Synopsis

The Eagle Ford Shale is now a Rip Van Winkle market: completion activity has fallen into a deep slumber due to low commodity prices.

Completions that do take place are overwhelmingly slickwater fracture stimulation events utilizing plug and perf and 10 million pounds of bulk commodity sand as proppant. A few operators mix in gel on completions, but the overwhelming majority goes straight slickwater.

Respondents in Hart Energy’s market intelligence survey said there were no instances of sliding sleeve use in the play currently. Meanwhile, batch completions continue their long decline.

Survey respondents noted zipper fracks accounted for less than 40% of completions, down from just under 60% in the last Eagle Ford report 90 days ago. This implies that the backlog of drilled but uncompleted wells may be rising since most drilling occurs on pads of four wells.

A couple of the majors negotiated multi-well completion contracts with well stimulation providers and are still executing zipper fracks, though the majority of wells outside those instances are now done as solo completions.

Several operators are pursuing remedial work on existing horizontal laterals to keep production up. The effort typically involves a lateral flush with some re-stimulation and represents about 9% of the market.

Although operators are discussing refracks, none are underway because of low commodity prices.

Watch for the next Heard In The Field report on the Eagle Ford downhole market in June 2016.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Completions Most Common
    [See Question 1 on Statistical Review]
    ​All eight respondents reported that slickwater is most common in the region, with one respondent reporting using some gel at present. Respondents said drilling and completion of horizontal wells continues to decline with the rig count falling so low in the area.
    • Top-Tier Service Provider: “The slickwater frack, with maybe some resin sand tailed in, is still the preferred method. Results are good but not at this price.”
  • No Changes Expected In Near-Term
    [See Question 2 on Statistical Review]
    ​All respondents expect few or no changes in the near term. Several respondents said completions are coming to a standstill except for those taking place by a couple of major E&P companies.
    • Mid-Tier Provider: “There is no effort to change methods, but costs have been slashed.”
  • Spacing Between Frack Stages Averages 255 Feet
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 200 feet to 350 feet in the play and averages about 255 feet. All respondents have kept spacing about the same this year.
    • Mid-Tier Operator: “No real change has occurred here on spacing.”
  • 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 currently. None of the respondents are using sliding sleeve.
  • Remediation, But Not Full Refrack At Current Oil Price
    [See Question 5a and 5b on Statistical Review]
    One respondent reported that remediation work is prevalent now, but stressed the work is not a full refrack. The remediation work involves a flush and re-stimulation of declining horizontals with good results. No new refrack tools are reported in the play.
    • Mid-Tier Operator: “There is nothing new being reported for refrack since there is little incentive to do so until price recovers.”
  • Multi-Well Pads Average ~4 Wells Per Pad
    [See Question 6 on Statistical Review]
    ​The average number of wells per pad is about four. Responses ranged from three to five wells per pad in the region.
    • Mid-Tier Operator: “Four wells per pad is most common, but don’t get many calls for multi-well fracks at present.”
  • Zipper Fracks Account For 39% Of Completions; Solo Fracks Account For Remaining 61%
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 39%, down from 58% found in the December report. The remaining 61% of wells are fracked using the solo frack on one well at a time.
    • Top-Tier Operator: “Zipper fracks are still used by a couple of majors who negotiated very cheap package deals, but solo completions are most common now.”
  • Natural Sand Remains Key Proppant
    [See Question 8a and 8b on Statistical Review]
    Natural sand is reported as the most common proppant in the region and averages about 10 million pounds per well, down from 12 million pounds per well reported in December. Respondents reported the most common sands used are 40/70 and 100-mesh. A total of 98% of proppant reported is natural sand and the remaining 2% is resin-coated sand.
  • Three Perf Sets Per Stage Most Common
    [See Question 9a and 9b on Statistical Review]
    All respondents reported three to four perf sets per stage were commonplace now with no change reported from 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 six sales professionals with fracking companies, one consultant with an E&P company, and one downhole tool equipment supplier. Interviews were conducted during late February and early March 2016.

Part II. – Statistical Review

Downhole Completions

[Eagle Ford Shale]

Total Respondents = 8

[Fracking service providers = 6, E&P consultant = 1, Equipment supplier = 1]

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

Slickwater:

8

Hybrid:

1*

*One respondent acknowledged slickwater most common in region, but said some hybrids use gel.


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?

200-250-foot spacing:

7

251-350-foot spacing:

1

Average spacing:

~255 feet


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

Large sand volume slickwater:

7

Coil frack:

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 percentage are new fracks and what percentage are refracks? (must add up to 100%)

New wells average:

91%

Refrack average:

9%


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 wells:

5

3-5 wells:

3

Average:

~4 wells per pad


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

Zipper Frack

Solo Frack

# Responses

40%

60%

1

50%

50%

4

25%

75%

3

Average 39%

Average 61%

8


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

10-15 million pounds:

1

6-10 million pounds:

7

Average per well:

~10 million pounds


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

Average Among Respondents

Natural sand* only:

98%

Resin-coated sand:

2%

*Sand usage: 40/70 and 100-mesh are most common.


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

Average:

~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