Synopsis

Downhole completions have slowed to a crawl in the Eagle Ford in the wake of the commodity price challenges.

Operators have reduced budgets and gotten conservative on completion practices, settling on slickwater fracks with plug and perf completions. Service providers are reporting little change in technique with sand volumes, methodology, and spacing unchanged from prior regional reports.

Proppant use is listed at an average 12 million pounds per lateral, or roughly 400,000 to 500,000 pounds per stage. Stages are spaced between 200 and 250 feet apart and typically incorporate three perforation clusters.

The issue of drilled but uncompleted wells remains with zipper fracks falling to 58% of completions among survey respondents, down marginally from 63% last quarter.

Zipper fracks are a proxy for batch completions. The continuing decline in zipper frack share indicates operators are delaying completions on a significant percentage of horizontal laterals.

Watch for the next Eagle Ford downhole completions update in March 2016.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Dominates Completions
    [See Question 1 on Statistical Review]
    All eight respondents reported that slickwater is most common in the Eagle Ford region. Respondents also reported that drilling and completions continue at a very slow pace due to the current oil price environment.
  • 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 staying the same, though volumes are down due to the slow pace of completions.
    • Mid-Tier Provider: “Operators have cut budgets to a crawling pace until the oil price recovers. Most are hoping to just hold on until mid-2016.”
  • Spacing Between Frack Stages Averages 216 Feet
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 200- to 250 feet in the play and averages about 216 feet, slightly shorter than the 286-foot spacing reported in the August report. All respondents have kept spacing about the same this year.
    • Mid-Tier Operator: “We see most clients using 200- to 250-foot spacing and 400,000- to 500,000 pounds. of sand per stage. We typically place 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 Eagle Ford now. No respondents mentioned any sliding sleeve jobs taking place in the play currently.
    • Top-Tier Service Provider: “Plug and perf slickwater fracks with mostly 100 mesh sand are the most common currently.”
  • 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. No new downhole tools or methods are reported in the play.
    • Mid-Tier Operator: “There are no new tools that we have seen. We continue to frack the same, but at a much slower pace.”
  • Multi-Well Pads Average Four Wells Per Pad
    [See Question 6 on Statistical Review]
    The average number of wells reported per pad is about four. Reports ranged from three to four wells per pad in the region.
    • Mid-Tier Operator: “Four well pads are most common, but operators don’t drill and complete as a batch anymore.”
  • Zipper Fracks Account For 58% Of Completions; Solo Fracks Account For Remainder
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 58%, less than the 63% reported in August. The remaining 42% wells are fracked using the solo frack on one well at a time, up from 37% reported in August. Solo fracks are very common now due to the slower pace of drilling and completing wells.
    • Mid-Tier Operator: “Zipper fracks are commonly used, but we see more solo completions now due to desire to slow the pace and conserve the budget.”
  • 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 12 million pounds per well, in line with respondents’ responses in June, but somewhat higher than reported in August. Respondents reported 40/70 and 100 mesh are most common. A few providers also mentioned 30/50. A total of 100% of proppant reported is natural sand.
  • Enhanced Completions Continue At Slower Pace
    [See Question 9a and 9b on Statistical Review]
    All respondents reported the use of enhanced horizontal completion methods continues. Sand volumes have not been reduced as seen elsewhere, though the total number of completions has fallen. Meanwhile, respondents said that perf clusters are within the range of three to four sets per stage with none reporting an increase over six months ago.

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 Eagle Ford shale area. Participants include seven sales professionals with well service companies and one technical completions consultant for an E&P company. Interviews were conducted during late November and early December 2015.

Part II. – Statistical Review

Downhole Completions

[Eagle Ford Shale]

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?

200-225-foot spacing:

4

200-250-foot spacing:

4

Average spacing:

~216 feet


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

Large sand volume slickwater:

8


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 or sufficient to meet late 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?

4-6 wells:

1

3-4 wells:

2

4-6 wells:

5

Average:

~4 wells per pad


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

Zipper Frack

Solo Frack

# Responses

50%

50%

3

40%

60%

1

60%

40%

2

80%

20%

1

75%

25%

1

Average 58%

Average 42%

8


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

10-12 million pounds:

3

10-15 million pounds:

3

12-15 million pounds:

2

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:

100%

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


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. There were no reports of reduced sand volumes in the Eagle Ford as has been seen in other markets.


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

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