OREANDA-NEWS. EOG Resources expanded its inventory of crude oil plays with successful drilling results in the Second Bone Spring Sand, which underlies its extensive Leonard Shale acreage position in Lea and Eddy counties, New Mexico. Through the application of advanced completion techniques, EOG realized robust results from two recent wells.

The Mars 3 State #1H, in which EOG has 67 percent working interest, came online at 1,270 barrels of oil per day (Bopd) with 150 barrels per day (Bpd) of NGLs and 1.1 million cubic feet per day (MMcfd) of natural gas. EOG has 100 percent working interest in the Jolly Roger 16 State #1H, which had an initial production rate of 1,450 Bopd with 210 Bpd of NGLs and 1.5 MMcfd of natural gas. While EOG estimates the play may be prospective over the majority of its 73,000 net Leonard acres, evaluation and confirmation is ongoing. Across the Second Bone Spring Sand, EOG's production mix is estimated to be approximately 70 percent crude oil with average estimated gross reserves per well of 500 thousand barrels of oil equivalent. Plans are to drill several more wells in the Second Bone Spring Sand in 2014 and increase activity in 2015.

In the West Texas and southeast New Mexico Leonard Shale play, EOG continues to enhance completions and test well spacing both within and across zones to maximize recovery of the hydrocarbons in place.

Over the last 12 months, EOG has systematically tightened spacing from 660 to 300 feet between wells to test production interference between Leonard 'A' wells. In Lea County, EOG completed a 500-foot spacing test by drilling the Dragon 36 State #05H, #06H, #07H and #08H. The wells were turned to production at initial rates of 1,100, 1,500, 1,270 and 1,360 Bopd, respectively. EOG has 100 percent working interest in these Leonard 'A' zone wells that had associated NGL production of 200, 195, 235 and 235 Bpd and 1.1, 1.1, 1.3 and 1.3 MMcfd of natural gas, respectively.

The most recent successful pilot in Loving County is a three-well pattern, also in the Leonard 'A' zone. The Gemini #1H, #2H and #3H were drilled 300 feet apart and turned to production at initial rates of 1,120, 1,530 and 1,290 Bopd, respectively. These Leonard 'A' zone wells, in which EOG has 48 percent, 100 percent and 48 percent working interest, respectively, had associated NGL production of 185, 220 and 200 Bpd and 1.0, 1.2 and 1.1 MMcfd of natural gas, respectively.

In addition, EOG has completed two strong Leonard 'B' zone wells, one drilled as part of a two-well pattern offsetting an 'A' zone well. In Lea County, the Falcon 25 Fed #2H began sales from the 'B' zone at 920 Bopd with 120 Bpd of NGLs and 660 thousand cubic feet per day (Mcfd) of natural gas. In Loving County, the Mercury State #2H also was completed in the 'B' zone, flowing 1,630 Bopd with 230 Bpd of NGLs and 1.3 MMcfd of natural gas. Offsetting the Mercury State #2H by 250 feet, the Mercury State #1H was completed in the 'A' zone at 1,700 Bopd with 360 Bpd of NGLs and 2.0 MMcfd of natural gas. EOG has 100 percent working interest in these three wells. Positive initial results from the Falcon 25 Fed #2H and the Mercury State #2H wells support additional downspacing tests of the Leonard 'B' zone.

Using early production results from the tightly spaced Gemini 'A' zone wells and the Mercury State wells drilled across zones 'A' and 'B', EOG is evaluating various downspacing options that could significantly increase the number of drilling locations across its Leonard acreage.

In Reeves County, Texas, EOG reported a number of successful wells from its 134,000 net acre position in the Delaware Basin Wolfcamp play. The State Apache 57 #1103H, #1104H, #1105H and #1107H were completed at initial rates ranging from 590 to 1,600 Bopd with 200 to 460 Bpd of NGLs and 1.3 to 3.0 MMcfd of natural gas. Also in Reeves County, the State Harrison Ranch 56 #302H and #303H began sales at 660 and 665 Bopd with 275 and 450 Bpd of NGLs and 1.8 and 2.9 MMcfd of natural gas, respectively. EOG has 100 percent working interest in these six wells. EOG continues to test various well spacing patterns and zones on its Delaware Basin Wolfcamp acreage.