mro q2 comment

"EAGLE FORD: Marathon Oil's average net production in the Eagle Ford shale grew approximately 11 percent from the first quarter of 2013 to approximately 80,000 boed in the second quarter. Approximately 62 percent of second quarter net production was crude oil/condensate, 17 percent was natural gas liquids (NGLs) and 21 percent was natural gas. During the second quarter, Marathon Oil reached total depth on 82 gross Company operated wells and brought 70 gross operated wells to sales, compared to 76 and 68 gross wells respectively in the first quarter. With approximately 85 percent pad drilling, which continues to improve efficiencies and reduce costs, the Company's second quarter spud-to-total depth averaged 12 days and 18 days spud-to-spud.

The Company continues to evaluate the potential of downspacing to 40- and 60-acre units, with results of the downspacing pilots expected to be released in December. It also continues to evaluate the Austin Chalk and Pearsall formations across its acreage position. To date the Company has completed four Austin Chalk wells with average lateral length of 4,075 feet yielding average 24-hour initial production (IP) rates of 980 gross boed (485 bbld of crude oil/condensate, 220 bbld of NGLs and 1.65 million cubic feet per day of natural gas) on chokes ranging from 12/64-inch to 16/64-inch. Early Austin Chalk production results suggest the mix of crude oil/condensate, NGLs and natural gas to be similar to Eagle Ford condensate wells. Also in the second quarter one Pearsall well was completed with a 24-hour IP rate of 580 gross boed on a maximum choke of 18/64-inch."