We are hearing rumors that EOG is or has made plans to sell out their position in the Louisiana Chalk play due to poor results on initial test well and initial seismic result data from shoot. Does anyone have any verifiable information on this subject?
Yes, they are selling all of their leases on the west side of the Atachafalaya River and only keeping the leases they have on the east side of it. Roughly half of their overall position. Not sure if the sale has gone thru yet though.
Jay, do you know why they would sell 1/2 to the West and if so to who?
They were not happy with their well results and decided to focus on the shallower section to the east. Heard buyer might be Statoil or maybe not.
EOG is far from done with the play. Rumors are they possibly cut a fault that didn't show up on 2D. They have a tremendous amount of acreage to develop and the clock is ticking. To add to Jay's comments, Devon is a possible buyer.
Thanks for the info to both Jay and East Tex!
3D really needs to be acquired and processed in order for companies to have a tool for hazard avoidance, completion and Frac techniques.
Modeling of the 3D's are completely different than 10 years ago and acquisition parameters are designed specifically for Reservoir Optimization in mind.
Let's see EOG drills one well, not a total bust, canceles 3D shoot, puts lease block up for sale because the play is a bust? Seems odd that can be determined with one exploratory well as relates to their entire acreage position.
Probably just flipping it for cash. Maybe be very profitable to do so.
No one, including EOG, has said anything about the play being a bust. The company has simply shifted their focus to a different part of the fairway. If EOG isn't interested in their western leasehold other companies may be cautious about acquiring it. EOG is the most successful unconventional exploration and production company in the U.S. onshore. That don't make them infallible however.
Point taken, then why back out of the whole 3D shoot? Rumor is just that, however, no one seems to be able to confirm or deny that it is just a portion of the lease block that is for sale. No doubt they are the best at what they do obvious reason for questions. Very contradicting position on their part after Eagles Ranch, 3D, SWD well permits, leasehold etc.
The EOG move has been commented on previously by jay. Look up the page 8 or 9 replies back.