Synopsis

The more the Marcellus market changes in a low cost commodity price environment, the more the completion recipe stays the same.

Operators remain tied to the “tried and true” in the Marcellus, which features large proppant loading on standard slickwater fracture stimulation treatments.

Operators have standardized stage spacing (206 feet), plug and perf completion methodology, and sand volumes (more than 7 million pounds of bulk commodity sand). A slight change in mix from horizontal to vertical wells has been discussed in the current low commodity price environment.

Marcellus operators are also discussing refracks, though few have been implemented. Meanwhile zipper fracks account for 61% of completions, which has remained steady since the last report in November 2015.

Operators are doing fewer batch completions until commodity pricing recovers. Solo fracks remain widespread because of the slow pace of completions.

Watch for the next Heard In The Field report on the Marcellus downhole completions market in May 2016.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Completions Most Common
    [See Question 1 on Statistical Review]
    All respondents reported that slickwater is most common in the region. Respondents also acknowledged that drilling and completion of horizontal wells continues at a very low rate compared with a year ago.
  • No Changes Expected In Near-Term
    [See Question 2 on Statistical Review]
    All respondents expect few or no changes in the near term. Sand volumes and methods are reportedly staying the same on horizontal wells, though completions are at a much slower pace.
    • Mid-Tier Provider: “The average operator has been happy with results and production, but [commodity] pricing continues to kill any incentive to increase production.”
  • Spacing Between Frack Stages Averages 206 Feet
    [See Questions 3a, 3b and 3c on Statistical Review]
    ​Spacing ranges between 200- to 250 feet in the play and averages about 206 feet. All eight respondents have kept spacing about the same this year with one provider reported completing only verticals now. Meanwhile, large volumes of sand are used in most completions with a few reports of gel and targeting clustering mentioned.
    • Mid-Tier Operator: “We have seen few changes with our spacing. The methods for completing have worked well and there is no reason to change.”
  • 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 Marcellus now. No respondent reported any sliding sleeve jobs.
    • Top-Tier Service Provider: “The most common at these prices is less expensive slickwater with large sand volumes to get lots of proppant in the fracture.”
  • Refrack Is Discussed More Than It Is Used
    [See Question 5a and 5b on Statistical Review]
    ​Seven of eight respondents reported that the actual implementation of refracking wells is rare. Furthermore, no new refrack tools are reported in the play. One operator is using diverter to lengthen fracks and has used the method for successful refrack stimulation.
    • Mid-Tier Operator: “There are no new refrack tools per se. We are using a diverter product developed and used successfully for refrack and find it useful for lengthening the fractures in new wells, too.”
  • Multi-Well Pads Average About Six Wells Per Pad
    [See Question 6 on Statistical Review]
    Average number of wells reported per pad is about six. Reports ranged from five to eight well pads in the region.
    • Mid-Tier Operator: “Five to six wells per pad is common, but they are not always completed in batches now.”
  • Zipper Fracks Account For 61% Of Completions; Solo Fracks Account For Remainder
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 61%, similar to findings in the November report. The remaining 39% of wells are fracked using the solo frack on one well at a time and are common due to slower pace of completion activity.
    • Top Tier Operator: “Zipper fracks are still widely used, but many operators are using smaller batches during the completion phase or even solo completions.”
  • 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 7 million pounds per well, down from about 10 million pounds per well reported in November. Respondents reported 40/70, 100 mesh and 30/50 are most common. A total of 98% of proppant reported is natural sand and 2% is ceramics.
  • Perf Sets Per Stage: Average 3-4
    [See Question 9a and 9b on Statistical Review]
    Most completions in the Marcellus 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.

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 include seven sales professionals with fracking service companies and one completions manager for an E&P company. Interviews were conducted during late January 2016 and early February.

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:

2

200-foot spacing:

2

200- to 250-foot spacing:

4

Average spacing:

~206 feet


3c. How are you fine tuning your frack program downhole? (Some respondents gave more than one answer.)

Large sand volumes:

8

Using hybrid gels:

2

Using targeted clustering:

1


4. What fracking technique is most common in your area?

Plug and perf:

8


5a. Looking at the number of total frack jobs in your area, what percent are new fracks and what percent are refracks?

New wells average:

98%

Refrack average:

2%


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?

5-6 wells:

2

6 wells:

2

6-8 wells:

4

Average:

~6 wells per pad


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

Zipper Frack

Solo Frack

# Responses

60%

40%

1

50%

50%

4

75%

25%

3

Average 61%

Average 39%

8


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

6-8 million pounds:

3

8-10 million pounds:

5

Average per well:

~8.2 million pounds


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

Average Among Respondents

Natural sand* only:

98%

Ceramic proppants:

2%

*Sand usage: 40/70, 100 mesh and 30/50 are most common.


9a. How many perf clusters are typical between stages?

Average among all respondents:

about 3


9b. Is that more or less than six months ago?

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


End Statistical Survey