Current EOG Stock Info

Most wells testing in the top 20:  EOG leads the Eagle Ford, Pioneer leads the Midland, Cimarex leads the Delaware

KLR Group released a research note Thursday covering well data provided by the Texas Railroad Commission for the third quarter of the year, noting that activity is down overall, but that test rates are increasing per well. July 2016 production was down about 0.3% month-over-month and 8.4% year-over-year, but test rates have increased in the Eagle Ford and Midland by 22% and 16%, respectively. Despite a rash of deals in the Delaware Basin recently, test rates are down about 27% to approximately 859 BOEPD versus 1,174 BOEPD in the second quarter.

Best in the Eagle Ford: 4,416 BOEPD

In the Eagle Ford, EOG Resources (ticker: EOG) drilled 11 of the top 20 wells during the third quarter, including the highest test rate per 1,000 lateral feet with the Hickok 4H well, which EOG reported had a test rate of 4.4 MBOEPD. EOG holds approximately 608,000 net acres in the Eagle Ford with typical well lengths of 5,300 feet, and a net EUR of 580 MBOE, according to the company. EOG has been expanding its Eagle Ford position, adding 390 “premium” drilling locations from February to August of this year.

KLR top wells in the Texas Eagle Ford Q3'16

Best in the Midland: 2,773 BOEPD

Pioneer Natural Resources (ticker: PXD) had 13 of the top 20 wells in the Midland, according to the KLR report, including the Texas Ten Y Pu 3606H well, which topped the list with a test rate of 2.8 MBOEPD. PXD recently expanded its position in the Midland with a $435 million acquisition from Devon Energy (ticker: DVN), which added about 28,000 acres near its current operations, the company said in an investor presentation. The only other company to have more than one well in the top 20 in the Midland was ExxonMobil (ticker: XOM), which drilled numbers 18 and 20.

KLR top producing wells in the Texas Midland Basin Q3'16

Best in the Delaware: 1,626 BOEPD

Test rates in the Delaware Basin were down 36% quarter-over-quarter to 859 BOEPD in the third quarter after a 23% spike at the beginning of the year when the average test rate was approximately 1.3 MBOEPD. Test rates in Culberson and Reeves counties remain above 1,000 BOEPD while the remaining counties have experienced variances on a quarterly basis, said KLR.

Cimarex Energy (ticker: XEC) drilled seven of the top 20 wells in the Texas Delaware, although the number-one well went to Williams Clayton Energy with a well in Reeves county with a test rate of 1.6 MBOEPD.

XEC said in its most recent investor presentation that the Delaware was its “biggest opportunity,” with approximately 230,000 net acres in the play, over 180,000 of which are in Culberson and Reeves counties.

KLR top performing wells in the Texas Delaware Basin Q3'16

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