EOG Adds To Resource Potential In Powder River Basin

EOG Resources Inc. (NYSE: EOG) has grown its estimated resource potential in Wyoming’s Powder River Basin to more than 2 billion barrels of oil equivalent (Bboe), having added the Mowry and Niobrara shale plays to the mix.

The Houston-headquartered company said it added 1,560 net premium drilling locations to its inventory with the two shale plays in Powder River Basin, which is now EOG’s third largest asset. The premium drilling locations equate to more than 30 years of inventory.

“Oil cuts in the Mowry range from 20% to 60% depending on location. We completed two Mowry wells during the second quarter, and the 30-day initial production averaged almost 2,200 boe/d,” David Trice, executive vice president of E&P for EOG, said during an earnings call Aug. 3. “Our Niobrara Shale resource estimate is 640 million barrels of oil equivalent from 555 net premium locations also on 660-ft spacing. We expect about half of our estimated Niobrara resources is crude oil.”

Resource estimates for both plays were based on 660-ft spacing and nearly 2-mile lateral lengths with well costs for both around $6 million, executives said.