EOG Resources is the furthest along the learning curve with the largest position in the best play.  CEO Mark Papa loves to talk about the Eagle Ford on their conference calls.  Too bad EOG’s stock is richly priced:

“Our press release again contains multiple new well results with IPs for individual wells in the 2,000 to 3,000 barrel oil per day range…

I’ll now discuss 6 key points regarding the Eagle Ford. First, last quarter, we advised you that 65 to 90 acre downspacing was successful, and we’d increased the potential net recoverable reserve estimate from 900 million to 1.6 billion Boes.

Now that we have an additional 90 days of production history, we’re even more comfortable with these downspacing conclusions. We’re now testing space are tighting — tighter than the current 65 to 90 acres, i.e. 40 acres, to determine if further densify will be viable to increase recovery factor and we’ll likely have some results by year end.

Second, we continue to see an improvement in well performance from recent wells compared to wells completed just a year ago. This is likely due to better fracs and better placement of our laterals. This is occurring across essentially all our acreage. We’ve certainly seen this in our more prolific acreage where a year ago, we were highlighting wells with 1,500 barrel oil per day IP rates. And today, in those same areas, the IPs are 2,500 to 3,000 barrels of oil per day. These 2,500 to 3,000 barrel oil per day rates are holding up and have averaged 30-day rates of 1,500 barrel oil per day. We’re also making these type of improvements in areas with lesser quality rock.

With the success in downspacing, we have identified at least 3,200 additional locations to drill. Based on the 300 net wells we plan to drill this year, this gives us an 11-year inventory. The reason we’re not accelerating the drilling of this unusually large well inventory is the technological improvements we’re making. If we’re making better wells than we were a year ago, who’s to say we may not make even better wells a year from now? So why rush to drill wells that may not be technically optimum? We’re closely focused on balancing the present value of this asset versus this technical well improvement. And you’ll hear more about this in subsequent quarters…

And sixth. In early 2013, we expect to commence a dry gas injection pilot to determine whether this enhanced oil recovery technique will improve our current estimated 6% recovery factor. We expect to have preliminary results in late 2013.”

Source:  Seeking Alpha