EOG Resources (NYSE:EOG) continued to exploit the company's multiple horizontal oil opportunities in the first quarter of 2011 and also disclosed initial results from a new play that it has been developing in the western United States.
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EOG Resources reported year-over-year production growth of 14% in the first quarter of 2011, led by higher oil and natural gas liquids volumes. The company produced 409,100 barrels of oil equivalent (BOE) per day in the quarter ending March, compared to 358,500 BOE per day in first quarter of 2010.
This makes EOG Resources one of the fastest growing large capitalization exploration and production companies. One company that grew production even faster was Apache Corporation (NYSE:APA), which reported 25% year over year production growth.
EOG Resources has a large inventory of oil resources and was active in developing the Eagle Ford Shale and Bakken formations during the quarter. In the Eagle Ford Shale, the company was producing 23,000 BOE per day at the end of the first quarter of 2011 and claims it could be the largest producer in the oil window of the play.
EOG Resources is operating 18 rigs on its acreage and reported multiple successful wells during the quarter, including one that extended the play to the northeastern part of its acreage in Gonzales County.
In North Dakota, EOG Resources is operating multiple rigs and is working on the Bakken formation on its acreage. The company has grown production so quickly that it is shipping some of its crude by railroad until enough pipeline is in place.
EOG Resources also reported three successful wells into the Niobrara formation in the Denver Julesburg Basin in Colorado. The company plans further work on its 140,000 net acres in this basin during the rest of 2011.
Other companies developing the Niobrara include Rex Energy (Nasdaq:REXX), which has 39,000 net acres and recently permitted two wells on its acreage in Wyoming.
Powder River Basin
EOG Resources reported a 138,000 net acre position in the Powder River basin in Wyoming, where the company has been working on the Turner Sandstone. The company is operating one rig here and has drilled and completed eight wells total in this new area.
EOG Resources reported that the Crossbow 7-06H well produced 275 barrels of oil, 2 million cubic feet of natural gas and 100 barrels per day of natural gas liquids during the first 30 days of production.
EOG Resources is working on other targets besides the Turner Sandstone on its acreage in the Powder River Basin. The company is also testing at least six other sandstone and shale formations, including the Niobrara.
Another company unveiling a new play during first quarter of 2011 earnings season was Devon Energy (NYSE:DVN), which disclosed a position in the Tuscaloosa Marine shale. The company has plans to drill two horizontal wells later in 2011.
EOG Resources has a large number of properties prospective for oil and other liquids and is moving to develop these assets in 2011. The company also provided results from a new oil play in Wyoming. (So you've finally decided to start investing. But what should you put in your portfolio? Find out here. Check out How To Pick A Stock.)
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