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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There are more important imperatives.  Put climate change at the top of the list.

If you don’t know, I suppose there is no answer!!!

If the price of oil does not reach ~$80 no body is gonna drill AC in Pointe Coupee in my humble opinion.  So if the fat lady wants more food, cheaper drilling locations will be found and used.  And right now the fat lady is at ~$65  a barrel.  Maybe they will renew some leases but they probably will not drill.  Of course if a full scale shooting war breaks out between Iran and whoever and the Straits of Hormus closes, then the story line is much different.  That's what the fat guy is looking at, the price of crude oil.

Yes, Boom & Bust also comes to mind.  If EOG followed this administration’s point of view, they would be at the bottom of the list and not the top.  In fact, it is counter to their business model.

Thanks for the comments.

EOG seems to be jinxed in Louisiana when it came to the TMS. Hopefully the AC will work out better but they need to drill to find out.  

Perhaps EOG has concluded the same thing Aubrey McClendon did about the Marcellus Shale. Wells are unnecessary if a play can be flipped right.

I believe you are correct.  There is money to be made in flip leases.

EOG Presentations state 9500 undrilled locations with proven value as of yesterday.  None stated to be in the La. Austin Chalk.  No buyers disclosed for their La. acreage position.  Obvious emphasis will be elsewhere.

“We continue to examine the Austin Chalk's prospectivity in our South Texas Eagle Ford acreage. The target is less consistent than the Eagle Ford shale. However, where it is prospective, it consistently delivers prolific results. Earlier this year, one of our first successful Austin Chalk wells, the Kilimanjaro, reached 1 million barrels of oil in less than two years, averaging more than 1,500 barrels of oil per day for 626 days. Furthermore, the play is in an advantageous location with well-developed infrastructure close to the Gulf Coast and benefits from our extensive seismic and log control collected through our Eagle Ford development program.”

https://seekingalpha.com/amp/article/4194438-eog-resources-eog-q2-2...

EOG’s business model is conservative when compared to some of the high-flying names of the past.  Given their low cost position in Central LA AC play, I would think that a one and done type CHK play from the mid-1990 is not what EOG has in mind.  But, stranger things have happened in LA!!!

Although the quote concerns the TX AC, I think that it applies to the LA AC and helps us to understand what is going on currently that is difficult to see.  I believe that the operative phrase is "sweet spots".

"The target is less consistent than the Eagle Ford shale. However, where it is prospective, it consistently delivers prolific results."

At least I can give EOG credit for the last mineral land grab push. Sure would like to see more development though.

Well, Aubrey sure was correct. Until he was wrong. He was the greatest, slickest con man ever in the oil and gas business. He should be resting in The Smithsonian instead of at peace.

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