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EOG Resources aims to keep number one spot in 2019

January 18, 2019

Houston exploration and production company EOG Resources aims to keep its spot as the number one driller in the Texas.

Since the beginning of the year, EOG has filed for 36 drilling permits for projects split between the Eagle Ford Shale and Permian Basin.

Thirty-one of the permits are for horizontal drilling projects targeting the Eagle Ford Shale formation in Atascosa, DeWitt, Gonzales, Karnes and McMullen counties at total depths varying from 11,000 to 13,000 feet. Five of the permits are for horizontal drilling projects targeting the Phantom field of the Wolfcamp geological formation in the Permian Basin’s Loving and Reeves counties to a total depth of 14,000 feet.

The company filed for 559 drilling permits last year -- more than any other exploration and production company.

During the first 10 months of 2018, the company produced 263.9 billion cubic feet of natural gas, 85.5 million barrels of crude oil and 5.1 million barrels of an ultra-light form of crude oil known as condensate.

EOG Resources is expected to report its fourth quarter and end-of-year earnings on Feb. 27. The consensus among analysts is that the company will close 2018 with a $3.3 billion profit on $16.8 billion of revenue.

Permian Basin

Forty-five companies filed drilling permit applications for 184 projects in the Permian Basin of West Texas. Midland saltwater disposal well operator Probity SWD is preparing to drill three new disposal wells at two new facilities. The company obtained three drilling permits for two new injection wells on its Forty Four SWD lease in Midland Country and one on its Section 209 SWD lease in Reagan County. The wells on Forty Four SWD lease target the Ellenburger formation at a depth of 15,200 feet and the Spraberry formations at 6,000 feet deep. The well on the Section 209 SWD lease targets the Wolfcamp formation at a depth of 11,000 feet.

Founded in October 2012, Probity owns and operates at least nine saltwater disposal facilities in the Permian Basin. Saltwater disposal facilities are used to dispose of waste water from the oil and natural gas projects, which contains high levels of salts, heavy metals and other chemicals.

Eagle Ford Shale

Sixteen companies filed 87 drilling permits for projects in the Eagle Ford Shale of South Texas. Not everybody has the same target. Houston service company Sierra Pine Resources International is targeting the San Miguel, a sandstone formation that lies above the Austin Chalk and Eagle Ford. The company is seeking permission to target the San Miguel in a horizontal drilling project on its Bowman lease in Dimmit County. Located about six miles southeast of Big Wells, the oil well targets the Big Wells field of the San Miguel formation to a total depth of 6,400 feet.

Founded in 1997, Sierra Pine is testing a technique known as waterflooding to boost oil well production. Waterflooding involves the use of vertical wells to inject water deep underground to create pressure and boost the production of horizonal oil wells. The company’s tests yielded more than 22 million cubic feet of natural gas and more than 7,100 barrels of crude oil during the first 10 months of 2018, Railroad Commission of Texas data shows.

Haynesville Shale

Seven companies filed seven drilling permits for projects in the Haynesville Shale of East Texas. Tyler oil and natural gas company Tanos Exploration is preparing for its first project of the new year. The company obtained a drilling permit for a new gas well on its Jenk-Hazb-Hazel-Byrne lease in Harrison County. Located about nine miles southwest of Marshall, the horizontal drilling and hydraulic fracturing project targets the Carthage field of the Haynesville Shale down to a total depth of 11,307 feet.

Founded in 2007, Tanos owns and operates more than 1,500 wells on more than 164,000 acres of leases in the Ark-La-Tex region. The company filed 27 drilling permits for projects in Texas in 2018. The company’s 787 leases in Texas produced more than 42.1 billion cubic feet of natural gas, 195,000 barrels of condensate and more than 13,000 barrels of crude oil during the first 10 months of 2018, Railroad Commission of Texas data shows.

Barnett Shale

Eight companies filed 12 drilling permits for projects in the Barnett Shale of North Texas, but only one for a horizontal well. Fort Worth exploration and production company Texxol Operating Co. is preparing for its first project of the new year. The company is seeking permission to drill a new gas well on its Gentry lease in Wise Country. Located about five miles south of Paradise, the horizontal drilling project targets the Newark East field of the Barnett Shale down to a depth of 8,000 feet.

Founded in May 2001, Texxol operates wells in 15 counties across North Texas. The company produced more than 3.2 billion cubic feet of natural gas and more than 26,000 barrels of crude oil during the first 10 months of 2018, Railroad Commission of Texas data shows.

Conventionals

Fifteen companies filed for 22 drilling permits for projects outside of the state’s four shale basins. Houston oil company White Oak Energy is seeking permission to recomplete four natural gas wells in the Rio Grande Valley. White Oak plans to recomplete four vertical wells on four leases in Starr County. All four projects target the Vicksburg sand formation but vary in depths from 9,950 to 12,283 feet.

ounded in 1998, White Oak Energy owns and operates oil leases along the Coastal Bend of Texas and Louisiana. The company’s 971 leases in Texas produced more than 7.4 billion cubic feet of natural gas and more than 290,000 barrels of crude oil during the first 10 months of 2018, Railroad Commission of Texas data shows.

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