Did EOG just find the Holy Grail?

Holy Grail being low decline, low cost and high return production.

EOG, who is by far the #1 pure play shale E&P in NA and the King of the EFS (only rivaled by COP possibly), made this stunning announcement in their Qtrly earnings conf call:

EOG's exec mgmt publicly discussed development of the first successful enhanced oil recovery [EOR] technology in U.S. horizontal shale (after 3 years of effort). Noted that they are still "piloting" and heading for a full 32 well pad test. Also noted that their process to produce incremental oil out of the EFS may not apply to other Basins as EOG's acreage in EFS is situated in the optimal thermal maturity zone and is dependent on the primary drilling technique, spacing and design - so not a blanket application.

The economics are spectacular. The EOR technique is not capital intensive (~$1M/well) as there is no incremental drilling required and has low operating costs as the process makes use of produced gas. EOG internal modeling models indicate that this process will increase recovery by 30% to 70% (so incremental potential reserves, not increased production), with potential finding costs of $6.00 per barrel or below or less.

Whether or not SEA can have this potential I don't know - but $6/Bbl of finding costs (FUSA)

Good luck