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EOG Resources says Texas well fire nearly out

By Kristen Hays

HOUSTON (Reuters) - EOG Resources Inc said on Friday that an Eagle Ford shale oil well fire that has burned since a blowout on Wednesday was nearly out as crews worked to cap it.

"EOG reports that the fire has substantially subsided at its Lavaca County well site and is close to being extinguished," the company said.

EOG said the company would issue a final update when the well is capped.

The fire followed a well rupture and explosion Wednesday evening at the EOG drilling operation about 134 miles west of Houston. No one was hurt.

EOG is the largest oil producer in the prolific Eagle Ford play with output of 173,000 net barrels of oil equivalent per day as of June 30, the company said in an investor presentation earlier this month.

Eagle Ford oil production rose to just above 621,000 barrels per day in June, according to the Texas Railroad Commission, 60.2 percent higher than a year earlier.

EOG also said in the presentation that the company has cut its number of drilling days per well to less than 12 days, which reduces cost such as daily rates paid for drilling rigs.

Nabors Industries, which owns the world's largest land-rig fleet, also owns the rig at the burning well. A Nabors official said that the company expected "pretty bad damage" to the rig from the explosion and fire.

EOG is investigating the cause of the incident.

(Reporting By Kristen Hays; Editing by Kenneth Barry)

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