Synopsis

Enhanced completions, defined as completions using more than 8 million pounds of proppant, now account for half of Bakken wells. With that said, operators have slowed the pace of completions significantly in the region as the industry awaits higher oil prices. Slickwater has consolidated last quarter’s gains in marketshare, according to service providers participating in the Hart Energy survey. For the second quarter in a row, service providers report job requests are split nearly evenly between slickwater, the new kid on the block, and traditional crosslink gel. At the same time, service providers report that sliding sleeves continue to lose market share to plug and perf while ceramics are losing share to coarse sand. Otherwise, survey respondents reported roughly half of wells are zipper fracked during completion with the average number of wells per pad at five, a drop of one versus the first-quarter 2015 survey. Average stage spacing of 230 feet is basically unchanged versus the previous survey. However, operators are using an average 8 million pounds of proppant per well, down significantly from the 12 million pounds reported last quarter. This may reflect the growing backlog of drilled but uncompleted wells. Watch for the next Bakken downhole completions report in September 2015.

Part I. – Survey Findings

Among Survey Participants:

  • Crosslink And Slickwater Fracks Equally Common
    [See Question 1 on Statistical Review]
    ​Four of eight respondents reported slickwater is used equally with crosslink in the Bakken. Three operators are now using slickwater predominately in the play. One provider is still using mainly crosslink.
    • Top-tier Service Provider: “We get almost equal requests for slickwater or crosslink. Each operator has specific preferences.”
  • No Specific Method Changes In Near-Term
    [See Question 2 on Statistical Review]
    ​No specific change in downhole completion methods are expected in the near term. Current methodology seems to be changing very little, though there is a general slowdown in completions.
    • Mid Tier Producer: “We have seen few changes in methods. Price concessions and delays have been money savings focus.”
  • Little Change In Spacing Between Frack Stages
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing continues to range between 200 feet to 250 feet in the play for an average 229 feet for plug and perf and 100-125-ft. for coil/sleeve fracks. The average laterals reported ranged between 8,000 feet and 11,000 feet.
    • Mid-Tier Service Provider: “Spacing has stayed about the same. Sand volumes are seeing some reduction.”
  • Plug and Perf Remains 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, two respondents specialize in the coil fracks with sleeve technology.
    • Mid-Tier Service Provider: “Plug and perf is most common, but some use is still made of sliding sleeve by a few operators.”
  • Downhole Tools, Service Providers Oversupplied
    [See Question 5a and 5b on Statistical Review]
    ​Seven respondents reported that the number of downhole tool providers is oversupplied within the region. One respondent believes supply for downhole work is sufficient in the area. However, as layoffs take hold, the area could swing to being undersupplied if the price of oil recovers.
    • Mid-Tier Service Provider: “With demand for completions so low, there is definitely an oversupply of service providers.”
  • Multi-Well Pads Averaging ~5 Wells Per Pad
    [See Question 6 on Statistical Review]
    Average number of wells per pad reported is about five. This number is lower than previously reported, but within a normal range and does not necessarily indicate a trend.
  • Zipper Fracks Stable At ~54% Of Completions
    [See Question 7 on Statistical Review]
    The percentage of zipper frack completions among respondents now at approximately 54%; the remaining 46% 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 ~8 million pounds per well among respondents with 20/40, 30/50, 40/70, and 100 mesh sand most common. Nearly 97% of proppant is natural sand currently; the remaining 3% is ceramics. This drop in ceramic usage is down from last report as operators attempt to save on costs in the cheap oil environment.
  • Enhanced Completions Rate Down to 56%
    [See Question 9a and 9b on Statistical Review]
    Enhanced completions are now estimated at an average of 56% of all completions among respondents. Enhanced completions would be defined as those fracks where 8 million to 15 million pounds of sand were used per horizontal lateral.

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 seven managers or sales engineers with well stimulation companies, and one completions equipment supplier. Interviews were conducted during late May 2015.

Part II. – Statistical Review

Downhole Completions

[Bakken Shale]

Total Respondents = 8

[Service Providers = 7, Suppliers = 1]

1. What common practices are used in your area for completions?
Slickwater/Crosslink equally: 4
Slickwater almost exclusively: 3
Crosslink predominately: 1

2. Do you see that changing over the next three to six 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: 2*
200-300 ft. spacing: 1
200-250 ft. spacing: 3
250-ft. spacing: 2
Average: ~235 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?
Dissolving plugs: 1
Airlock buoyancy system: 1
New gel system: 1
Coil fracks: 2
Nothing new: 3

4. What fracking technique is most common in your area?
Plug and Perf: 6
Sliding Sleeve: 2

5a. Would you characterize the supply of downhole tools in your area as excessive, sufficient or insufficient to meet early 2015 demand?
Sufficient: 1
Excessive: 7

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: 5
5 wells: 2
3 wells: 1
Average ~5 wells per pad


7. What percentage of fracks drilled from pads are zipper fracks vs. individual fracks?
Zipper Frack Solo Frack # Responses
75% 25% 3
90% 10% 1
50% 50% 4
Avg 54% 46% 8

8a. How much proppant (in lbs) are you using per well?
3-10 million lbs: 4*
10-15 million lbs: 4
Average per well: ~8 million lbs sand
*This is a sharp decline and may show a trend away from enhanced completions in a low oil price environment.

8b. On a percentage basis, how much proppant in your area is used by type?
Sand* only: 97%
Ceramics: 3%
*Respondents reported 20/40, 30/50, 40/70 and 100 mesh sand most common

9a. Looking at the entirety of completions in your area, how many would you estimate to be "enhanced completions"?
Among all respondents
Enhanced completions now comprise 56% of all wells completed

9b. How would you describe an enhanced completions in your area?
Respondent answers ranged from 8 million to 15 million pounds of sand per lateral

End Statistical Survey