Synopsis

It’s the same song but a different verse when it comes to completion methodology in the greater Rocky Mountain market, according to Hart Energy’s Heard In The Field survey.

Slickwater has made significant inroads in the region’s completion portfolio—similar to the tune operators are singing nationwide. The improvement is thanks to lower prices for materials and services and consistent and repeatable performance.

Pricing for bulk commodity sand is back to 2010 levels for the most part, which is also encouraging operators to boost downhole bulk proppant volumes.

Average sand use per well regionally has increased to 9.5 million pounds in the current survey from about 8 million pounds at the beginning of the year.

That said, some operators in the greater Rockies market are still working with sliding sleeves because of greater precision in placing proppant. This is coupled with a larger resource harvest over the long term.

The decision depends on whether the goal is faster recovery in a net present value philosophy or greater recovery in a reserves enhancement approach.

Pad drilling remains the basis for development in the region. However, operators are only drilling one or two wells on pads designed to hold an average of four wells.

Zipper fracks, which are a proxy for batch completions, represent 51% of completions in the region. This is down from 74% at the beginning of the year.

The percentage is similar to other U.S. domestic markets as operators tactically navigate the current low commodity price event.

As in other regions, well rejuvenation in the form of refracture stimulation is frequently discussed. Although, well rejuvenation efforts accounted for less than 3% of activity for survey respondents.

Halliburton Co. (NYSE: HAL) has the lion’s share of the well stimulation market in the Denver-Julesburg (D-J) and the Greater Green River basins.

Though, Liberty Oilfield Services LLC and Calfrac Well Services Ltd. gained share in the second quarter vs. Halliburton in the D-J. Meanwhile, Schlumberger Ltd. (NYSE: SLB) gained share vs. Halliburton in the Greater Green River.

Watch for the next Heard In The Field report on the Greater Rockies downhole completions market in December.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Completions Most Common
    [See Question 1 on Statistical Review]
    ​Seven of eight respondents reported that slickwater is common in the region and one consultant prefers using gel.
    • Top-Tier Operator: “We routinely provide an 8,000-foot lateral slickwater completion with 8 million to 10 million pounds of sand in the area.”
  • No Changes Expected In Near-Term
    [See Question 2 on Statistical Review]
    ​All respondents expect few or no changes in the near term. Frack types and methods are staying the same on horizontal wells in the region. One consultant still prefers and recommends gel fracks with ceramic for best results, but gets far fewer clients in the current economic situation.
    • Mid-Tier Provider: “High sand volume slickwater fracks are the norm here now. Prices have gotten so low that I am surprised that operators aren’t continuing to increase sand volumes even further since the results justify it.”
  • Spacing Between Frack Stages Averages 221 Feet
    [See Questions 3a and 3b on Statistical Review]
    Spacing ranges between 200 feet to 250 feet in the region and averages about 221 feet. This is somewhat longer than 170 feet reported in the January report.
  • Plug And Perf Most Common Fracking Technique
    [See Question 4 on Statistical Review]
    ​Six of eight respondents reported that plug and perf completions are the standard fracking technique in the region. Two respondents reported using sliding sleeves with specific clients.
    • Mid-Tier Service Provider: “The plug and perf slickwater frack remains most common. Currently 50% of my business is for an operator who prefers the sliding sleeve and is getting good results.”
  • Remediation A Small Percentage Of Frack Work
    [See Question 5a and 5b on Statistical Review]
    ​Respondents reported that the actual implementation of refrack is limited. Halliburton is reported as the doing largest volume of refrack as well as remedial stimulation in the play.
    • Top-Tier Operator: “At Halliburton, we maintain top market share in both new wells and remediation. If there are problems to resolve, we have the best experience and equipment in the region.”
  • Multiwell Pads Averages Four Wells
    [See Question 6 on Statistical Review]
    ​Average number of wells per pad is about four with some respondents estimating the number to be between three and four.
    • Mid-Tier Service Provider: “Most wells here are on four well pads, even if all wells are not drilled immediately.”
  • Zipper Fracks Account For 51% Of Completions; Remainder Solo Fracks
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 51%, down from 74% reported in January. The remaining 49% wells are fracked using the solo frack on one well at a time. Zipper frack is expected to increase again once a recovery occurs because of its efficiency.
    • Top-Tier Operator: “During recovery we should see more zipper fracks. Efficiency savings will be 10%-15%.”
  • Sand Remains Most Common Proppant
    [See Question 8a and 8b on Statistical Review]
    Natural sand is reported as the most common proppant in the region and averages about 9.5 million pounds per well, up somewhat from 8 million pounds reported in January. A total of 94% of proppant used in the area is natural sand in the region. The remaining 6% is ceramics.
  • Three To Four Perf Sets Per Stage Most Common
    [See Question 9a and 9b on Statistical Review]
    ​All eight respondents reported using three to four perf sets per stage in enhanced horizontal completions with little expectation of change. One provider explained that he now uses four perf sets in longer stages with diverters between perf sets with good results.
    • Mid-Tier Service Provider: “We had one operator ask us to use diverter drops to improve frack results on each perf set and results have been good. We now use it for several clients.”

End Survey Findings

Survey Demographics

H A R T E N E R G Y researchers completed interviews with eight industry participants in the downhole completions segment in the Rocky Mountain region outside of the Bakken. Participants include seven sales professionals with frack companies and one representative for an E&P company. Interviews were conducted in the second half of July.

Part II. – Statistical Review

Downhole Completions

[Other Rockies]

Total respondents = 8

[Fracking service providers = 7, Operators = 1]

1. What common practices are used in your area for completions?

Slickwater:

7

Crosslink gel:

1


2. Do you see that changing over the next three to six months?

No changes expected:

8


3a. Is spacing between stages closer now than a year ago?

Same:

7

Longer stages:

1


3b. What is the average distance between frack stages in your area?

200-foot spacing:

2

225-foot to 250-foot spacing:

5

No response:

1

Average:

~221 feet


4. What fracking technique is most common in your area?

Plug and perf:

6

Sliding sleeve:

2


5a. Looking at the number of total frack jobs in your area, what percentage are new fracks and what percentage are refracks?

New wells average:

97%

Remedial/refrack average:

3%


5b. Which fracking company in your area is doing the most new frack work?

Halliburton:

8


5c. What company is doing the most refracks in your area?

Halliburton:

8


6. What is the average number of wells being completed per pad in your area?

3-4 wells:

4

4 wells:

4

Average:

~4 wells per pad


7. What percentage of fracks drilled from pads are zipper fracks vs. individual fracks?

Zipper Frack

Solo Frack

# Responses

75%

25%

1

60%

40%

1

40%

60%

3

50%

50%

3

Average 51%

Average 49%

8


8a. How much proppant (in pounds) are you using per well?

6 million to 10 million:

4

11 million to 12 million:

4

Average per well:

~9.5 million pounds


8b. On a percentage basis, how much proppant in your area is used by type?

Average Among Respondents

Natural sand only:

94%

Ceramic:

6%


9a. How many perf clusters are typical between stages?

Range:

3-4 sets

Average:

4


9b. Is that more or less than six months ago?

Same:

8


End Statistical Survey