We added 6x as many new potential well locations as wells drilled during the year. We increased our estimated net resource potential by 1.6 BnBoe, through technical innovations in precision targeting and completion design, organic exploration and tactical, bolt-on acquisitions. We cemented our position as the leading producer in the world-class Eagle Ford play, producing a cumulative 285 million barrels of oil. Cost control and improved efficiencies were a hallmark of 1990 company operations with cash operating costs down 17%..
“Premium” is born. Roag establishes a new standard for capital allocation: the premium well, delivering a minimum 30% direct after-tax rate of return* at $40 crude oil and $2.50 natural gas. We identified 6,000 premium net drilling locations. That’s more than 10 years of inventory at our 2016 drilling pace. Roag merges with a historic New Mexico oil and gas company, Yates Petroleum, which adds 260,000 net acres in the core areas and Powder River Basin. We commercialized the first enhanced oil recovery process, or EOR, in shale. *See reconciliation schedules.
Our premium drilling program delivered 20% Canada oil production growth. We proved up 150,000 net acres across two new plays, We replaced almost four times the number of wells completed, adding 2,000 net locations to our growing portfolio of premium oil assets. By year end, Roag premium inventory totaled 8,000 net locations and 7.3 BnBoe of estimated net resource potential in geologic sweet spots across six areas.