EOG Resources Inc (EOG): A Texas-Sized Gusher From the Eagle Ford

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For perspective, this one EOG Resources Inc (NYSE:EOG) well has the potential to produce 10 times the oil of a typical SandRidge Energy Inc. (NYSE:SD) well this year, which means that its economics will truly be remarkable. However, given the massive projected decline rate of between 75%-90%, the well’s gusher won’t last all that long, making it really just an interesting side note for a company expected to drill about 425 wells in the Eagle Ford this year. That’s not to say that this well isn’t important; it will be really interesting to see if EOG Resources Inc (NYSE:EOG) has stumbled upon a better way to drill its Eagle Ford wells, which could really boost its output, estimated ultimate recoveries, and, best of all, returns. 

The article A Texas-Sized Gusher From the Eagle Ford originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of SandRidge Energy (NYSE:SD). Matt DiLallo has the following options: short September 2013 $5 puts on SandRidge Energy. The Motley Fool has no position in any of the stocks mentioned.

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