OREANDA-NEWS. In 2014, EOG expanded activity in the Delaware Basin resulting in the identification of considerable new potential across three separate targets. EOG's technical understanding of the basin advanced, confirmed by a series of impressive well results in the second half of the year. With lower costs and improved well productivity, EOG's drilling program across the Delaware Basin is now consistently generating rates-of-return which are on par with the Eagle Ford and Bakken plays.

In the Second Bone Spring Sand, EOG applied advanced completion techniques and determined that at least 90,000 net acres of its leasehold are prospective in the oil window. In the Leonard, the company continued to make technical progress. EOG piloted multiple downspacing tests which could eventually increase the size of its crude oil drilling inventory in the Leonard play.

In the Delaware Basin Wolfcamp, EOG made significant advancements in well productivity, breaking its own record initial production rates with each successive well. Most recently, EOG completed three wells in Reeves County. The State Harrison Ranch 57 #1501H and #2101H and the State Apache 57 #202H had initial production rates ranging from 1,500 to over 2,000 Bopd, with 550 to 700 Bpd of NGLs and 4.0 to 4.5 MMcfd of natural gas.

Also in 2014, EOG confirmed that 90,000 net acres of its total 140,000 net-acre Wolfcamp position are in the oil window.

In 2015, capital expenditures will increase in the Permian Basin as EOG expects to complete about 95 net wells, a 53 percent increase compared to 2014. Capital will be directed to development drilling in the northern Delaware Basin targeting EOG's three highest-return plays - the Leonard, the Second Bone Spring Sand and the Wolfcamp. Ongoing technical work will determine the most efficient approach to develop these three plays and enable EOG to test additional prospective zones.