EOG Resources is pushing boundaries in Ohio's Utica oil play and now drilling on the Sable pad, also located in Noble County. This site features the 3.7-mile lateral currently under construction.
The company's first multi-well pads in the area Timberwolf and Xavier have each produced over 200,000 barrels of oil since their inception—Timberwolf in August and Xavier in October. A third site, the four-well White Rhino pad in Noble County, is also showing promising early results, according to Keith Trasko, EOG's Senior Vice President of Exploration and Production, who noted the wells are performing as expected in their initial weeks.
In terms of production, the three wells on the Xavier pad averaged nearly 450,000 BOE per well over their first 180 days. The older Timberwolf pad, with four wells, 350,000 BOE per well in the same timeframe. Both pads employ spacing between wells—800 feet at Xavier and 1,000 feet at Timberwolf.
EOG said that the Xavier and Timberwolf pads yield oil at rates comparable to wells in the Permian Basin when adjusted per foot of lateral. Specifically, the Xavier pad achieved an impressive initial production rate of 3,250 BOE/day from each well, with the first month's output consisting of 55% oil and 75% total liquids, including natural gas.
In comparison, Timberwolf's wells initially produced 2,150 BOE/day each, with 55% oil and 85% total liquids content. The performance of these wells not only meets but exceeds EOG's early projections and validates their spacing strategies, noted Ezra Yacob, EOG's Chairman and CEO.
Trasko and Yacob are confident in the Utica play's ability to compete robustly with America's leading oil fields, including the Permian, signaling a strong future for EOG in the region.
Utica Map
EOG Resources has a large operation in the Utica shale, which stretches over 140 miles and includes 435,000 acres. A significant portion of 135,000 acres lies in the southern part where their White Rhino drilling site is being cleaned up.
This southern section has a higher concentration of liquids compared to the northern and central parts of their leasehold. It also has better rock quality which is crucial for successful drilling.
EOG is expanding its activities in the Utica region, planning to drill 20 new wells this year from north to south.
Oil Window
Regarding full-field development, EOG is cautious, not rushing into extensive drilling plans. Yacob likened the current state of Ohio's Utica to where the Permian Basin was around 2012-2013, suggesting it's still somewhat uncharted territory. The company aims to apply lessons from its other projects to improve capital efficiency and avoid past mistakes like incorrect well spacing or unexpectedly high costs.
EOG has been actively drilling in the volatile-oil window of the Utica shale, which is bordered on the west by the less explored black-oil window. Before expanding their drilling in this western section, CEO Ezra Yacob mentioned that they need to gather more seismic data to understand the underground structures better.
Yacob explained that while the geological characteristics like thickness and pay don't vary much from east to west, the black-oil phase has lower thermal maturity. This means the oil is under less pressure, which slightly decreases well productivity but also lowers operational costs, keeping the overall economics competitive with other areas of the shale.
To support their operations in Ohio's Utica shale, EOG is planning to enhance local infrastructure, such as in-basin sand supplies and water reuse facilities.
Looking ahead, EOG has plans for a new drilling site Shadow, which will include seven wells in Carroll County, Ohio. This development follows their acquisition of significant leasehold interests in Ohio, where over 90% of their land is held by production, primarily due to legacy wells. In 2022, EOG expanded its holdings through a $500 million purchase from Encino Energy and Artex Energy Group.
