Houston-based EOG Resources is doubling down in the company’s newly discovered Dorado field in the dry gas window of Webb County. This week Pecan Pipeline Company, a wholly owned subsidiary of EOG Resources had a pipeline permit approved for a 41 mile in Webb and Duval Counties located in Texas.
In 2020, EOG Resources announced its 21-trillion-cubic-feet Dorado discovery in the Austin Chalk of Webb County. “With a breakeven cost of less than $1.25 per Mcf, we believe this play represents the lowest cost supply of natural gas in the United States,” Boedeker said.
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The Austin Chalk formation has an estimated net resource potential of 9.5 Tcf with 530 net drilling locations identified, according to EOG. The well rates of return “are supported by low cash operating costs and proximity to several natural gas markets,” including options for liquefied natural gas and pipeline export pricing.
To minimize the environmental footprint, EOG said it would apply the latest water and emissions management technology to the development.
The combination of existing pipelines in the region and proximity to the Gulf Coast will help drive down costs for Dorado, Yacob said. With the company’s experience in the region helping to push costs down further, Dorado could be a solid money-maker, the executive said.
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