EOG Resources has commenced exploration drilling operations in Bahrain and the United Arab Emirates, with activities beginning in the second half of 2025. Testing for plays in both countries is scheduled to continue throughout 2026.

Drilling Progress and Initial Results

The company has drilled its first few wells in Bahrain and has begun completing them. In the UAE, EOG has drilled the first of a couple of wells, a process that went smoothly, with completion planned to begin shortly. Initial results from these exploration wells in both countries are expected in the second quarter of 2026.

Project Focus and Scale

The exploration in Bahrain is targeting an unconventional gas play, while the UAE operation is focused on an unconventional oil play within Onshore Block 3 in Abu Dhabi's Al Dhafra region. EOG has indicated that exploration activity will be higher in the UAE due to the relative size of the concessions. The UAE concession covers nearly 900,000 acres, though details on the size of the Bahrain asset have not been disclosed.

Confidence and Future Plans

Company executives expressed strong confidence in the potential of both plays, citing positive production results from prior horizontal wells in the areas. Following the exploration phases, EOG will evaluate whether to pursue longer-term production licenses.

Financial and Operational Context

For the fourth quarter of 2025, EOG reported revenue of $5.6 billion, a 1% year-on-year increase. Profits, however, fell 44% to $701 million, with earnings per share of $1.30 against analyst predictions of $2.33. Operationally, crude production grew 10% to 546,100 barrels per day, and total production rose 28% to nearly 1.4 million barrels of oil equivalent per day, bolstered by the acquisition of Encino Acquisition Partners.

Outlook and Strategic Opportunities

Given lower oil prices in 2025, EOG plans to keep its oil production flat in 2026. Leadership remains bullish on long-term prices due to declining global spare capacity and steady demand growth. Additionally, the company identified a potential strategic benefit from data centre development, particularly if facilities are built near its natural gas fields in South Texas and Ohio, which could boost regional demand for its assets in the Dorado field and the Utica shale.