EOG Resources is actively engaged in exploration drilling in Bahrain and the United Arab Emirates, with operations that commenced in the second half of 2025. Testing for plays in both countries is set to continue throughout 2026.

Exploration Progress and Initial Results

The company has drilled its first few wells in Bahrain and has begun completing them. In the UAE, it has drilled the first of a couple of wells, a process that proceeded smoothly, with completion operations slated to begin shortly. Initial results from these exploration wells in both nations are anticipated in the second quarter of 2026.

Project Focus and Scale

The exploration in Bahrain targets a gas-focused unconventional play, while the UAE activity is concentrated on an unconventional oil play in Onshore Block 3 within Abu Dhabi's Al Dhafra region. Exploration activity is expected to be higher in the UAE due to the relative size of the concessions. While the size of the Bahrain asset remains undisclosed, the UAE concession covers nearly 900,000 acres.

Corporate Outlook and Financial Context

Following the exploration phases, EOG will assess whether to pursue longer-term production licenses. The company expressed strong confidence in all the plays and excitement about the potential scale of the opportunities in both countries. This exploration activity follows deals revealed in February 2025 for Bahrain and May 2025 for the UAE.

Financially, EOG reported fourth-quarter 2025 revenue of $5.6 billion, a 1% year-on-year increase, but profits fell 44% to $701 million. Earnings per share were $1.30, below analyst predictions of $2.33. Production saw significant growth: crude output increased 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 integration of the $5.6 billion acquisition of Encino Acquisition Partners.

Future Strategy and Market View

In response to lower oil prices in 2025, EOG plans to maintain flat oil production in 2026. However, leadership remains bullish on long-term prices, citing declining global spare capacity and steady demand growth. Additionally, the company identified potential benefits from data centre development, particularly if facilities are built near its natural gas fields in regions like South Texas and Ohio, which could boost regional demand for gas from assets such as the Dorado field and the Utica shale.