EOG Reports 2008 Results

Attached is EOG results and operational highlights. Of particular interest are the results from two Haynesville Shale wells in De Soto Parish.

"Testing the Haynesville Shale in North Louisiana, EOG drilled two horizontal wells on
its acreage during 2008. The Martin Timber #2H tested at a rate of 17.4 million cubic feet per day (MMcfd), gross with 4,700 psi flowing tubing pressure. The Bedsole 27#1H tested at a rate of 17.5 MMcfd, gross with 7,400 psi flowing tubing pressure. EOG has 100 and 57 percent working interest in the wells, respectively. Due to pipeline limitations, the wells are currently producing at a combined restricted rate of 17 MMcfd until additional infrastructure is in place. EOG has estimated net reserve potential of 3 to 4 trillion cubic feet of natural gas on its 116,000 net acres and expects to drill 14 Haynesville wells in 2009."

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Permalink Reply by charles billingsley on February 22, 2009 at 10:22
jay, I signed a lease extension with them (90 days) and got a check when I signed. So far, so good. I expect to see two rigs drilling (2 different units) before it expires (jun 30). Both will be Haynesville wells. No flies on that.
Permalink Reply by Jay Murrell on February 22, 2009 at 11:16
Charles:

EOG is a good ops outfit in my experience. If you've got a straight "no frills" OGML with them you probably won't have any problems, other than getting into pay status. Problems arise when you have a more complex relationship.

Good luck,

Jay
Permalink Reply by BirdDawg, plain ole' idiot on February 22, 2009 at 13:23
Jay,
Most of the people on here are not going to get in a "more complex relatonship" with them. EOG knows how to make a horizontal shale well. Thats what most of us want. Many companies are slow to begin to pay royalty owners. But then it comes, and it comes every month. Other companies are the same, KCS for example, has been slow to begin to pay in the Terryville Field. I have repeatedly told people on here that a working interest (or riding the well down) may not be the best idea for the average owner. We catch your drift about your personal problems with EOG working interest. I can tell you a lot more about other companies. But all of that does not affect the normal royalty interest owners on this site. We catch your drift, please let it lay now.
Thanks
Permalink Reply by Jay Murrell on February 22, 2009 at 16:56
BirdDawg:

Not sure I agree with you.

I've seen some pretty exotic suggestions re lease terms on this site ... for example, if you negotiate special provisions for transportation and marketing, any agreement you make with EOG will be difficult to enforce....short of a lawsuit.

Lawsuits are expensive.
Permalink Reply by sesport on February 22, 2009 at 23:35
Jay - I think that with almost 10K members here, as well as the members of various "coalition" groups that may not be spoken for here, BirdDawg has come to an accurate conclusion that most l/o, m/o are not looking for, or signing, the more complex leases involving transportation & marketing.

I imagine that those who do look for "exotic clauses" are doing so quietly & confidentially with very competent counsel.

Because, yes, lawsuits ARE expensive ... not only in terms of $$$$$$$$$ (even a large group/coalition has to weigh that factor), but also in terms of time & emotion. We appreciate your POV on that.

sesport :0)
Permalink Reply by Grillin' - MmmMmm on February 22, 2009 at 16:21
I agree that EOG is one heck of an oil and gas company. They can find it, drill it and produce it. What Jay is referring to is something I've also heard about them. Since I compete with them, I'll avoid railling on them. But having to hire lawyers just to collect your royalties or WI payments after a year or so has passed is really not what I would call a "great situation" nor does it reflect well on a "great company". I do know that they are trying to fix that piece but if you enter into a contract, make sure all "i's" are dotted and "t's" are crossed.
Permalink Reply by Jay Murrell on February 22, 2009 at 16:47
AMEN, AMEN, AMEN,

And, believe it or not, there are E&P companies out there that do have integrity, so, why do business with one that has a demonstrated propensity to not abide by the agreements it enters into?
Permalink Reply by Two Dogs, Pirate on February 20, 2009 at 16:16
Jay, I mix jello and Science Diet small bites dog food, think that the dog food has some shale in it, then I run it through my weenie dog whose back legs don't work, and what comes out doesn't have to be nailed, it sticks like super glue, to the floor, to the wall and on one shot to the ceiling.
Permalink Reply by Doug Fitzgerald on February 20, 2009 at 16:30
Did EOG say anything about drilling west of San Augustine Texas ??
I leased to EOG in june 08

Doug

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