EOG will increase activity in the Utica shale in Ohio, says company

Jeff Leitzell, chief operating officer of Houston-based EOG Resources, told the Barclays CEO Energy-Power Conference attendees in New York that the company expects to increase operations in the Utica Shale play in Ohio.

Leitzell stated that EOG Resources had doubled its Utica activity year-on-year. The company now operates on 445,000 acres at an average cost of $600 per acre.

Leitzell stated that "The Utica has a chance to be a fundamental play." If we have the success we expect, we will invest more money in Utica.

EOG also develops its Dorado natural-gas play in the Eagle Ford, in southeast Texas. In part, the company managed to achieve record low gas prices by deferring completions until the second half.

Leitzell explained that there will be periods of low prices followed by periods of high prices. You'll need to be able make margins and returns on gas throughout these periods.

(source: Reuters)