Synopsis

The Marcellus downhole completions recipe is carved in sand, so to speak. Average sand volumes now exceed 10 million pounds per well as operators standardize on slickwater treatments with high proppant loading, generally characterized as 400,000 pounds of proppant per stage. Marcellus operators are coping with the current downturn by targeting more formations in the stacked play Appalachian Basin, drilling as many as nine wells per pad with three separate formations as objectives in a triple stack play program first noted in the February 2015 Heard in the Field downhole completions report. Activity has slowed in the Utica and this report therefore reflects a greater weighting toward practices in the Marcellus where wells are shallower, laterals shorter and proppant use, while high, below levels consumed in the deeper Utica. More than 70% of wells are completed using zipper fracks.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Is Dominant in the Region
    [See Question 1 on Statistical Review]
    ​All respondents reported slickwater dominates fracking practices in the region. No changes are expected in the near term as results have been consistently good.
    • Mid-Tier Service Provider: “There are no real changes from slickwater high volume sand fracks at present in the play. Results have been good.”
  • No Expectation of Change in Near Term
    [See Question 2 on Statistical Review]
    ​Eight respondents expect to see no changes in the near term. Spacing and methodology is consistent with a stronger focus on the less expensive Marcellus wells at present.
    • Top Tier Operator: “Few changes are happening currently. There tends to be more focus on Marcellus wells at present rather than the deeper more expensive Utica wells.”
  • Spacing Between Frack Stages ~227 feet Among Respondents
    [See Questions 3a, 3b on Statistical Review]
    ​Spacing ranges between 175 feet to 300 feet in the play for an average of about 227-feet spacing among respondents.
    • Mid-Tier Service Provider: “Spacing differs a lot between clients, but ranges between 175-250 feet per stage. Sand volume differs too, but most laterals take 10 million pounds of sand or more, regardless of spacing."
  • 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 have settled on the huge sand amounts using 400,000 pounds per stage or more. Currently, 40/70 sand is most common with 100 mesh and 30/50 sand also in wide usage.
  • Plug and Perf is Reported as Most Common
    [See Question 4 on Statistical Review]
    ​All respondents reported that Plug and Perf completions are the standard fracking technique in the region. There were no reports of sliding sleeves mentioned by respondents.
    • Mid-Tier Service Provider: “With traditional fracks, plug and perf is the consistent choice in the Marcellus.”
  • Downhole Tools, Service Providers Excessive
    [See Question 5a and 5b on Statistical Review]
    ​All respondents reported that the number of downhole tool providers is excessive within the region with drilling and completions slowing in the area. No new downhole tools or methods are reported in the play.
    • Mid Tier Operator: “There are few changes occurring other than the general slowdown. 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]
    ​The average number of wells reported per pad is about six in the Marcellus. Triple stacked plays were mentioned again with nine or more wells from the same pad becoming more common.
    • Mid Tier Operator: “The triple stacked plays with at least three wells in each of three pay zones from the same pad have proven to be very efficient and will likely expand in popularity.”
  • Zipper Fracks Account for ~71% of Completions
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions among respondents is about 71%. The remaining 29% of wells are fracked using the solo frack on one well at a time. This number is only slightly different from last quarter and may reflect differences within the region.
    • Mid Tier Operator: “Zipper fracks continue as the norm with three wells zipper fracked at a time.”
  • 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 12 million pounds per well among respondents. Respondents report 40/70 and 100 mesh are most common respectively. 30/50 use is common with several operators.

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 fraccing service providers and two completions consultants/engineers with E&P operators. Interviews were conducted during mid May 2015.

Part II. – Statistical Review

Downhole Completions

[Marcellus and Utica Shales]

Total Respondents = 8

[Fraccing 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?
175-250 feet spacing: 7
250-300 feet spacing: 1
Average: ~227 feet.

3c. How are you fine tuning your frack program downhole?
Sand volumes: 6
No real changes: 1
Some gel where needed: 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 early 2015 demand?
Excessive: 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?
5-6 wells: 7
6-9 wells: 1
Average ~6 wells per pad

7. What percentage of fracks drilled from pads are zipper fracs vs. individual fracks?
Zipper Frack Stack Frack # Responses
75% 25% 2
80% 20% 1
85% 15% 1
25% 75% 1
90% 10% 2
50% 50% 1
Avg 71% 29% 8

8a. How much proppant (in lbs.) are you using per well?
12-16 million: 1
10-15 million pounds: 7
Average per well: ~12 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: 1%**

*Sand Types mentioned:
40/70 most common
100 mesh second most common
30/50 also common

**Two mentions of ceramic on deeper Utica wells as needed.

End Statistical Review