A recent analysis of EOG Resources' (NYSE : EOG) EUR (estimated ultimate recovery) expectations in the Eagle Ford shale by Jefferies & Co. Inc. shows that the results are “reasonable” and that play is “quite robust from a return perspective.” 

Read about the largest producers in the Eagle Ford as reported in the August 2010 issue of OGFJ.

The August 27 report by Jefferies noted that EOG’s stock has been under pressure recently, “partly due to concerns its Eagle Ford wells are underperforming.” The report notes that while the company’s early Eagle Ford shale wells have struggled, “leading edge results show significant improvement,” and that “tail” production is also to be considered.

“Tail production will determine ultimate reserves, but its impact on returns are much more muted. In fact, Eagle Ford oil wells appear to have strong enough IRR that a material degradation in tail production can be tolerated.”

Source: Jefferies & Co.