EOG Resources plans to sell 180,000 acres in US Shale

By Phaedra Friend Troy

In a conference call on Friday, major US independent producer EOG Resources (NYSE:EOG) revealed that it plans to sell 180,000 acres in the US Shale plays, reported Reuters.

An effort to generate funds to increase exploration, EOG is planning on selling 117,000 acres in the Eagle Ford Shale play of South Texas and 51,000 acres in the Haynesville Shale.

“We’re so long on acreage relative to what we can logically develop in a reasonable period of time,” EOG CEO Mark Papa told analysts in a conference call.

On Thursday, the company reported an increase in quarterly profits, earning nearly $60 million, adding that it planned to boost its 2010 capital expenditure program by $500 million by selling a greater amount of unconventional gas acreage than previously anticipated.

"We plan to sell certain non-core North American producing natural gas assets, as well as acreage in both natural gas and liquids plays, to execute the drilling and development of our suite of outstanding horizontal oil drilling opportunities," Papa said in the statement. “The cash generated will partially fund our capex program in 2010 and 2011.”

The anticipated buyer(s) were not revealed.

One of the largest independent oil and gas producers in the US, EOG holds some 8.9 trillion cubic feet of net proven natural gas reserves and some 313 million barrels of estimated net proved crude, condensate and natural gas liquids.

In addition to the Eagle Ford and Haynesville Shale plays, EOG holds acreage in the Marcellus, Leonard, Niobrara and Barnett Shale plays, as well as the Permian, Green River, Powder River, DJ and Uinta Basins onshore the US.

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