EOG Jumps to 24-Year High on Eagle Ford Well ResultsJoe Carroll
EOG Resources Inc., the biggest owner of drilling leases in Texas’s Eagle Ford Shale, said five new wells in the formation were pumping the equivalent of more than 13,000 barrels of crude a day.
EOG jumped 1.2 percent to an intraday record of $199.50, the highest since shares trading began in October 1989. The stock was up 0.1 percent to $197.34 at 9:59 a.m. in New York trading.
The wells individually produced from 2,314 barrels to 3,071 barrels daily, according to drilling disclosures filed with the Texas Railroad Commission, the state agency overseeing energy production. The wells yielded between 91 percent and 97 percent oil, with the rest comprised of natural gas.
The quality of the crude discovered was on par with the light oil produced in Nigeria or off the Louisiana coast, based on the so-called gravity ratings listed in the filings.
The wells were completed between March 13 and March 21; the filings were lodged with the commission on March 27 and March 28.
EOG, based in Houston, controlled drilling rights on 639,000 acres in the Eagle Ford at the end of the third quarter, according to data compiled by Bloomberg.