ConocoPhillips says it’s getting better-than-expected performance in the Eagle Ford Shale, where it’s one of the biggest producers.
In the second quarter, the company was making an average of 121,000 barrels of oil equivalent per day in the field, about double ConocoPhillps performance during the same quarter last year.
Matthew Fox, executive vice president of exploration and production, said during a call with analysts that the company considers its position in the Eagle Ford as “best-in-class.”
And it got into the field early at bargain prices-per-acre.
“We are one of the top producers overall and we are producing higher oil volumes per well; more than 50 percent higher than the competitor average, so clearly we’d identified the sweet spot when we established our position for only $300 an acre,” Fox said.
ConocoPhillips is transitioning to drilling multiple wells per pad now that much of its acreage is held by production. (Operators must drill within a certain time period to hold their acreage or they risk losing the right to drill.)
ConocoPhillips is making more black oil than condensate, or natural gas liquids.
It’s also operating in other unconventional oil fields, including the Permian Basin in West Texas and the Bakken in North Dakota.
Jeffrey Sheets, CFO and executive vice president of finance, said the combined production from the three fields was 203,000 barrels per day, up 47 percent from the same quarter last year. “These assets made up less than 9 percent of our total company production a year ago and today these assets comprise 13 percent of our total company production and we expect they will continue to grow,” he said.
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