HOUSTON, April 10 ConocoPhillips, the
largest independent oil company, is using the knowledge it
gained drilling in Texas' Eagle Ford rocks to fuel growth in
less-developed shale formations in North American and even
"The value associated with that learning curve has been
pretty tremendous," Conoco Chief Executive Ryan Lance told the
company's annual analyst meeting.
Conoco and many other companies are spending ever higher
amounts to coax more profitable and lower-risk crude oil and
natural gas liquids from shale and other rocks in North America.
This year, Houston-based Conoco said about one-third of its
$16.7 billion budget will be spent on so-called unconventional
resources in the Eagle Ford and Bakken shales with the aim of
raising that output more than 20 percent by 2017, the Houston
company told its annual analyst meeting.
Now, Conoco is taking the success it has seen drilling in
the Eagle Ford and exporting that to horizontal wells in Texas'
Permian Basin, Canada, Colorado and Poland.
"We were one of the first people to produce shales gas in
Poland," said Matt Fox, Conoco's head of exploration and
production. Of a planned well in Poland he said, "We're going to
drill it like an Eagle Ford well, we're going to frack it like
an Eagle Ford well."
Knowledge gained drilling in the Eagle Ford and Bakken is
enabling Conoco to increase efficiencies, lower costs and raise
the amount of oil and gas it expects to produce over the
lifetime of a well in other places, it said.
Conoco left its major targets unchanged, saying it still
sees overall production and margin growth of 3 percent to 5
percent through 2017.
This year, Conoco sees production of 1.51 to 1.55 million
barrels oil equivalent per day (boepd), with a year-end exit
rate of 1.6 million boepd.
Shares of Conoco fell $1.38 to $70.16, down 1.9 percent.
(Reporting by Anna Driver; Editing by Jonathan Oatis)