Focused on Eagle Ford
Crude Oil Window

Operationally focused on the Company’s Eagle Ford position located in three distinct regions across eleven Texas counties

Our primary operational focus is on our Eagle Ford position in eleven Texas counties, and our properties in the Eagle Ford are divided into three distinct regions: the Western Eagle Ford (comprised of Dimmit, La Salle and Frio Counties), Central Eagle Ford (comprised of Gonzales, Karnes, Fayette, Wilson, DeWitt and Lavaca Counties) and Eastern Eagle Ford (comprised of Brazos and Robertson Counties). As of December 31, 2020, we operated 97% of our Eagle Ford position and approximately 94% of our net acreage was held by production, or HBP.

Our Eagle Ford properties had proved reserves of 82.7 MMBOE, of which 74% was crude oil and NGLs and 37% was proved developed producing, or PDP. The PV-10 of our proved reserves as of December 31, 2020 was $723.8 million using $55/bbl WTI and $2.75/mcf HH pricing (49% PDP).

Third-party engineers have identified 240 gross (134 net) horizontal drilling locations on our acreage, of which 66% are expected to be drilled using lateral lengths of or greater than 7,000 feet and 31% are expected to be drilled using lateral lengths of or greater than 10,000 feet.

In the Eagle Ford, we are focused on geo-engineered completions where an integrated approach to drilling, completion, stimulation, and production of laterals is driving ongoing improvement in well results. We use vertical pilot logs to select geo-targets to optimize both reservoir and mechanical properties. We also apply an azimuthal gamma ray logging while drilling (LWD) tool to assist in geosteering, while multi-planar gamma ray data determines dip angle and direction in real time.

We run lateral thru-bit logs to total depth (TD) for detailed rock properties analysis, and mangrove stimulation design, which utilizes thru-bit log data for reservoir characterization and models key mechanical properties to optimize stimulation. We have also been increasingly using diverters, where an engineered fibrous pill is designed to create near-wellbore isolation that augments frac efficacy across all perforations, maximizing wellbore coverage. In addition, we have increasingly applied controlled flowbacks, where solids and fluids analysis are implemented to avoid negative impact of hydraulic fractures and assess success of completion strategies.

Finally, we are focused on longer is better. While the incremental cost of going from a 5,000 ft. lateral to 10,000 ft. is approximately 50%, the increase in net reserves, PV-10, and IRR is greater than 100%. Our inventory of more than 250 gross engineered locations have an average lateral length of approximately 8,000 ft. and climbing, with the first wells in 2018 ranging from 10,400 ft. at Hawkeye to 12,350 ft. at Horned Frog.