Synopsis

One component of the current downturn is that operators have settled on a basic completion recipe and are sticking to it in the Permian Basin: slickwater fracture stimulation.

The only changes underway currently in completions are slight tweaks in sand volume and spacing between stages. Otherwise, it remains business as usual in the downhole completions market.

Many markets have seen operators decreasing the length between stages. However, the opposite is occurring in some parts of the Delaware Basin as operators stretch lateral length and extend the distance between stages. They are offsetting the change by using massive sand/proppant volume on the treatment side—in some cases up to 500,000 pounds of sand per stage.

Plug and perf dominates though there are some key pockets where operators prefer sliding sleeves. Meanwhile, the percentage of zipper fracked wells remains constant with the June report among survey respondents. Although, the volume of sand per well edged back up above 9 million pounds per well after a drop in June.

This report focused more closely on practices in the northern Delaware Basin vs. the Midland Basin tie to the last report. Watch for the next Permian Basin downhole completions report in December 2015.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Dominates Completions
    [See Question 1 on Statistical Review]
    All eight respondents reported that slickwater is most used in the Permian Basin, same as in the June report. No big changes have occurred in recent months except tweaking sand volumes and stage lengths.
  • 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 there are few reasons to change until market conditions change.
    • Mid Tier Provider: “Most clients are getting great results from large sand volume slickwater fracks and only tend to look to maximize the method.”
  • Spacing Between Frack Stages Averages 441-Feet
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 250- to 600 feet in the play and averages about 441 feet. This is an increase over the average 275 feet mentioned in the June report. Most respondents have kept spacing about the same this year, but three respondents are using 500- to 600-foot spacing on very long laterals and very big sand volumes per stage. These new spacing distances have increased the average stage lengths.
    • Mid Tier Operator: “We have a couple of clients using really long stages with big sand volumes with 350,000 to 500,000 pounds of sand per 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 Permian now. However, one of the respondents is using their sliding sleeve technology exclusively and claims their method is gaining share with several operators.
    • Mid-Tier Service Provider: “Plug and perf remains the method of choice in the Permian. Only a few operators ask for sliding sleeves currently.”
  • Downhole Tools, Service Providers Sufficient
    [See Question 5a and 5b on Statistical Review]
    ​Seven of eight respondents reported that the number of downhole tool providers is sufficient. One respondent reports excessive supply. No new downhole tools or methods are reported in the play, but dissolving plugs are gaining interest with many operators who reported saving up to $300,000 on drill-out costs.
    • Mid-Tier Operator: “There are no big changes expected since production results from large sand volume slickwater fracks keep methods stable for now.”
  • Multi-Well Pads Average Three Wells Per Pad
    [See Question 6 on Statistical Review]
    Average number of regional wells reported per pad is about three. There are mostly three well pads among these respondents.
    • Mid Tier Operator: “Our plans call for our build-out on our acreage to use three well pad designs.”
  • Zipper Fracks Account For 56% of Completions; Solo Fracks Account For Remainder
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 56%, matching findings in the June report. The remaining 44% of wells are fracked using the solo frack on one well at a time.
    • Mid Tier Operator: “Zipper fracks are still preferred for efficiency when several wells are fracked at the same time. As drilling slowed and some completions were delayed, the number of single wells increased some.”
  • 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 9.1 million pounds per well, up from the 7 million reported in the June report. Respondents reported 40/70 sand, 30/50 and 100 mesh are most common. A total of 100% of proppant reported is natural sand among these respondents.

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 Permian Basin. Participants include sales professionals with well service companies and two completions consultants for E&P companies. Interviews were conducted during first week of September 2015.

Part II. – Statistical Review

Downhole Completions

[Permian Basin]

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?

No, it has increased:

3

Same:

5


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

200- to 300-foot spacing:

4

100- to 200-foot spacing with sleeves:

1

500- to 600-foot spacing:

3

Average spacing:

~441-ft.


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

Large sand volumes:

7

Using 3-D seismic to guide enhanced completions:

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:

7

Excessive:

1


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 wells:

6

2-3 wells:

2

Average:

~3 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

75%

25%

3

60%

40%

2

50%

50%

2

Average 56%

Average 44%

8

*One respondent is doing sleeve coil fracks and are all solo


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

7-10 million pounds:

1

10 million pounds:

4

10-15 million pounds:

3

Average per well:

~9.1 million pounds


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

Average Among Respondents

Natural sand* only:

100%

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


End Statistical Survey