Synopsis

Midcontinent operators are ramping up use of sand per well as low commodity prices reinforce the move to massive slickwater treatment. Metrics on stage spacing, number of stages, and fracture stimulation technique have not changed during the downturn. Rather, operators are taking advantage of low service costs to extend lateral lengths and increase the volume of proppant downhole. The average in this survey, which focused on the Woodford Shale, was 10 million pounds per well versus 7.7 million pounds at the beginning of the year. Service providers are reporting growing demand for dissolvable plugs to eliminate expense involved in drilling out plugs, which can save $75,000 to $100,000 per well. The pace of completions is slowing and operators are extending budgets by completing a single well at a time on pads. Few completions are delayed currently in contrast to earlier this year. The percentage of zipper fracture stimulation treatments in the Midcontinent reflects this trend. Zipper fracks have dropped from slightly more than half of all wells in April to about one third in July 2015. Watch for the next Midcontinent downhole report in October 2015.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Repoted As Main Fracking Method
    [See Question 1 on Statistical Review]
    ​All respondents reported slickwater dominates fracking practices in the Midcontinent area. There were no mentions of the use of higher-priced ceramics, likely in response to the current oil price.
    • Mid-Tier Service Provider: “Most operators are keeping costs down with lower-priced slickwater fracks and best negotiated deals possible. Sand volumes are the main variable now.”
  • Little Change Expected In Next Quarter Completions
    [See Question 2 on Statistical Review]
    ​All respondents expect to see little change as operators seem to be making few changes to horizontals and the use of slickwater downhole. Completion delays are mentioned as slowing, same as in other plays.
    • Completions Supplier: “We see very few changes in methodology occurring now except more use of dissolving plugs to save on drill outs.”
  • Spacing Remains Same In Current Practices
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 125 feet to 300 feet in the play. Standard plug and perf fracks average 250 feet between stages. One respondent said sleeve fracks are not as common but average 100 feet to 125 feet per stage.
    • Mid-Tier Service Provider: “Spacing hasn’t really changed much, but some operators are going to longer laterals and bigger sand volumes with these lower prices.”
  • 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 Midcontinent. However, all respondents do both plug and perf and sliding sleeve technology as needed by their clients. Three service providers report they specialize in the sliding sleeve coil fracks in the Midcontinent.
    • Completions Supplier: “We supply most products for well completion stages. Almost 10% of the cost for fracks is our supplies, with few real changes seen, except a growing demand for dissolvable plugs to save on drill outs.”
  • 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.
    • Top Tier Service Provider: “We have seen many smaller providers disappearing and our market share grow as financial pressure on providers deepens.”
  • Average Four Wells Per Pad
    [See Question 6 on Statistical Review]
    The average number of wells per pad is four among respondents. The rate at which a pad is drilled out has slowed as operators often slow the pace to one well at a time to conserve budgets, but many are no longer delaying completions when they drill.
  • Zipper Fracks Account For ~36% Of Completions; Solo Fracks Now Account For Lion’s Share
    [See Question 7 on Statistical Review]
    The percentage of zipper frack completions among respondents averages about 36%; the remaining 64% of wells are fracked individually. This higher number of solo fracks reflects the slowing pace of completions even on multi-well pads.
  • 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 10 million pounds per well among respondents. Respondents reported 20/40, 40/70, 30/50 and 100 mesh sand are all common. None reported using ceramics for completions.

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 the Midcontinent area. Participants included one frack supplies salesman and seven managers or sales persons with well service companies. Interviews were conducted during the third week of July 2015.

Part II. – Statistical Review

Downhole Completions

[Midcontinent]

Total Respondents = 8

[Frack Equipment Suppliers = 1, Frack Service Providers = 7]

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 spacing: 8

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

Spacing

Plug & Perf

Sliding Sleeve

200-300 feet

7

—

100-125 feet

—

1

Average:

~250 feet

~113 feet


3c. How are you fine tuning your frack program downhole?
Slickwater w/heavy loading of sand for each stage: 6
Dissolving plugs: 2

4. What fracking technique is most common in your area?
Plug and perf only: 5
Both sliding sleeves and plug and perf: 3

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: 6
Newer dissolving plugs: 2

6. What is the average number of wells being completed per pad in your area?

3-6 wells:

6

4 wells:

2

Average:

~4 wells per pad


7. What percentage of fracks drilled from pads are zipper fracks individual (solo) fracks?

Zipper Frack

Solo Frack

# Responses

30%

70%

1

75%

25%

2

50%

50%

4

10%

90%

1

Avg. 36%

Avg. 64%

8


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

3-5 million lbs:

2

6-10 million lbs:

4

10-30 million lbs:

2

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*:

100%

*Respondents reported 100 mesh, 20/40, 30/50, and 40/70 sand most common.

End Statistical Survey