EOG Resources Inc. is looking to grow its inventory of premium drilling locations as it prepares to start testing at least six new oil and gas plays this year.

The Houston-based company already has identified about 10,500 premium undrilled locations, which equates to about 13 years of drilling at its current pace. Its premium-tailored strategy, rolled out in 2016, focuses on wells capable of earning at least 30% direct after-tax rate of return at $40 crude oil and $2.50 natural gas prices.

“We’re currently trying to add not only additional premium locations but really improve the quality of the locations,” Ezra Yacob, executive vice president of exploration and production for EOG, told analysts Feb. 28. He pointed out that the medium rate of return for the company’s current premium well inventory is 58% at $40 oil and $2.50 natural gas. “What we’re trying to do is increase that.”

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