EOG Quietly Moves Back Into Appalachia
Can the Utica oil window be cracked?
With oil prices around $90, it may be the time for a second look.
EOG seems to be moving in to give it a try. Operating west of most operators, EOG
recently drilled a new lateral in Rose Twp, Carroll Co., Ohio. Rumors over the last year mention they have been leasing a position across the liquids-rich Utica window in eastern Ohio.
In an attempt to replicate the success in the Eagle Ford play in Texas, many operators drilled across the oil window early in Utica exploration. Since the large operators, including BP, EQT, Chesapeake, Anadarko, and Devon, left the region, little activity has occurred. Many of the test laterals were plugged or sold to local independent operators.
Oil appears to be abundant within the reservoir, but producing economic quantities has been a struggle. It is exciting to see another company exploring within Appalachia.