Synopsis

Operators have settled on a standardized approach to downhole completions in the most active plays in the Midcontinent with slickwater, high proppant loading, plug and perf, and closer stage spacing comprising the current completions recipe. Market participants refer to the process as tried and true—and effective. There appears to be little interest in fixing a process that isn’t broke via experimentation with new techniques, though a small number of market participants use coil tubing conveyed fracture stimulation via sliding sleeves. There is also some experimentation with a new completion cocktail in some formations using acid, a surfactant, and a biovert. Sand use per well grew slightly since the February 2015 report and now exceeds 8 million pounds per well. Average stage spacing counter-intuitively increased to more than 300 feet in this report as operators seek cost reduction—tried and true at bargain prices, as one market participant said. Zipper fracks dropped below 50% of completions—evidence that operators are delaying completions in the current economic regime. This report focused exclusively on the Cana Woodford and Scoop portions of the Midcontinent. Watch for the next Midcontinent downhole report in July 2015.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater, Big Sand Volumes Characterize Midcon Fracks, But Pace Slows
    [See Question 1 on Statistical Review]
    ​All respondents reported slickwater dominates fracking practices in the Mid-Continent. In addition, the use of huge sand volumes continues. Responses in this report focused on the Cana Woodford and Traditional Woodford region in Oklahoma where the use of sand is high, but high sand volumes continue across other Oklahoma plays as well.
    • Mid-Tier Operator: “Few [operators] plan to change methods and are staying with slickwater frack with large sand volumes and demanding deep concessions to keep frack crews working.”
  • No Change in Fracking Methods Expected
    [See Question 2 on Statistical Review]
    ​All respondents expect to see no changes in the next quarter as far as methods and with most all operators staying with what has been working.
    • Midcontinent Operator: “Most operators continue to stay the course. However, many wells are drilled but delayed on frack.”
  • Spacing Between Frack Stages About 319-ft.
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 250-ft. to 400-ft. in the play. The average number of stages has decreased as operators focus on less expensive fracks across the play. The average spacing has now stabilized at slightly more than 319-ft. on average. Higher spacing numbers relate to fewer coiled tubing fracks.
    • Mid-Tier Service Provider: “We are seeing lots of 300’ stages with high sand volumes. There is nothing new or fancy, but tried and true at bargain prices.”
  • 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 Midcontinent and that sliding sleeves are primarily used with coil fracks only. One major operator was reported to have gone to frack point sleeve fracks exclusively in the play.
    • Mid-Tier Service Provider: “Midcon operators continue use the plug and perf completion with large sand volumes. It just works well here and only proven better results will cause a change.”
  • Downhole Tools, Service Providers Sufficient
    [See Question 5a and 5b on Statistical Review]
    ​All respondents reported that the number of downhole tool providers is excessive within the region due to decreasing demand. Almost no new tools or methods were mentioned. One service provider reported an acid, surfactant, and biovert “cocktail” that is proving effective.
    • Midcontinent Completions Supplier: “We have developed a cocktail of acid, surfactant and biovert that is doing a great job.”
  • Multi-Well Pads Common: Average Three Wells Per Pad
    [See Question 6 on Statistical Review]
    The average number of wells reported per pad is about three in the area of focus. This number continues to hold steady in the region.
  • Zipper Fracks Account for ~49% of Completions
    [See Question 7 on Statistical Review]
    The percentage of zipper frack completions among respondents is about 49%. The remaining 51% of wells are fracked using the stack frack method or solo frack on one well at a time. The number of wells being fracked is declining slightly as more are postponed for completions later.
  • 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 8 million pounds per well among respondents. Respondents said 40/70, 30/50 and 100 mesh sand are most common with 100% of wells using natural sand only among the respondent group.

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 Midcontinent region. Participants included an oil and gas operator, a coil tubing equipment provider and six managers or sales personnel with well service companies. Interviews were conducted during late April 2015.

Part II. – Statistical Review

Downhole Completions

[Midcontinent]

Total Respondents = 8

[Oil and Gas Operators = 1, Coil Tubing Supplier = 1, Frack Service Providers = 6]

1. What common practices are used in your area for completions?
Slickwater: 8

2. Do you see that changing over the next 3 to 6 months?
No changes expected: 8

3a. Is spacing between stages closer now than a year ago?
No: 8

3b. What is the average distance between frac stages in your area?
250’-300’ spacing: 2
300’ spacing: 3
300’-400’ spacing: 2
400’ spacing: 1
Average: ~319-ft.

3c. How are you fine tuning your frack program downhole?
Higher sand volumes/slickwater 6
Coil tubing fracks and coil delivered tools 1
Cocktail of acid, surfactant, and biovert 1

4. What fracking technique is most common in your area?
Plug and Perf: 7
Sleeves: 1*
*This company will do either, but reported on major operator switched to all sleeve jobs.

5a. Would you characterize the supply of downhole tools in your area as excessive, sufficient or insufficient to meet early 2014 demand?
Excessive: 8

5b. Are there any new downhole tools being tried in your area?
Nothing new: 7
Various coil delivered tools or fracks 1

6. What is the average number of wells being completed per pad in your area?
2 wells: 1
1-3 wells: 1
2-3 wells: 1
3-4 wells: 2
4 wells: 1
2-4 wells: 2
Average ~3 wells per pad

7. What percentage of fracks drilled from pads are zipper fracks vs. individual fracks?
Zipper Frack Stack Frack # Responses
75% 25% 1
25% 75% 1
40% 60% 1
50% 50% 5
Avg 49% 51% 8

8a. How much proppant (in lbs.) are you using per well?
4-8 million lbs: 1
6-12 million lbs: 2
8-16 million lbs: 1
10-12 million lbs: 2
5-7 million lbs: 1
1-3 million lbs: 1
Average per well: ~8 million pounds

8b. On a percentage basis, how much proppant in your area is used by type?
Average Among Respondents
Sand* only: 100%
*Respondents reported 40/70, 30/50 and 100 mesh sand most common.

End Statistical Review