Synopsis

Marcellus operators are cutting back multi-well completions as tough economic conditions continue for the oil and gas industry. The percentage of wells completed via zipper frack dropped from more than 70% in first-quarter 2015 to 51% in the current survey, primarily because operators are either not drilling all the wells on a pad, or are drilling but not completing wells. Otherwise completions remain the same, characterized by plug and perf, slickwater, greater proppant loading with an average 10 million pounds of sand per lateral among participants in the Hart Energy survey. Downhole tool providers have laid off employees, leaving the market well supplied with vendors but not excessively oversupplied. Stage spacing, wells per pad and number of stages have also stabilized. Watch for the next Appalachian Basin downhole report in November 2015.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Continues To Dominate In The Region
    [See Question 1 on Statistical Review]
    ​All respondents reported slickwater continues to dominate fracking practices in the region. No changes are expected in the near term as results continue to show efficiency.
    • Mid-Tier Service Provider: “There are no pressures to change completion tactics as results have been good. Prices have come down from suppliers and providers alike to keep operators working and methods are constant.”
  • No Expectation Of Change In Near Term
    [See Question 2 on Statistical Review]
    ​All respondents expect no changes to fracking methods in the near term. Spacing and methodology is consistent with a stronger focus on the less expensive Marcellus wells currently.
    • Top Tier Operator: “We are currently spacing 200 feet in the Marcellus wells and 180 feet in our Utica wells. We tend to use longer laterals in the Utica that are averaging more than 10,000 feet.
  • Spacing Between Frack Stages About 191 Feet
    [See Questions 3a, 3b on Statistical Review]
    ​Spacing ranges between 150 feet to 250 feet in the play for an average of about 200 feet, according to respondents. In wells with laterals ranging 6,000 feet to 8,000 feet, operators are averaging 30 to 40 stages.
    • Mid-Tier Service Provider: “Spacing has very consistently averaged 200 feet among our Marcellus clients.”
  • Range Of Types And Amounts Of Sand Narrowed
    [See Question 3c on Statistical Review]
    Most fracks have become very consistent in the entire region. Most operators continue to use huge sand volumes. Currently, 40/70 sand is most common with 100 mesh and 30/50 sand also in wide usage.
  • Plug And Perf Is Standard
    [See Question 4 on Statistical Review]
    ​All respondents reported that plug and perf completions are the standard fracking technique in the region. One respondent reported using sliding sleeve technology on some wells in the area.
    • Mid-Tier Service Provider: “Plug and perf remains the method of choice most common in the Marcellus.”
  • 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 as layoffs have balanced demand and supply. No new downhole tools or methods were reported.
    • Mid Tier Operator: “Other than the general slowdown, there are few changes occurring. Current methods are working well, but drilling and completion budgets were cut across the board causing this slowdown.”
  • Multi-Well Pads Common In The Marcellus Shale
    [See Question 6 on Statistical Review]
    ​Average number of wells reported per pad is about six. Some respondents reported there have been delayed drilling on some pads as well as delayed completions.
    • Mid Tier Operator: “We still plan to have a number of wells on our pads eventually, but have slowed both our drilling and rate of completions.”
  • Zipper Fracks Account for About 51% Of Completions; Solo Fracks 49%
    [See Question 7 on Statistical Review]
    The percentage of zipper frack completions among respondents is about 51% on average. The remaining 49% of wells are fracked one well at a time (solo fracks). These ratios vary greatly from last quarter when zipper fracks accounted for 71% of all completions and solo fracks stood at 29%.
    • Mid Tier Operator: “Zipper fracks are less common now as many wells are delayed on completion.”
  • Sand Remains Most Common Proppant In Region
    [See Question 8a and 8b on Statistical Review]
    Natural sand is reported as the most common proppant in the region and averages about 10 million pounds per well among respondents. Respondents reported 40/70 and 100 mesh are the two most common types, followed by 30/50. One respondent reported of the use of ceramic proppants in deeper wells.

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 Marcellus/Utica region. Participants include six sales professionals with well service companies and two completions consultants/engineers with E&P operators. Interviews were conducted during last week of July 2015.

Part II. – Statistical Review

Downhole Completions

[Marcellus and Utica Shales]

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?

175- to 250-foot spacing:

7

150-foot spacing:

1

Average of actual ranges given:

~191 feet


3c. How are you fine tuning your frack program downhole?
Sand volumes: 7
Providing coil delivered tools: 1

4. What fracking technique is most common in your area?
Plug and perf: 8

5a. Would you characterize the supply of downhole tools in your area as excessive, sufficient or insufficient to meet late 2015 demand?
Sufficient: 8

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?

4-6 wells:

6

6-8 wells:

2

Average:

~6 wells per pad


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

Zipper Frack

Stack Frack

# Responses

75%

25%

1

25%

75%

1

60%

40%

1

50%

50%

5

Average 51%

Average 49%

8


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

7-10 million lbs:

4

12-15 million lbs:

4

Average per well:

~10 million pounds


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

Average Among Respondents

Natural sand only:

99%*

Ceramics on deeper wells:

1%

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


End Statistical Survey