This interview validates everything I have been saying about Eagle Ford acreage, that it will see $30,000+ per acre and 30%+ royalty, sooner rather than later. Mark Papa clearly states in the video that EOG acreage is worth far more than the KNOC deal that was done with Anadarko. The simple truth is that the acreage EOG owns in the Eastern part of the Eagle Ford is in the overpressure oil window and the wells drilled there to date have daily production on average three times what is being produced from Maverick Basin wells. EOG acreage there is also a thicker formation, allowing for upper and lower EFS production zones. And don't forget, the KNOC deal is for Eagle Ford formation only on 80,000 acres and 16,000 acres in the deeper Pearsall dry gas formation. Landowner's should be keenly aware by now that much of the Eagle Ford acreage has multiple stacked pay targets. With the KNOC deal we are seeing other horizons being severed and sold. Landowner's should do likewise and negotiate Eagle Ford separately. To the best of my recollection, the majority, if not all of the previous high dollar deals done with foreign oil companies buying Eagle Ford acreage, the deals were for Eagle Ford formation only.
Anadarko, KNOC sign $1.55 billion Eagle Ford dealAnalysts pegged the value of the deal at about $13,000 to $16,000 per acre, representing some of the highest prices so far paid for acreage in that basin. The Eagle Ford is valued because it contains crude oil and natural gas that is rich in liquids that can be stripped out and sold at premium.