EOG Will Utilize Self-Sourced Sand in Bakken Completions

EOG Resources Bakken Map
EOG Resources Bakken Map

EOG Resources is shifting to self-sourced sand for use in completions in the Bakken and Three Forks. The company has owned and operated sand mines supplying other plays for years.

EOG's sand mines will contribute to significant well cost savings.

Most of the company's current activity is focused in the core area of the Parshall field and the company's Antelope Extension. EOG plans to complete 54 net wells in those areas in 2013.

EOG is consistently making the best oil wells in the best two oil plays in North America, the Eagle Ford and Bakken/Three Forks.
— CEO, William R. "Bill" Thomas.

The company's utilization of more fluid and sand in completions is proving successful in the Bakken. The company has seen both improved recoveries and returns in the play.

EOG Bakken and Three Forks Well Highlights

  • Six wells produced initial rates of approximately 2,000 b/d of oil or more in Mountrail County
  • Three - Three Forks wells in the Antelope Area came online at rates between 1,235-2,100 b/d of oil

"Every quarter, EOG's technical understanding of the Eagle Ford and Bakken/Three Forks expands, as we further modify completion techniques that boost overall well productivity and economics," Thomas said.

EOG Increases Company-wide Production Growth Estimates

Production guidance in 2013 has been increased again. EOG expects 39% growth in oil production, 17% growth in NGL production and company-wide growth of 9%. That`s up from initial estimates of 28% crude oil growth, 10% NGL growth, and just 4% company-wide growth at the beginning of the year.

EOG Resources' Secrets To Success In The Bakken & Other Shale Plays

Oil Rail Car Image
Oil Rail Car Image

EOG Resources opened North Dakota to the modern oil industry when the company discovered the Parshall Field in 2006. The company led the shift to horizontal drilling and hydraulic fracturing in oil plays like the Bakken and Eagle Ford. Forbes published an interesting article on the company in July.

EOG invested in areas that weren't common for oil companies just a few years ago.

  • EOG spent $100 million on a rail terminal in 2008
  • EOG invested $200 million in three sand mines and two processing facilities in Wisconsin

EOG increased the value of oil the company was producing by bypassing pipeline choke points.

Sand mines in Wisconsin save the company an average of $500,000 per well. Self-sourced sand saves the company as much as $300 million per year!

In addition, EOG is using microseismic sensors to understand the reach and effectiveness of the company's well completions. As a result, the company has shifted from focusing on reach in completions to utilizing shorter, but more energy intensive fracks. Shorter frack lengths allow the company to drill wells at closer acreage spacing.

Read the full article at forbes.com