in these wells. EOG is continuing to test various spacing patterns between and across producing zones in the Leonard Shale where it holds an expanded 80,000 net acre position.

Through drilling and completion improvements, EOG again realized outstanding capital efficiencies and strong well results in its single largest growth engine, the Eagle Ford. In Gonzales County, the Neuse Unit #1H was turned to sales at an initial peak rate of 4,170 Bopd with 160 Bpd of NGLs and 935 thousand cubic feet per day (Mcfd) of natural gas. The Boothe Unit #12H, #13H, #14H and #15H came online at rates ranging from 2,640 to 3,445 Bopd with 490 to 580 Bpd of NGLs and 2.8 to 3.4 MMcfd of natural gas. EOG has 100 percent working interest in these five Eagle Ford wells.

In Karnes County, the Colleen Unit #1H had an initial production rate of 3,660 Bopd with 360 Bpd of NGLs and 2.1 MMcfd of natural gas. The Maverick Unit #2H came online at an initial rate of 3,680 Bopd with 365 Bpd of NGLs and 2.1 MMcfd of natural gas. The Lake Unit #4H, #6H and #8H began production from two different pads at a combined rate of 6,460 Bopd with 735 Bpd of NGLs and 4.3 MMcfd of natural gas. EOG has 100 percent working interest in these five Eagle Ford wells.

West of Gonzales and Karnes, in LaSalle and McMullen counties, among the wells turned to sales, 31 had initial production rates exceeding 1,200 Bopd including the Corner S Ranch  #11H, #12H, #13H, #14H, #15H and #16H. The wells, in which EOG has 100 percent working interest, had a combined rate exceeding 8,400 Bopd, 325 Bpd of NGLs and 1.9 MMcfd of natural gas.

EOG's Bakken drilling activity for the year has concentrated on its Parshall Core and Antelope Extension acreage. In the Core, EOG continues to test various spacing patterns to determine a development program that maximizes the field's resource potential. While preliminary results from 700-foot spaced wells are encouraging, EOG will continue to analyze production data. EOG is simultaneously testing well patterns of less than 700 feet. In the Antelope Extension area, EOG has pursued development drilling in the Bakken and tested various Three Forks intervals to determine the prospectivity of the formation across its acreage. Additionally, EOG has reduced its overall Bakken drilling costs by integrating self-sourced sand and identifying drilling efficiencies, as well as refining completion techniques in both areas.

In the Core area, the Parshall 44-1004H, 45-1004H and 46-1004H, in which EOG has 69 percent working interest, were turned to production at initial rates of 2,710, 2,005 and 2,105 Bopd with 875, 665 and 860 Mcfd of rich natural gas, respectively. The Parshall 47-2226H, 48-2226H and 49-2226H began production at a cumulative rate of 5,105 Bopd with 2.3 MMcfd of rich natural gas. EOG has 70 percent working interest in these three Core wells.

In the Antelope Extension area, EOG had successful drilling results from the first, second and third Three Forks benches. The first well drilled in the third interval of the Three Forks was the Mandaree 134-05H, in which EOG has 70 percent working interest. It came online at 1,410 Bopd with 2.2 MMcfd of rich natural gas. In the second interval, the Mandaree 135-05H, in which EOG has 69 percent working interest, had an initial rate of 1,620 Bopd with 2.5 MMcfd of rich natural gas. EOG has 42 percent working interest in the Mandaree 17-05H, which began producing at 1,745 Bopd with 2.8 MMcfd of rich natural gas from the first bench. EOG is continuing to test and drill Three Forks wells in all three intervals across its Antelope acreage.

In the DJ Basin, EOG is simultaneously developing the stacked Codell and Niobrara formations from multi-well pad locations in Laramie County, Wyoming. During the third quarter, a seven-well pattern of three Codell and four Niobrara wells was brought to production with a combined initial rate exceeding 7,800 Bopd with 5.4 MMcfd of rich natural gas. The wells, in which EOG has 75 percent working interest, were drilled with 710-foot spacing between laterals averaging 9,400 feet. Initial production and drilling results from the Codell and Niobrara are encouraging.

In Campbell and Converse counties, Wyoming, EOG is actively developing its acreage in the Powder River Basin with a single drilling rig program. EOG completed one well from the Parkman formation and two from the Turner during the third quarter. The Mary's Draw 412-1527H began sales at an initial rate of 1,190 Bopd with 270 Mcfd of rich natural gas from the Parkman formation. The Mary's Draw 24-13H and 25-13H had a combined crude oil rate of 1,880 Bopd with 3.1 MMcfd of rich natural gas from the Turner. EOG has 100 percent working interest in these three wells.