Enhanced Completions Intro

Enhanced completion techniques are driving new fields, reviving old fields, and benefitting bottom lines for oil and gas producers in the U.S.

Since enhanced completions first began as a general practice in the Eagle Ford Shale in early 2012, technology has evolved to include predictive analytics, microseismic and far-field and near-wellbore diverters to pump more proppant for longer laterals and drill deeper wells.

New completion technique by Devon Energy Corp. (NYSE: DVN) resulted in a monster well in the Stack play in Kingfisher County, Okla. Devon said July 11 that its #1HX Privott well was tested in the Upper Meramec flowing at a facility-constrained peak rate of about 3,000 barrels (bbl) of oil and 18 million cubic feet of gas per day (MMcf/d) from a 10,000-ft lateral.

Additionally, longer laterals, precision targeting and advanced completions helped to push EOG Resources Inc.’s (NYSE: EOG) first-quarter 2017 crude oil volumes and will likely result in additional growth.

“EOG’s Whirling Wind wells shattered industry records in the Permian Basin,” CEO Bill Thomas said in May. “Our advanced technology and proprietary techniques are leading to break-through well performance across our diverse portfolio of premium plays.”

In the Haynesville, enhanced completions have allowed oil and gas operators to boost production in deeper gas projects while keeping well costs flat in the $9 million range.

In September, Bill Barrett Corp. (NYSE: BBG) said it will raise its 2017 production guidance range by 4% to 6.4 million to 6.6 million barrels of oil equivalent due to the Denver-based company’s enhanced completion program in the Denver-Julesburg Basin and a Uinta Basin oil program.

In Prudhoe Bay, an additional 3 billion bbl so far have been unlocked through oilfield technology innovations and has been a proving ground for advanced drilling techniques, including multi-lateral and coiled tubing, BP Plc (NYSE: BP) said in June. The original estimated recovery for Prudhoe Bay was 9.6 billion bbl.

Midland Basin Activity Highlights

Midland Basin Activity Highlights Map: October 2017

1. Ring Energy: 10/13/17

Midland, Texas-based Ring Energy Inc. (NYSE AMERICAN: REI) received permits to drill three vertical San Andres tests in the Midland Basin in Gaines County, Texas (RRC Dist. 8A.), according to IHS Markit.

The #1 Ve test well is on a 640-acre lease in Section 239, Block G, WT RR Co. Survey, A-307. The proposed total depth is 7,000 ft and the wildcat could be completed in the San Andres, Wasson or ODC Field.

About 9 miles to the south, #1 Villi will be drilled in Section 121, Block G, WT RR Co. Survey, A-248. The 7,000-ft test will target San Andres in G-M-K West Field.

Roughly 2.5 miles further to the southeast is the proposed #1 Vor in Section 93, Block G, WT RR Co. Survey, A-234. The wildcat will also be drilled to 7,000 ft with a San Andres target in G-M-K West Field. The #1 Vor is generally south of G-M-K West Field, a San Andres oil pool that has produced almost 2 MMbbl of crude and 390.8 MMcf of gas since 1998.

2. Sabalo Energy: 9/8/17

Sabalo Energy LLC, based in Corpus Christi, Texas, completed an extended-lateral horizontal producer in the Spraberry Trend in Howard County, Texas (RRC Dist. 8).

The #1AH Thumper 14-23 is on a 636.1-acre Midland Basin lease in Section 11, Block 32 T2N, T&P RR Co. Survey A-268. It was tested pumping 1,241 bbl of 40.2-degree-gravity crude, 6.97 MMcf of gas and 1,985 bbl of water daily from acidized and fracture-stimulated perforations at 7,820 ft to 17,925 ft. The well was drilled to 18,018 ft. The horizontal leg bottomed two miles to the southeast in Section 23 at a true vertical depth of 7,263 ft. The new producer offsets the company’s northwest-trending #1SH Mr. Phillips 11-2.

3. Smith Energy Operating: 8/16/17

A Spraberry well in Dawson County, Texas (RRC Dist. 8A), was completed by Smith Energy Operating Co. in the Midland Basin, according to IHS Markit.

