EOG looking at 25% growth through 2006

Natural gas producer EOG Resources said Sept. 23 that at year-end 2006 it expects to have boosted daily production to 1.405 billion cubic feet of equivalent from 2003 levels of about 1.120 billion cubic feet of equivalent, a 25 percent increase.

The Houston-based independent said it expects to increase annual production 6.5 percent in 2004, 10 percent in 2005 and 7 percent in 2006. In North America alone, EOG is looking for a 6.5 percent production increase in 2004, a 5 percent increase in 2005 and a 3 percent increase in 2006.

However, most of the anticipated increase would come from EOG’s Trinidad operations, which should rise to nearly 300 million cubic feet per day from a current 150 million cubic feet per day, the company said. About 50 million cubic feet per day of incremental production is expected from the U.K. North Sea.

In Trinidad, EOG said it plans to drill up to eight wells over the next nine months, compared to its traditional two wells over the same period. EOG said the supply-demand equation has swung in favor of demand, largely because of planned LNG and chemical plants in the area.