Survey Demographics

Spacing between stages continues to decline in the Denver-Julesburg (D-J) Basin/Niobrara Shale play and averaged under 200 feet in the current survey. Stage spacing remains the main completions tweak as operators have settled upon large proppant slickwater fracture stimulation and plug and perf to complete wells. The effort to postpone completions in lieu of higher commodity prices has also slowed with operators now moving forward on completions, though at vastly reduced well count. Zipper fracks represent 80% of the completions market. Plug and perf is the primary means of completion, though there is some use of sliding sleeves and growing interest in incorporating the newer dissolving balls for sleeve completions. Watch for the next D-J Basin/Niobrara downhole report in December 2015.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Reported As Growing Fracking Method
    [See Question 1 on Statistical Review]
    ​All respondents reported slickwater dominates their fracking practices now as a cost savings measure, but many operators continue to use hybrid systems as well. In addition, there were several mentions of the declining use of ceramics in response to the current low oil prices.
    • Mid-Tier Service Provider: “While operators prefer slickwater for low cost, we still see some hybrid systems in use, but ceramic demand has fallen drastically.”
  • Little Change In Completions Expected In Third-Quarter 2015
    [See Question 2 on Statistical Review]
    ​All respondents expect to see little change as operators seem to be making few changes to Niobrara horizontals and the use of slickwater. Completion delays are slowing, however.
    • Oil Operator: “We just won our surface rights battle to drill again in our Niobrara acreage and will be drilling three new wells in July. Large volume sand fracks with slickwater have been getting good results so that is how we plan to continue.”
  • Spacing Narrows Between Stages
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 125 feet to 225 feet in the play. Standard plug and perf fracks average 180 feet between stages. One respondent said sleeve fracks are not as common, but average 90 feet per stage.
    • Mid-Tier Service Provider: “Spacing has narrowed some as most are using about 30 stages in a 5,000-foot lateral.”
  • Plug And Perf Most Common Fracking Technique
    [See Question 4 on Statistical Review]
    All respondents reported that plug and perf completions are the most common fracking technique in the Niobrara. However, all respondents do both plug and perf and sliding sleeve technology as needed by clients.
    • Completions Supplier: “We supply most products needed to frack a well here. No real changes have been seen, except a growing demand for dissolvable plugs.”
  • 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. No new tools or methods were reported among these respondents.
    • Oil Operator: “With the total number of wells down, many smaller providers closed down or left the area so we are not as oversupplied as previously. I would say supply is sufficient at present.”
  • Multi-Well Pad Use Continues To Grow
    [See Question 6 on Statistical Review]
    The average number of wells per pad among respondents is five. The rate at which a pad is drilled out has slowed as operators conserve budgets. However, many operators are no longer delaying completions after wells are drilled.
  • Zipper Fracks Account For ~80% Of Completions; Solo Fracks ~20%
    [See Question 7 on Statistical Review]
    The percentage of zipper frack completions among respondents averages about 80%; the remaining 20% of wells are fracked individually. This higher number reflects less use of sliding sleeves currently.
  • Natural Sand Reported As Most Common Proppant
    [See Question 8a and 8b on Statistical Review]
    Natural sand is still reported as the most common proppant in the region and averages about 7.7 million pounds per well among respondents. Respondents report 40/70, 30/50 and 100 mesh sand are all common. Natural sand is used as the key proppant on 95% of respondents’ wells and 5% of completed wells use ceramics.

End Survey Findings

Survey Demographics

H A R T E N E R G Y researchers completed interviews with eight industry participants in the well stimulation/pressure pumping service segment in Rocky Mountain areas outside of the Bakken, in particular the Niobrara. Participants included one frack supply salesman, two oil operators and five managers or sales persons with well service companies. Interviews were conducted during the first half of July 2015.

Part II. – Statistical Review

Downhole Completions

[Other Rocky Mountain Areas outside of Bakken]

Total Respondents = 8

[Frack Equipment Suppliers = 1, Frack Service Providers = 5, Oil 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?
Shorter spacing: 5
Same spacing: 3

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

Spacing

Plug and Perf

Sliding Sleeve

200-ft. spacing:

3

125-199-ft. spacing:

5

90-ft. spacing:

1

Average:

~180 feet

~90 feet

3c. How are you fine tuning your frack program downhole?
Slickwater w/heavy loading of sand for each stage: 6
No real changes: 2

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

5a. Would you characterize the supply of downhole tools in your area as excessive, sufficient or insufficient to meet early 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?

3-6 wells:

2

4 wells:

2

4-6 wells:

3

3-8 wells:

1

Average

~5 wells per pad

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

Zipper Frack

Solo Frack

# Responses

80%

20%

2

75%

25%

4

90%

10%

2

Avg. 80%

Avg. 20%

Avg. 8

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

6-8 million pounds:

6

8-12 million pounds:

2

Average per well:

~7.7 million pounds

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

Average Among Respondents

Natural sand only*:

95%

Premium ceramic:

5%

*Respondents reported 100 mesh, 30/50, and 40/70 sand most common

End Statistical Survey