Synopsis

The East Texas/Northern Louisiana stacked Cotton Valley tight sands horizontal play has become the focus of activity in the traditional dry gas basins.

The activity increase in the Cotton Valley has offset declines in the Barnett and Fayetteville shales. Consequently, well stimulation service providers are reporting a switch away from traditional slickwater fracture stimulation to crosslink gel.

Slickwater still remains the predominate method with an 80% share, but has lost some ground to crosslink gel.

Basically operators are sticking with what provides results in a low commodity price environment, which includes: plug and perf; spacing between stages of 250 feet; and about 250,000 pounds of sand per stage, or roughly 5.7 million pounds per lateral.

Operators have also moved to enhanced completions on nearly 100% of regional wells.

About 63% of wells are completed using zipper fracks, which is not materially different than what service providers reported in April. However, the backlog of drilled but uncompleted wells is growing.

Watch for the next traditional dry gas basin report on downhole completions in the Barnett, Fayetteville, Haynesville and Cotton Valley shale plays in April 2016.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Dominates Completions
    [See Question 1 on Statistical Review]
    All eight respondents reported that slickwater is most used in the dry gas region and two respondents reported some wells are fracked using crosslink gel to reduce pressures. The increased use of crosslink gel was reported by respondents working mainly in the northern part of East Texas in the Cotton Valley Formation.
  • No Changes Expected In Near-Term
    [See Question 2 on Statistical Review]
    All respondents expect few or no changes in the near term. All reported the same methods are in use and there are few reasons to change until market conditions change.
    • Mid-Tier Provider: “Most areas have their unique methods, but little change is occurring as current methods get good results.”
  • Spacing Between Frack Stages Averages 254 Feet
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 200- to 300-foot in the play and averages about 254 feet. Seven of eight respondents have kept spacing about the same this year. One respondent is encouraging closer spacing as they have seen improved results with 200-foot spacing.
    • Mid Tier Operator: “We see most clients using 250- to 300-foot spacing and 200,000 to 300,000 pounds of sand per stage.”
  • 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 region now. None of the respondents are using sleeve technology currently.
    • Mid-Tier Service Provider: “Plug and perf remains the method of choice in the region. Few operators ask for sliding sleeves currently.”
  • 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. No new downhole tools or methods are reported in the play.
    • Mid-Tier Operator: “There are no new methods since we started the enhanced sand volume completions. It works…”
  • Multi-Well Pads Average 3-4 Wells Per Pad
    [See Question 6 on Statistical Review]
    Average number of regional wells reported per pad is about four. All report three to four well pads are most common.
    • Mid-Tier Operator: “We still see smaller multi-well pads currently. If the price recovers, we may go bigger and longer, but it is stable for now.”
  • Zipper Fracks Account For 68% Of Completions; Solo Fracks Account For Remainder
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 68%, somewhat similar to findings in the April report. The remaining 32% of wells are fracked using the solo frack on one well at a time.
    • Mid-Tier Operator: “Zipper fracks are used, but on fewer wells at a time since drilling and completions has slowed considerably.”
  • 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 5.6 million pounds per well. This is a decrease of about 2 million pounds of sand per well since the April report. This difference is mainly because respondents were working more in the Cotton Valley play, which requires less than the Haynesville Shale, which was highlighted in the April report. Respondents reported 40/70 sand and 100 mesh are most common. Some mention was made of 30/50 sand. A total of 94% of proppant is natural sand, about 5% is resin-coated sand and 1% ceramic.
  • Virtually All Horizontal Completions Are Now Enhanced Completions
    [See Question 9a and 9b on Statistical Review]
    All respondents reported that nearly all horizontal completions involve enhanced methods now. Enhanced completions were described by respondents as having increased sand volumes, longer laterals, the use of gel and/or resin-coated sand in high pressure wells, and three to four perf sets per stage. Few changes have occurred even with low oil and gas prices because the enhanced methods drive efficiency.

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 dry gas region. Participants include six sales professionals with well service companies, one completions consultant and one engineer for an E&P company. Interviews were conducted during third week of September 2015.

Part II. – Statistical Review

Downhole Completions

[Dry Gas Region]

Total Respondents = 8

[Fracking Service Providers = 6, Operators = 2]

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

Slickwater:

8*

*Two mentions were made of using some crosslink gel to reduce pressures on slickwater fracks.


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 300-foot spacing:

8

Average spacing:

~254 feet


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

Large sand volume slickwater:

6

Using some crosslink with some resin-coated sand:

2


4. What fracking technique is most common in your area?

Plug and perf:

8


5a. Would you characterize the supply of downhole tools in your area as excessive, sufficient or insufficient to meet late 2015 demand?

Sufficient:

8


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:

4

4-6 wells:

2

6 wells:

2

Average:

~5 wells per pad


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

Zipper Frack

Stack Frack

# Responses

75%

25%

3

80%

20%

2

60%

40%

1

50%

50%

2

Average 68%

Average 32%

8


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

4-5 million pounds:

3

5-6 million pounds:

5

Average per well:

~5.7 million pounds


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

Average Among Respondents

Natural sand* only:

94%

Resin-coated sand:

5%

Ceramics:

1%

*Sand Usage:

  • 40/70 most common;
  • 100 mesh second most common; and
  • 30/50 some mention.


9a. Looking at the entirety of completions in your area, how many would you estimate to be “enhanced completions?” How would you best describe what an “enhanced completion” entails in your area?

All respondents say 100% of horizontal completions are enhanced by high sand volumes. Several also describe using some gel and resin-coated sand to enhance results.


9b. How many perforation clusters are typical between stages? Is that more or less than six months ago?

All respondents answered that perforation clusters are within the range of three to four sets per stage with none reporting an increase compared to six months ago.


End Statistical Survey

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