Synopsis

Like the weather, everyone in the traditional dry gas basins are talking refrack. However, few are doing anything about it.

A percentage of operators are employing gels and ceramics to offset high temperature and high pressure in the Haynesville Shale. Otherwise, it’s strictly slickwater in the Barnett, Fayetteville and Haynesville shales as operators focus on efficiency and cost control.

A majority of operators have settled on a basic completion recipe that incorporates slickwater plug and perf on spacing of about 250 feet between stages, coupled with high proppant loading that currently averages 7.7 million pounds of sand.

While there had been discussion about the opportunity for refracks in both the Haynesville and the Barnett, those programs have been put on hold because of the low commodity price environment. This includes Devon Energy Corp.’s (NYSE: DVN) widely discussed refrack effort in the Barnett Shale.

Dry gas basin operators are following the same trends evident in other regions, including a steep decline in zipper fracks to just 44% of the market, down from 69% six months ago, as operators slow the pace of completions.

Watch for the next Heard In The Field report on the dry gas basin downhole completion market in September 2016.

Part I. – Survey Findings

Among Survey Participants:

  • Slickwater Completions Most Common
    [See Question 1 on Statistical Review]
    All respondents reported slickwater stimulation is most common in the traditional dry gas basins. Two respondents reported a preference for gel and ceramics in the deeper, hotter Haynesville Shale.
  • No Changes Expected In Near-Term
    [See Question 2 on Statistical Review]
    All respondents expect few changes in downhole completions near-term.
    • Mid-Tier Provider: “Most activity remains lower cost slickwater fracks and plug and perf stages with high sand volumes.”
  • Spacing Between Frack Stages Averages 238 Feet
    [See Questions 3a, 3b, 3c on Statistical Review]
    ​Spacing ranges between 200 feet to 300 feet in the play and averages about 238 feet. All respondents have kept spacing about the same this year.
    • Mid-Tier Operator: “No one seems to be changing spacing or design and there is a strong effort to keep costs as low as possible without losing efficiency gains.”
  • 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. No current respondents are using sliding sleeve in the region.
    • Top-Tier Service Provider: “The slickwater frack remains most common here unless completing in the deeper high pressure Haynesville Shale.”
  • Very Little Action On Refrack At Current Price
    [See Question 5a and 5b on Statistical Review]
    ​Most regional frack jobs are new fracks. Refracks account for very little work in the area. Two respondents mentioned that Devon Energy is delaying the launch of a much discussed refrack program in the Barnett until the economics improve. No new refrack tools are reported in the play.
    • Mid-Tier Operator: “Devon has recently decided to delay launching their Barnett refrack effort until prices improve.”
  • Multi-Well Pads Average ~4 Wells Per Pad
    [See Question 6 on Statistical Review]
    ​Service providers say the average number of wells reported per pad is about four. Reports range from three to six well pads in the region.
    • Mid-Tier Operator: “Three to four wells per pad is most common, but most are completed as solo wells currently.”
  • Zipper Fracks Account for 44% Of Completions; Solo Fracks Account For Remainder
    [See Question 7 on Statistical Review]
    ​The percentage of zipper frack completions reported among respondents is 44%, down from 69% in the September report. The remaining 56% of wells are fracked one well at a time due to low commodity prices.
    • Top-Tier Operator: “We would love to get back to fracking four well packages, but that is not common currently.”
  • 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 7.7 million pounds per well, less than reported in September 2015, but about the same as reported a year ago. Respondents reported 20/40, 40/70, 100 mesh as most common. A total of 95% of proppant reported is natural sand. Ceramic is still in use with two operators along with gel when fracking high temperature high pressure Haynesville wells.
  • 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 with little expectation of change.

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 Barnett, Fayetteville, Haynesville and East Texas market. Survey participants included eight sales professionals with fracking service companies. Interviews were conducted during late March 2016.

Part II. – Statistical Review

Downhole Completions

[Dry Gas Basins]

Total Respondents = 8

[Fracking service providers = 8]

1. What common practices are used in your area for completions? (Some respondents gave more than one answer.)

Slickwater:

8

Hybrid:

2*

*Two respondents acknowledge slickwater is the most common in region but some use gel and ceramics in the Haynesville.


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- to 300-foot spacing:

2

200- to 250-foot spacing:

6

Average spacing:

~238 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:

8


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

New wells average:

99%

Refrack or remediation average:

1%


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?

3-4 wells:

6

4-6 wells:

2

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%

3

50%

50%

4

30%

70%

1

Average 44%

Average 56%

8


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

8-12 million pounds:

4

6-8 million pounds:

4

Average per well:

~7.7 million pounds


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

Average Among Respondents

Natural sand only:

95%

Ceramics:

5%*

*Mainly limited to Haynesville 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

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