EOG Resources

Capex

EOG's 2008 planned exploration and development capital program is approximately $4.1 billion, which excludes acquisitions, gathering systems, processing plant and other expenditures of approximately $280 million. Considering the anticipated proceeds from the previously announced divestiture of its Appalachian shallow natural gas assets, EOG is targeting net debt at year-end 2008 to be relatively flat with December 31, 2007.

Future Plans

Consistent with EOG's strategy of adding new reserves at high rates of return through organic growth, the company plans to continue expansion of its North American drilling program.  The company expects significant production gains from two high rate of return plays, the Fort Worth Barnett Shale and North Dakota Bakken.

EOG has increased its total crude oil and condensate production growth target from the previously stated 33 percent to 36 percent, primarily as a result of expanded drilling operations in the North Dakota Bakken. Natural gas liquids volumes are expected to rise by 40 percent over 2007 as EOG increases drilling activity in the western extension counties of the Fort Worth Barnett Shale and processes more of its rich natural gas. 

Production

2007 Production (MMcfed)

U.S.A. 1,184
Canada 245
Trinidad 276
U.K. 24
Total 1,729

Production in 2006 was 1,561 MMcfepd - 86 percent was natural gas and 14 percent was crude oil and natural gas liquids. A total of 79 percent of EOG's production came from the United States and Canada where EOG has a demonstrated track record of production growth. For the full year 2006, total company production increased 9 percent on a daily basis as compared to 2005. In the United States natural gas daily production increased 14 percent.

Reserves

At December 31, 2007, total company reserves were approximately 7.7 trillion cubic feet equivalent, an increase of 944 billion cubic feet equivalent (Bcfe), or 14 percent higher than year-end 2006. In 2007:

Total reserve replacement from all sources - the ratio of net reserve additions from drilling, acquisitions, revisions and dispositions to total production - was 248 percent at a total reserve replacement cost of $2.24 per thousand cubic feet equivalent (Mcfe), excluding gathering systems, processing plant and other expenditures.

From drilling alone, EOG added 1,534 Bcfe of reserves with drilling capital expenditures of $3,548 million, excluding gathering systems, processing plant and other expenditures, at a reserve replacement cost of $2.31 per Mcfe prior to revisions, replacing 241 percent of production.

In the United States, EOG added 1,580 Bcfe of reserves from drilling and acquisitions, net of revisions with capital expenditures of $3,010 million, excluding gathering systems, processing plant and other expenditures, at a reserve replacement cost of $1.90 per Mcfe.

For the 20th consecutive year, internal reserve estimates were within 5 percent of those prepared by the independent reserve engineering firm of DeGolyer and MacNaughton. The firm prepared a complete independent engineering analysis of properties containing 79 percent of EOG's proved reserves on a Bcfe basis.

Reserves at 2007 year-end (Bcfe)

U.S.A. 5,180
Canada 1,282
Trinidad 1,270
U.K. 13
Total 7,745

At December 31, 2006, EOG's estimated net proved natural gas reserves were 6,095 Bcf and estimated net proved crude oil, condensate and natural gas liquids reserves were 118 million barrels. Approximately 60 percent of EOG's reserves on a natural gas equivalent basis were located in the United States, 20 percent in Canada, 20 percent in Trinidad and less than 1 percent in the United Kingdom North Sea. .

Who's Who

Offices