Synopsis

The Appalachian market is stable when it comes to downhole completions. However stability, in this instance, means activity at very low levels.

Operators in the Marcellus Shale remain economically challenged and are reluctant to vary downhole completion techniques. Currently the tried and true fallback method is slickwater with plug and perf.

Stage spacing has stabilized at just under 200 feet with three to four perf clusters and 250,000 pounds of sand per stage on average.

There have been some experiments with sliding sleeves but none of the respondents in the current survey identified any instances of sliding sleeve use. Although there was one report that suggested growing use of dissolvable plugs.

The survey saw an increase in the percentage of wells completed with zipper fracks. Survey respondents reported 62% of regional wells were completed using the technique, up from 51% last quarter.

Proppant volume remained unchanged, averaging 10.5 million pounds of sand per lateral. Some ceramics are used for deeper higher temperature/higher pressure wells.

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

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Dominates Completions
    [See Question 1 on Statistical Review]
    All eight respondents reported that slickwater is the most common method in the Marcellus area. Respondents indicated that upper Marcellus fracking activity was occurring more recently rather than the deeper Marcellus and Utica formations due to the higher costs of drilling and completing the latter wells.
  • No Changes Expected In Near-Term
    [See Question 2 on Statistical Review]
    ​All respondents expect few or no changes in the near term. All reported the same methods are in use and few changes are expected until market conditions improve.
    • Mid-Tier Provider: “Operators are happy with the methods and results of current completions, just not with the economics at these gas and oil prices.”
  • Spacing Between Frack Stages Averages 197 Feet
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 150- to 250 feet in the play and averages about 197 feet. All respondents have kept spacing about the same this year.
    • Mid Tier Operator: “We see most clients using 150- to 250-foot spacing and 250,000 to 300,000 pounds of sand per stage. We typically see three 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. Although some operators have used sleeve technology, no reports of current jobs involving sliding sleeves were reported.
    • Mid-Tier Service Provider: “Plug and perf slickwater fracks with large sand volumes are the method of choice currently.”
  • Downhole Tools, Service Providers Sufficient
    [See Question 5a and 5b on Statistical Review]
    ​Four of eight respondents reported that the number of downhole tool providers is sufficient. Four others believe there is still excessive supply. No new downhole tools or methods are reported in the play. One mention was made of the increasing use of dissolving plugs.
    • Mid-Tier Operator: “There are no new methods being seen in a while. Results with current methods are good, but overall economics hinder experimentation at present.”
  • Multi-Well Pads Average Six Wells Per Pad
    [See Question 6 on Statistical Review]
    ​The average number of wells reported per pad is about six, same as in the August report. Respondents’ answers ranged from four to eight wells per pad.
    • Mid-Tier Operator: “Even though some use bigger well pads, most commonly we see use of six to eight well pads. With the slow pace, we do see more solo completions however.”
  • Zipper Fracks Account For 62% Of Completions; Solo Fracks Account For Remainder
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 62%, up somewhat from the 51% reported in August. The remaining 38% of wells are fracked using the solo frack on one well at a time and are presently common due to slower pace.
    • Mid-Tier Operator: “Zipper fracks are commonly used, but we see many solo completions since completions slowed considerably.”
  • 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 10.5 million pounds per well, similar to findings in August. Respondents reported 40/70, 30/50 and 100 mesh are most common. A total of 96% of proppant reported is natural sand. The remaining 4% is attributed to ceramic proppants, which are still used in some deeper higher pressure wells.
  • Virtually All Horizontal Completions Are Now Enhanced Completions
    [See Question 9a and 9b on Statistical Review]
    All respondents reported that horizontal completions always involve enhanced methods currently. Enhanced completions are comprised of heavy sand volumes and three to four perf sets per stage. Few changes have occurred even with low oil and gas prices because the enhanced methods have driven efficiency.

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 region. Participants included seven sales professionals with well service companies and one completions manager for an E&P company. Interviews were conducted during late October 2015.

Part II. – Statistical Review

Downhole Completions

[Marcellus]

Total Respondents = 8

[Fracking Service Providers = 7, Operators = 1]

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?

150- to 200 foot spacing:

4

150- to 250 foot spacing:

4

Average spacing:

~197 feet


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

Large sand volume slickwater:

7

Custom frack design for every well:

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:

4

Excessive:

4


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:

2

6-8 wells:

6

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%

3

60%

40%

2

50%

40%

3

Average 62%

Average 38%

8


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

6-10 million pounds:

3

10-15 million pounds:

5

Average per well:

~10.5 million pounds


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

Average Among Respondents

Natural sand* only:

96%

Ceramic proppants:

4%

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

Premium proppant: ceramics is 4%.


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 100% of horizontal completions are enhanced by high sand volumes, high water volumes at high rates.


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

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


End Statistical Survey