Enverus: Eagle Ford is “gift that keeps on giving” despite denser development
(WO) — Enverus Intelligence Research (EIR) has recently released a report identifying the high-grade locations in the Eagle Ford where recoveries remain high despite denser development.
As acquisition deals continue to mount in West Texas’ Permian basin – $144 billion in the fourth quarter of 2023 – interest is turning to basins like the Eagle Ford, Haynesville, Barnett and others.
"The core of the Eagle Ford is the gift that keeps giving for operators with the best acreage,” said Dani von Bassenheim, report author and a research associate at EIR.
“While this area hosts the densest development in the play, recent tests demonstrate very economic redevelopment locations still exist even at tighter spacing than we previously modeled,” said von Bassenheim.
Key takeaways from the report:
- Despite significant development to date, oil and gas companies drilling in the Eagle Ford's Core can still achieve sub-$45/bbl breakeven at 20 or more wells per section.
- Operators generate greater returns by prioritizing dense development in the Core area, which includes Karnes, Dewitt and Gonzales counties, over pivoting to less-developed, lower-quality rock.