Synopsis

It’s beginning to sound repetitive.

Tough macro-environmental factors stemming from weak commodity prices have operators focused only on the tried and true when it comes to well completions.

The Midcontinent is no different than any other domestic market: Operators have settled on slickwater plug and perf downhole completions.

Midcontinent service providers report some gel and resin-coated sand use in the deeper, hotter, higher-pressure Scoop and Stack plays. Otherwise, slickwater and plug and perf dominate the Midcontinent and have become the national standard for well completions.

Spacing averaged 215 feet between stages in the Midcontinent, but mostly ranged between 200 feet and 250 feet—as is the case in most domestic markets.

Zipper fracks fell to 44% of completions in April 2016, down from 52% in January, with one well completed on an average four well pad with the remaining wells postponed indefinitely.

Well rejuvenation efforts, including re-stimulation, re-completions, and refracturing, account for roughly 6% of completions, according to survey respondents. This is slightly higher than other regional markets, though entirely in the range of 4-6% of completions nationally.

Sand volumes are averaging 8 million pounds of mostly bulk commodity sand in the Midcontinent, on par with other domestic markets.

However, the Midcontinent is seeing a slightly higher percentage of gel and resin-coated sand applied downhole thanks the growing percentage of completions in the Scoop and Stack plays west of Oklahoma City.

Watch for the next Heard In The Field report on the Midcontinent downhole completions market in July 2016.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Completions Most Common
    [See Question 1 on Statistical Review]
    Respondents reported that slickwater continues to be the most common fracking process in the region. Two respondents reported a substantial use of gel and resin-coated sand in the deeper, hotter Scoop and Stack plays.
  • No Changes Expected During Next Six Months
    [See Question 2 on Statistical Review]
    All respondents expect few or no changes to their downhole completion practices in the near-term.
  • Spacing Between Frack Stages Averages 215 Feet
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing between frack stages averages 215 feet with ranges of 200 feet to 250 feet cited by respondents. All respondents have kept spacing about the same this year. Respondent continue to fine-tune frack programs downhole by utilizing large sand volume slickwater techniques.
    • Mid-Tier Service Provider: “Spacing is not changing at this time. We will likely be well into a recovery before operators begin to experiment with changes in spacing and methods.”
  • Plug And Perf Most Common Fracking Technique
    [See Question 4 on Statistical Review]
    ​Seven of eight respondents reported that plug and perf completions are the standard fracking technique in the region now. One respondent is using sliding sleeve and plug and perf equally in the region, however.
    • Top-Tier Service Provider: “While plug and perf is most common in the region, we have a niche client who causes our demand for sliding sleeve and plug and perf to be almost equal.”
  • Very Limited Emphasis On Refracks; New Technique Being Tried Downhole
    [See Question 5a and 5b on Statistical Review]
    ​A total of 94% of all frack jobs in the Midcontinent are done on new wells; the remaining 6% are refrack or remediation projects. One respondent said some clients are using a newer technique involving broadband fiber fracks and diverters, which is promoted by Schlumberger Ltd. (NYSE: SLB), to produce an efficient re-stimulation of previously fracked wells.
    • Mid-Tier Service Provider: “We have clients using our broadband fiber frack to get great results on both new wells and with re-stimulation efforts.”
  • Multi-Well Pads Average ~Four Wells Per Pad
    [See Question 6 on Statistical Review]
    ​Survey respondents report the average number of wells reported per pad at about four. Responses range from four to six wells per pad.
    • Mid-Tier Service Provider: “Four to six wells per pad is most often the plan, but not all wells are completed at once in this climate.”
  • Zipper Fracks Account For 44% Of Completions; Remainder Solo Fracks
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 44%, down from 52% reported in January. The remaining 56% of wells are fracked using the solo frack on one well at a time and are most common due to the slower pace of fracking activity. Solo fracks are up from 48% reported in January.
    • Top Tier Service Provider: “We seldom have the luxury of handling all the wells on a pad as a single contract now. The wells may be done one or two at a time.”
  • 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 8 million pounds per well, up somewhat from the 7 million pounds per well reported in January. Respondents reported 20/40, 40/70, 100 mesh are most common. A total of 91% of proppant reported is natural sand. Resin-coated sand is still common with some operators completing in the Scoop and Stack areas and accounts for about 9% of all fracks reported by respondents.
  • 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 with enhanced horizontal completions methods currently, same as 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 Midcontinent region. Participants were seven sales professionals with fracking service companies and one manager for an oil and gas operator. Interviews were conducted during mid-April 2016.

Part II. – Statistical Review

Downhole Completions

[Midcontinent]

Total Respondents = 8

[Fracking service providers = 7, Operators = 1]

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

Slickwater:

6

Hybrid:

2*

*Two respondents acknowledged slickwater is most common in region but reported using some gel and ceramics for completions.


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- to 225-foot spacing:

3

225- to 250-foot spacing:

5

Average spacing:

~215 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:

7

Equal demand for plug and perf and sliding sleeve:

1


5a. Looking at the number of total frack jobs in your area, what percentage are new fracks and what percentage are refracks?

New wells:

94%

Refrack or remediation:

6%


5b. Are there any new downhole tools being tried in your area?

Nothing new:

7

Broadband fiber frack:

1


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

4 wells:

5

4-6 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

60%

40%

1

25%

75%

1

30%

70%

1

Average 44%

Average 56%

8


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

8-12 million pounds:

6

6-8 million pounds:

2

Average per well:

~8 million pounds


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

Average Among Respondents

Natural sand only:

91%

Resin-coated sand:

9%*

*Mostly limited to Stack/Scoop completions.


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