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?

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Permalink Reply by John Matherne 1 hour ago
What if the well produces for many more years then it becomes economic

My "reply" button not working / commenting on above note from John M.

"Economic" is not just producing enough O&G to payout D&C and production costs - for SEC "economic" consideration, the numbers are based on discounted rate of return and Present Value (PV). So even if there are is a long period of production, the PV / Discounted ROI analysis would not get one to an "economic well".

EUR projections for the EOG wells range from 300 to 400 MBO plus 300 to 400 MMCF of gas depending on B factor and decline variables. But it will take until 2050+ to achieve these numbers based on the production profile to date.

Thanks Rock Man

You Rock

Reply by littleasy 1 hour ago
Yes, another pump and dump stock scheme might prove a bit too much, even in these ethically troubled times. I was looking at the history of the LA AC earlier and was surprised to learn that some consider it to be potentially the largest onshore deposit in the US. Equivalent to 4-6 Giddings fields in size???

My Reply - Which report are you looking at? Sounds like a USGS report. These tend to be ultra optimistic and extol VERY high potential for huge areas. Personally I have never seen such a report be realistic in its expectations.
And was this report talking about the entire AC section in Louisiana including the historical fracture related production?

It was an ancient OGJ article from 1996.

Hot Louisiana chalk play spawning more drilling, added facilities

https://www.ogj.com/articles/print/volume-94/issue-52/in-this-issue...

“John Vering, UPR's vice-president of exploration and production services, said, "I'm guessing you could take maybe four, five, or six Giddings fields and fit them in along the trend from the Sabine River over to Baton Rouge, just in the area that has seen the activity thus far."”

Pie in the Sky, probably?  But, it did take mankind over 2,500 years to fully appreciate Calculus.  We don’t have that timeline, but as you say, “It’s all about the rock,” and LA apparently has a lot of it.

That article and 3 bucks won’t get you a venti. 

Jay

Wasn’t meant for you!!!  Might also be true for LA AC?

EOG Demonstrates How It's Done In The Shale Patch (If You Have The Right Acreage)


Aug. 24, 2018 10:10 AMEOG

https://seekingalpha.com/amp/article/4201843-eog-demonstrates-done-...

Summary

  • EOG's favorable Eagle Ford acreage position helped it become a profitable shale producer, but that acreage is increasingly getting saturated with wells.
  • Using its superior position relative to peers, EOG managed to get ahead of the issue by positioning itself in other fields, seemingly maintaining a superior position compared with peer average.
  • It remains to be seen how EOG will fare once Eagle Ford becomes a marginal field for it, but early indications are that it will do alright.
Good summary article of a good company and how they position themselves into successful "sweet spots" in various plays. Way too early for them to say much of anything @ AC in Louisiana, but general area is located on their USA map. I remember when their list only included Eagle Ford.

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