The #1 Pierce 14 well initially flowed 100 bbl of 36-degree-gravity crude and 23,000 cubic ft of gas per day from acidized perforations at 7,762-80 ft. The well was drilled to 7,987 ft and is on a 260-acre West Texas lease in the CMI Field in Section 14, Block M, EL&RR Co. Survey, A-1258, and was plugged back to 7,952 ft.

To the northeast in the same section in the CMI Field, #1 Riddel 14 was completed in July. One-half-mile to the south is shallow San Andres oil production in the MTS Field. Smith Energy Operating is based in Lubbock, Texas.

4. Maverick Oil and Gas: 8/16/17

Maverick Oil and Gas Inc. completed a second well at its Hazel project in the Tom Green County, Texas (RRC Dist. 7C), portion of the Midland Basin, which the New Braunfels, Texas-based company said confirms the project’s second horizontal bench.

The #2 Flying B Ranch is currently testing at about 20 bbl of oil per day with associated gas. The vertical well is producing from Lower Wolfcamp A/Upper Wolfcamp B sections. It was drilled and cased to 6,550 ft and is in Section 86, Block 6, H&TC RR Co. Survey, A-8472.

Results from the first two Flying B Ranch wells have established the Lower Dean/Upper Wolfcamp A and the Lower Wolfcamp A/Upper Wolfcamp B zones. A Leonard Shale interval in #2 Flying B Ranch will be fractured and tested next in an attempt to prove up a third horizontal bench.

To the southwest, Maverick’s #1 Flying B Ranch was tested in 2016 pumping 21 bbl of 39.8-degree-gravity crude per day from fracture-treated Wolfcamp perforations at 5,678 ft to 5,758 ft. The 6,470-ft Garden City South well was completed using a single-stage fracturing.

5. SM Energy: 8/02/2017

Two offsetting horizontal Midland Basin completions were reported by Denver-based SM Energy Co. (NYSE: SM) in Howard (RRC Dist. 8) in Section 8, Block 34 T1N, T&P RR Co. Survey, A-1339.

The #1H Top Gun flowed 1,679 bbl of 38.9-degree-gravity oil, 959,000 cubic ft of gas and 1,115 bbl of water per day from Wolfcamp in the Spraberry trend. The well was drilled to 16,530 ft, 8,156 ft true vertical, and it bottomed to the southeast in Section 17. Production is from a fractured zone at 8,661 ft to 16,259 ft.

The shallower #2H Top Gun was tested flowing 1,174 bbl of 38.9-degree-gravity crude, 803,000 cubic ft of gas and 3,222 bbl of water per day from fracture-stimulated perforations at 8,237 ft to 15,942 ft in Spraberry. It was drilled to 16,025 ft and the true vertical depth is 7,670 ft.

6. Maverick Oil and Gas: 7/11/17

Maverick Oil and Gas completed the first well in its first Hazel prospect in the Midland Basin in Tom Green (RRC Dist. 7C).

The Wolfcamp producer, #1 Flying B Ranch, was tested pumping 21 bbl of 39.8-degree-gravity crude per day from fracture-treated perforations at 5,678 ft to 5,758 ft. It was drilled to 6,470 ft well and completed using single-stage fracturing. The Garden City South Field well is on a 640-acre West Texas lease in Section 73, Block 6, H&TC RR Co. Survey, A-1005.

A second well was drilled within 1.5 miles to the northeast at #2 Flying B Ranch but no details are available from production tests of Lower Wolfcamp, according to IHS Markit. The vertical well was drilled to 6,550 ft and is in Section 86, Block 6, H&TC RR Co. Survey, A-8472. Oil shows were reported in Wolfcamp A and B, Leonard and Dean.

7. Smith Energy Operating: 7/6/17

In the Midland Basin, Smith Energy Operating completed an oil producer in Dawson (RRC Dist. 8A).

The Spraberry venture, #1 Riddel 14, pumped 73 bbl of 36-degree-gravity crude and 17,000 cubic ft of gas per day, with no water, from acidized perforations at 7,751 ft to 58 ft and 7,760 ft to 64 ft. It was drilled to 7,950 ft and 5 1/2-in. pipe was set on bottom. The CMI Field well is on a 40-acre lease in Section 14, Block M, EL&RR Co. Survey, A-1258. Within one mile to the south is shallow San Andres oil production in MTS Field.

Larry Prado, activity editor, can be reached at lprado@hartenergy.com.