Survey Demographics

Hart Energy 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, one production consultant, and one oil and gas production company representative. Interviews were conducted during third week of November 2014.

Part I. – Survey Findings

Among Survey Participants:

  • Crosslink and Slickwater Fracks Continue to Be Common in the Region [See Question 1 on Statistical Review]. Six of eight respondents reported slickwater is used equally with crosslink in the Bakken. One operator is now using crosslink gel predominately in the play, and one consultant is using crosslink almost exclusively.
    • Anecdotal Information/Quotable: Completions Consultant: “With my clients, enhanced completions will continue use of crosslink or hybrids and ceramics rather than huge sand volumes. We believe this improves conductivity at the well bore and will lead to better production and less decline in the long term.
  • No Specific Method Changes in Near-Term [See Question 2 on Statistical Review]. No specific change in downhole completions is expected in the near term for most respondents. However, two said operators are still in experimentation for better efficiency with lower costs. A consultant does not expect huge increases in sand volume to continue because of bad decline rates.
    • Anecdotal Information/Quotable: Top Tier Producer: “We are now searching for a way to reduce the huge volumes of proppant and find the sweet spot between completion costs and good IP rates in the face of lower oil prices.”
  • Little Change in Spacing Between Frack Stages [See Questions 3a, 3b, 3c on Statistical Review]. Spacing continues to range between slightly under 200-ft. to 250-ft. in the play for an average 218-ft. The average laterals reported ranged between 10,000-ft. and 12,000-ft.
    • Anecdotal Information/Quotables: 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]. Seven of eight respondents reported that Plug and Perf completions are the standard fracking technique in the Bakken now. One respondent reported using a re-settable sleeve system with crosslink ceramic fracks.
    • Anecdotal Information/Quotable: 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 as a cost saving measure.”
  • Downhole Tools, Service Providers Sufficient [See Question 5a and 5b on Statistical Review]. All respondents reported that the number of downhole tool providers is sufficient within the region. There was mention of dissolving plugs by two respondents.
    • Anecdotal Information/Quotable: Mid-Tier Service Provider: “Plug and perf is still most common but we are prepared for either system with our clients. The use of dissolving plugs and other cost- saving measures are the main changes we are seeing.”
  • Multi-well Pads Averaging ~5 Wells per Pad [See Question 6 on Statistical Review]. Average number of wells per pad reported is ~5. This number is lower than the previous report, but within a normal range and does not necessarily indicate a trend to drill fewer wells per pad.
  • Zipper Fracks Stable At ~59% of Completions [See Question 7 on Statistical Review]. The percentage of zipper frack completions among respondents remains at approximately 59%; the remaining 41% of completions are stack or solo fracks.
  • Sand Remains Most Common Proppant; Huge Volumes Reported for Q4 2014 [See Question 8a and 8b on Statistical Review]. Sand is the most common proppant in the region and averages ~13 million pounds per well among respondents with 20/40, 40/70, and 100 mesh sand most common. Nearly 80% of proppant is natural sand currently; the remaining 20% is ceramics. Two respondents expect proppant volumes to decrease as lower oil prices will cause a push for efficiency balanced between saving on completions while continuing to enhance IP rates.

Part II. – Statistical Review

Downhole Completions [Bakken Shale]

Total Respondents = 8 [Service Providers = 6, Consultants = 1, and Operators = 1]

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

Slickwater/Crosslink equally: 6

Crosslink almost exclusively: 1

Crosslink predominately/some slickwater : 1

2. Do you see that changing over the next 3 to 6 months?

No specific changes expected: 6

Search for efficiency with lower sand volumes: 2

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?

200-ft. spacing: 4

200-250 ft. spacing: 2

250-ft. spacing: 2

Average: ~218 ft.

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

Heavy loading of natural sand: 4

Search for efficiencies w/lowering sand volumes: 2

Crosslink w/ceramics: 1

No response: 1

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 2014 demand?

Sufficient: 8

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

Dissolving plugs in use: 3

Nothing new: 5

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

your area?

4-6 wells: 3

5-6 wells: 1

6 wells: 1

5 wells: 2

4 wells: 1

Average ~5 wells per pad

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

Zipper Frac Stack Frac # Responses

75% 25% 3

50% 50% 5

Avg 59% 41% 8

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

10-20 million lbs: 2

12-20 million lbs: 1

14-16 million lbs: 1

12-16 million lbs: 1

12 million pounds: 1

4-6 million pounds: 1

4-5 million pounds (ceramics) 1

Average per well: ~13 million lbs. sand

~4.5 million lbs. ceramic

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

Sand* only: 80%

Ceramics usage: 20%

*Respondents reported 20/40, 40/70 and 100 mesh sand most common