Synopsis

The pace of completions continues to slow in the Bakken Shale, which may be the hardest hit market in the domestic oil shale business.

Furthermore, few participants in Hart Energy’s market survey expect things will change until sustained oil prices rise above $50.

As in other oil shale plays, operators have grown conservative, sticking with tried and true recipes that include slickwater completions, closer stage spacing, which averages 300 feet in the Bakken, about 7.5 million pounds of bulk commodity sand per lateral, and plug and perf.

Proppant volume has stabilized over the last six months after a period of growth as operators turned to high density completions.

Bakken operators face the same problems operators face everywhere: $30 oil does not work economically. Some well remediation is underway with ongoing discussion about refracks, including experimental work testing more effective tools for isolation and diversion. However, few actual refracks are happening in the market.

Similarly, there has been experimentation with sliding sleeves, but actual use, when it occurs, is an outlier as operators opt for less expensive slickwater and plug and perf completions.

Operators are opting for six wells per pad, though some service providers tell Hart Energy that a few have moved to eight wells per pad.

While operators may drill six wells on a pad, they are completing just one or two of the laterals. Zipper fracks, a proxy for batch completions, remains unchanged over the last six months at 41% of completions.

Watch for the next Heard In The Field report on the Bakken downhole market in May 2016.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Completions Most Common
    [See Question 1 on Statistical Review]
    Seven of eight respondents reported that slickwater completions are the most common in the region. However, one respondent reported using gel for hybrid completions. Drilling and completion of horizontal wells continues to decline in the Bakken, according to respondents.
  • No Changes Expected In Near-Term
    [See Question 2 on Statistical Review]
    ​All respondents expect few or no changes in the near term. Sand volumes and fracking methods are staying the same compared to six months ago, though completions are occurring at a much slower pace.
    • Mid-Tier Provider: “There is no pressure to change tactics for production, but low oil prices are making drilling and completion at a profit impossible.”
  • Spacing Between Frack Stages Averages 305 Feet
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 250 feet to 350 feet in the play and averages about 305 feet. All respondents have kept spacing about the same this year.
    • Mid-Tier Operator: “No real change is sought in how we complete. We just need about $50 oil for it to make sense.”
  • 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 Bakken now. One respondent reported using an occasional sliding sleeve job for one client.
    • Top-Tier Service Provider: “Slickwater fracks with lots of sand work well, but not at today’s price.”
  • Even Refracks Make Little Sense At Current Oil Price
    [See Question 5a and 5b on Statistical Review]
    ​Respondents reported that the actual implementation of refrack is unusual in today’s market, but some remediation is happening. No new refrack tools are reported in the play though one operator reported a sister company developing tools and methods for refracking.
    • Mid-Tier Operator: “There is a new system being developed for refrack, but it has not been deployed widely yet.”
  • Multi-Well Pads Average ~6 Wells Per Pad
    [See Question 6 on Statistical Review]
    Average number of wells reported per pad is about six with reports ranging from six to eight wells per pad in the region.
    • Mid-Tier Operator: “Six wells per pad is most common, but we are seeing them completed mostly one at a time.”
  • Zipper Fracks Account For 43% Of Completions; Solo Fracks Account for Remainder
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 43%, similar to the 41% reported in November. The remaining 57% of wells are fracked using the solo frack on one well at a time.
    • Top-Tier Operator: “Zipper fracks are still used on two or three wells, but solo completions are most common now.”
  • 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 7.5 million pounds per well, slightly higher than what was reported in November. Respondents reported 40/70, 100 mesh and 30/50 are most common. A total of 95% of proppant reported is natural sand. Ceramic is still in use on 5% of wells, according to a completions consultant.
  • 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 on current enhanced horizontal completions with no expectation of change in the near-term.

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 Bakken region. Participants include four sales professionals with frack companies, one consultant, one equipment supplier, and two representatives with E&P companies. Interviews were conducted during mid-February 2016.

Part II. – Statistical Review

Downhole Completions

[Bakken Shale]

Total Respondents = 8

[Fracking service providers = 4, Consultants = 1,
Supplier = 1, Operators = 2]

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

Slickwater:

7

Hybrid with ceramics:

1*

*One respondent acknowledges slickwater most common in region but uses hybrid with ceramics.


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?

250-350-foot spacing:

1

300-foot spacing:

4

300-325-foot spacing:

3

Average spacing:

~305 feet


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

Large sand volume slickwater:

7

Prefer using hybrid gels and some ceramics:

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 percent are new fracks and what percent are refracks?

New wells average:

98%

Refrack average:

2%


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

Nothing new:

7

New system in development:

1


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

6 wells:

6

6-8 wells:

2

Average:

~6 wells per pad


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

Zipper Frack

Solo Frack

# Responses

40%

60%

3

50%

50%

4

25%

75%

1

Average 43%

Average 57%

8


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

2-6 million pounds:

1

6-10 million pounds:

7

Average per well:

~7.5 million pounds


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

Average Among
Respondents

Natural sand* only:

95%

Premium proppant (ceramic):

5%

*Sand usage: 40/70, 100 mesh and 30/50 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 said 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