Synopsis

Inflection point for Bakken downhole completions? Operators are cutting back on proppant loading, primarily as a cost saving measure.

Although late to the game, Bakken operators began adopting high volume, high proppant slickwater frack treatments in 2014 before the market turned down. The technique showed substantial uplift in production, particularly form areas just outside the core.

When the market turned south, operators abandoned high cost ceramics in favor of larger volumes of low cost sand.

Now operators are ratcheting back sand volumes to further shave costs. Average sand per well is 5 million pounds, down from 6 million pounds 90 days ago.

Bakken operators recently returned to delaying completions as the pace of batch drilling and completions has also slowed.

Zipper frack completions dropped to 41% of wells in this report. This is down from more than 60% 90 days ago as the backlog of drilled but uncompleted wells rises above 1,000 in the play.

Watch for the next Bakken downhole completions report in February 2016.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Dominates Completions
    [See Question 1 on Statistical Review]
    All respondents reported that slickwater is most common in the Bakken region, similar to findings in earlier reports, though many completions are being delayed in today’s low oil price environment.
  • No Major Changes Expected In Near-Term
    [See Question 2 on Statistical Review]
    ​All respondents expect few or no changes in downhole completions in the near term. However, a few respondents reported that sand volumes are dropping as some operators continue reducing costs for completions.
    • Mid-Tier Provider: “Operators are now adjusting sand volumes in some cases to continue to drop costs of completions.”
  • Spacing Between Frack Stages Averages 263 Feet, 3-4 Perf Sets Common
    [See Questions 3a, 3b, 3c, 9b on Statistical Review]
    ​Spacing ranges between 250- to 300 feet in the play and averages about 263 feet, down slightly from the 303 feet reported in August. In addition, three to four perf sets per stage are common, same as six months ago.
    • Mid-Tier Operator: “We see most clients using 250- to 300-foot spacing and 250,000 to 300,000 pounds of sand per stage. We typically see three or four perf sets in each stage.”
  • Plug and Perf Most Common Fracking Technique
    [See Question 4 on Statistical Review]
    ​All respondents reported that plug and perf completions are the standard fracking technique in the region now. One service provider continues to use a coil frack and sliding sleeves for a few Bakken clients.
    • Mid-Tier Service Provider: “Plug and perf slickwater fracks with large sand volumes are the most common currently.”
  • Downhole Tools, Service Providers Sufficient
    [See Question 5a and 5b on Statistical Review]
    ​Six of eight respondents reported that the number of downhole tool providers is sufficient. Two others believe there is still excessive supply. No new downhole tools or methods are reported in the play.
    • Mid-Tier Operator: “There have been no new tools introduced in awhile. Most continue the same methods, but at a much slower pace.”
  • Multi-Well Pads Average Five Wells Per Pad
    [See Question 6 on Statistical Review]
    ​Average number of regional wells reported per pad is about five. Respondents gave a range of three to six well pads in the region.
    • Mid-Tier Operator: “Even though most operators use bigger well pads, we are seeing less ‘batch’ drilling and completing. With the slow pace, we do see more solo completions now.”
  • Zipper Fracks Account For 41% Of Completions; Solo Fracks AccountFor Remainder
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 41%, down from 62% reported in the August report. The remaining 59% wells are fracked using the solo frack method on one well at a time and are most common due to the slower pace of drilling and completing in today’s market environment.
    • Mid-Tier Operator: “Zipper fracks are commonly used, but we see many solo completions now due to delayed fracks.”
  • 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 5 million pounds per well, down from about 6 million reported in August. Respondents reported 40/70, 30/50 and 100 mesh are most common. A total of 98% of proppant used is natural sand. Ceramics are still used by some operators, but not as often.
  • First Decline In Enhanced Completions Reported
    [See Question 9a and 9b on Statistical Review]
    All respondents reported most horizontal completions involve enhanced methods currently, but some operators have reduced the sand volumes to cut costs. The number of enhanced completions among respondents has fallen to 82%, down from 100% in the August report.

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 Bakken region. Participants include six sales professionals with well service companies and two production/completions engineers for E&P companies. Interviews were conducted during the second week of November 2015.

Part II. – Statistical Review

Downhole Completions

[Bakken]

Total Respondents = 8

[Fracking service providers = 6, Operators = 2]

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

Slickwater:

8


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:

8


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

250-300-foot spacing:

7

100-150-foot spacing:

1

Average spacing:

~263-feet


3c. How are you fine tuning your frack program downhole?

Large sand volume slickwater:

7

Coil frack sliding sleeve designed for every well:

1


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

Plug and perf:

8*

*One service provider reported sliding sleeve coil frack is still common.


5a. Would you characterize the supply of downhole tools in your area as excessive, sufficient or insufficient to meet late 2015 demand?

Sufficient:

6

Excessive:

2


5b. Are there any new downhole tools being tried in your area?

Nothing new:

8


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

3-6 wells:

4

4-6 wells:

4

Average:

~5 wells per pad


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

Zipper Frack

Solo Frack

# Responses

0%

100%

1

40%

60%

2

50%

50%

5

Average 41%

Average 59%

8


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

2-6 million pounds:

1

6-10 million pounds:

1

2-10 million pounds:

6

Average per well:

~5 million pounds


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

Average Among Respondents

Natural sand* only:

98%

Ceramic proppants:

2%

*Sand Usage: 40/70 most common; 100 mesh second most common; and 30/50 also common.


9a. Looking at the entirety of completions in your area, how many would you estimate to be "enhanced completions"? How would you best describe what an "enhanced completion" entails in your area?

All respondents said a majority of horizontal completions are enhanced by high sand volumes. However, recently some operators have reduced sand volumes to cut costs, in effect dropping percentage of enhanced completions to 82%, down from 100% in earlier reports.


9b. How many perf clusters are typical between stages? Is that more or less than six months ago?

All respondents said perf clusters are within the range of three to four sets per stage with none reporting an increase compared to six months ago.


End Statistical Survey