Synopsis

The Bakken completions market continues to slow because of lower crude oil prices, but is now split evenly between the use of massive slickwater fracks and crosslink gels for completion methodology. There is a modest increase in slickwater fracture stimulation as a percentage of the market since the last survey in November 2014. Operators continue to push lateral length incrementally, though spacing has not changed materially. Self-dissolving plugs are gaining market share for sliding sleeve completions as operators seek ways to reduce costs. Survey responsents cite an average of six wells per pad, little changed from the last survey, and 12 million pounds of proppant per lateral, which is down slightly from the last report but essentially unchanged. Watch for the next Bakken downhole report in May 2015.

Part I. – Survey Findings

Among Survey Participants:

  • Crosslink and Slickwater Fracks Equally Common
    [See Question 1 on Statistical Review]
    ​Five of eight respondents reported slickwater is used equally with crosslink gel in the Bakken. Three operators are now using slickwater predominately in the play. This may show a move to less expensive fracks by some operators.
    • Mid-tier Service Provider: “We get almost equal demand for slickwater as we do for crosslink. It depends totally upon the operator’s completions consultant preference.”
  • No Specific Method Changes in Near-Term
    [See Question 2 on Statistical Review]
    ​No specific change in downhole completion methods expected in the near term. Current methodology seems to be changing very little, though there is a general slowdown in completions.
    • Top Tier Producer: “We have not seen many changes in methods. Operators are simply slowing down the number of completions period to cut the budget.”
  • Little Change in Spacing Between Frack Stages
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing continues to range between 200-ft. to 250-ft. in the play for an average 229-ft. The average laterals reported ranged between 10,000-ft. and 12,000-ft.
    • Mid-Tier Service Provider: “We aren’t seeing many changes in the spacing as much as we are seeing slightly longer average lateral lengths. Spacing has fairly well stabilized at around 250-ft.”
  • Plug and Perf Most Common Fracking Technique
    [See Question 4 on Statistical Review]
    ​Nearly all respondents reported that Plug and Perf completions are the standard fracking technique in the Bakken now. However, one respondent specializes in coil fracks with sleeve technology.
    • Mid-Tier Service Provider: “We are using mostly plug and perf completions with our clients, but there is some use of the new dissolving plugs to save money on drill outs.”
  • Downhole Tools, Service Providers Sufficient
    [See Question 5a and 5b on Statistical Review]
    ​Six respondents reported that the number of downhole tool providers is sufficient within the region. Two respondents believe supply for downhole work is now excessive in the area, however.
    • Mid-Tier Service Provider: “Plug and perf still dominates as the method of choice. However, dissolving plugs are catching on because they save money on drill outs.”
  • Multi-well Pads Averaging ~6 Wells per Pad
    [See Question 6 on Statistical Review]
    Average number of wells per pad reported is ~6. This number is higher than previously reported, but within a normal range and does not necessarily indicate a trend.
  • Zipper Fracks Stable At ~56% of Completions
    [See Question 7 on Statistical Review]
    The percentage of zipper frack completions among respondents now at approximately 56%; the remaining 44% of completions are stack or solo fracks.
  • Sand Remains Most Common Proppant; Large Volumes Continue
    [See Question 8a and 8b on Statistical Review]
    Sand is the most common proppant in the region and averages ~12 million pounds per well among respondents with 20/40, 30/50, 40/70, and 100 mesh sand most common. Nearly 95% of proppant is natural sand currently; the remaining 5% is ceramics. This drop in ceramic usage from last report may reflect an attempt to save on costs in this cheap oil environment.

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 service segment in the Bakken region. Participants include six managers or sales engineers with well stimulation companies, and two oil and gas production company representatives. Interviews were conducted during late February 2015.

Part II. – Statistical Review

Downhole Completions

[Bakken Shale]

Total Respondents = 8
[Service Providers = 6, Operators = 2]

1. What common practices are used in your area for completions?
Slickwater/Crosslink equally: 5
Slickwater almost exclusively: 3

2. Do you see that changing over the next 3 to 6 months?
No specific changes expected: 8

3a. Is spacing between stages closer now than a year ago?
Same spacing: 8

3b. What is the average distance between frack stages in your area?
100-150 ft. spacing: 1*
200-ft. spacing: 1
200-250 ft. spacing: 4
250-ft. spacing: 2
Average: ~229 ft.
*This spacing not included in the average since it is for coil frack only

3c. How are you fine-tuning your frack program downhole?
Heavy loading of natural sand: 5
Coil fracks: 1
No response: 2

4. What fracking technique is most common in your area?
Plug and Perf: 7
Sliding Sleeve: 1

5a. Would you characterize the supply of downhole tools in your area as excessive, sufficient or insufficient to meet early 2015 demand?
Sufficient: 6
Excessive: 2

5b. Are there any new downhole tools being tried in your area?
Dissolving plugs in use: 1
Sleeves for coil frack: 1
Nothing new: 6

6. What is the average number of wells being completed per pad in your area?
5-6 wells: 5
6 wells: 1
5 wells: 1
4 wells: 1
Average ~6 wells per pad

7. What percentage of fracks drilled from pads are zipper fracks vs. individual fracks?
Zipper Frack Solo Frack # Responses
75% 25% 2
90% 10% 1
60% 40% 1
0% 100% 1
50% 50% 3
Avg 56% 44% 8

8a. How much proppant (in lbs.) are you using per well?
10-20 million lbs: 2
10-15 million lbs: 2
14-16 million lbs: 1
12-16 million lbs: 2
15 million pounds: 1
Average per well: ~12 million lbs. sand

8b. On a percentage basis, how much proppant in your area is used by type?
Sand* only: 95%
Ceramics: 5%
*Respondents reported 20/40, 30/50, 40/70 and 100 mesh sand most common