EOG Increased Its Delaware Basin Net Resource Potential
Advancements in targeting and completion technology are enabling tighter well spacing and increased production per well. In the Second Bone Spring Sand oil play, EOG provided an initial net resource potential estimate of 500 million barrels of oil equivalent (MMBoe) and added 1,250 net drilling locations in this high quality crude oil play.
EOG added 26,000 net acres to its Delaware Basin position in the third quarter 2015 through three tactical acquisitions in Loving County, Texas, and Lea County, N.M., for a total of USD 368 million. Most of the acquired acreage is adjacent to EOG's existing operating areas in the high rate of return Delaware Basin oil window.
Combined, these acquisitions added net production of 750 barrels of oil equivalent (Boe) per day with an associated 2.5 MMBoe of proved producing reserves. These acquisitions and the updated resource potential bring EOG's total Delaware Basin net position to 2.35 BnBoe and 4,900 locations, providing decades of high return drilling potential.
"Outstanding technical and operational advances enabled us to increase potential resource estimates for our Delaware Basin position by over 70 percent," Thomas said. "We are also pleased that through our tactical acquisitions of new, high quality Delaware Basin acreage, we added assets which meet our high rate of return hurdle. EOG's Delaware Basin assets along with the company's Eagle Ford and Bakken positions continue to grow in both size and quality. With premier assets and commitment to innovation, EOG continues to enhance its capability for high return growth in a low oil price environment."