Bakken Shale Waterfloods Better Understood in Early 2013 - EOG

EOG Resources Bakken Shale Map
EOG Resources Bakken Shale Map

Bakken Shale waterfloods could be proven (or not) by late 2012 and you can expect to hear more from EOG in early 2013. EOG Resources' CEO has been open about additional recoveries being a major growth driver for the company going forward. The company highlights three areas when discussing horizontal oil production growth. The first bullet is where the company expects the most.

  1. Improving recovery factors - More dense well spacing and secondary recovery
  2. Explore for new horizontal liquids prospects in North America
  3. Indentify international horizontal oil opportunities with limited capital exposure

Bakken Secondary Recovery

EOG commenced secondary recovery pilots in mid-April of 2012 and expects to have a good understanding of the reservoirs response to water at year-end. Mr. Papa commented:

"We should have enough results to reach a conclusion. We should see or not see waterflood response by year-end 2012 or 2013......From the results of lab testing on cores, we feel pretty good at least from a labratory perspective. 2013 will be when we have an answer."

The company does not think water injection will be most effective in the Eagle Ford Shale. Expect to see dry gas injection tested for secondary recovery in the Eagle Ford in late 2013.