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Some experts are calling it the most significant on-shore oil discovery in 40 years. Others are saying it could be the sixth largest oil field ever discovered in US history. In either event, when the play is mentioned among the likes of the biggest oil deposits ever discovered in America -- i.e. Prudhoe Bay in Alaska, Spraberry Trend in West Texas, the East Texas Oilfield, Kaparuk Field in Alaska, and the Bakken in North Dakota -- you know it has the potential to alter America’s energy landscape forever. It's the Eagle Ford Shale. And it has the potential to generate enormous riches for investors. Located just outside of Dallas, the Eagle Ford Shale stretches across a huge swath of Texas, shooting from the Giddings Field in Brazos and Grimes counties down into the Maverick Basin in Maverick County.For years it was thought to be an untouchable source rock , supplying hydrocarbons to the great Austin Chalk fields and giant East Texas Field. But now with rise of horizontal fracking technology, the play was unlocked and is now an emerging powerhouse. Even though the play is still in its infancy, companies are quickly proving that specific areas of the Eagle Ford hold massive potential. Just take a look at EOG Resources. EOG forecasts its Eagle Ford recovery potential at 900 million bbl of oil equivalent, net after royalty, based on initial drilling and early production results on a 505,000 net-acre position. Another company is Anadarko Petroleum plans to double its drilling activity in the Eagle Ford to more than 200 wells this year. The company said its estimated ultimate recoveries from existing Eagle Ford wells are the equivalent of more than 450,000 bbl of oil per well on average. This early success is largely due to the high liquids content of the production stream and reasonable drilling costs. Plus its carbonate content is 70% in some places and its clay content is very low which makes completions easier. In layman’s terms the shale fracs like a dream. That’s why the the Eagle Ford has exploded so quickly. In fact, the area experienced more than a 10-fold increase in the number of wells drilled in 2010 year-over-year. Drilling permits also grew a whopping 11-fold as well.
Indeed, the Eagle Ford is white-hot right now. And the smart money is already piling in like there’s no tomorrow. If you want to profit from this emerging oil powerhouse, sign-up to my monthly newsletter service here and I’ll send you my #1 Eagle Ford stock for the next 12 months.
Roger Gaines |
