Frac Hits: We Can STOP Them Presented To: Presented On: Friday, May - - PowerPoint PPT Presentation

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Frac Hits: We Can STOP Them Presented To: Presented On: Friday, May - - PowerPoint PPT Presentation

Aug 12, 2023 45 likes •269 views

Frac Hits: We Can STOP Them Presented To: Presented On: Friday, May 31 st , 2019 Presented By: Bruce L. Randall Owner Coiled Tubing Specialties, LLC Outline 1. The Premise 2. The Problem 3. The Paradigm 4. The Protections 5. The

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Frac Hits: We Can STOP Them

Presented To: Presented On: Friday, May 31st, 2019 Presented By: Bruce L. Randall Owner

Coiled Tubing Specialties, LLC

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Outline

  • 1. The Premise
  • 2. The Problem
  • 3. The Paradigm
  • 4. The Protections
  • 5. The Pitch

Bruce L. Randall / Coiled Tubing Specialties, LLC

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PROPERTY ‘HIT’: Loss(es) of…

  • Production
  • Reserves(?)
  • Cap Ex(?)
  • Leasehold(?)
  • Collateral / Borrowing

Base(?)

“Weak Side”

  • Weaker Pore Pressures
  • Weaker Rock Fabric (Stress Profile)
  • Weaker Fluid (Hydrocarbon) Saturations
  • Weaker Remaining Reserves

Frac Hit Terminology: It’s Just like FOOTBALL

Horizontal “Child” Well Path-of-least- resistance RESERVES ‘HIT’: A loss of Production & Reserves from where Horizontal Well’s Frac Stage “X” did not go (i.e., to the “Strong Side”) Vertical “Parent” Well

“Strong Side”

  • Stronger Pore Pressures
  • Stronger Rock Fabric (Stress Profile)
  • Stronger Fluid (Hydrocarbon) Saturations
  • Stronger Remaining Reserves
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1. The Premise

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“With current horizontal well completion practices, what we’ve accomplished is this: We’ve become very EFFICIENT at stringing together a bunch of very INEFFECTIVE frac’s (in some very lousy rocks) up & down the lateral.”

F&D = $48-50/BOE

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2. The Problem

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The DIRECTIONAL Problem: Frac “Hit” by Child’s hits ‘Parent’ wellbore and leads to …

1) Either a diminishment…or total loss of the “hit” Parent wellbore’s production/reserves. (Typically requires a relatively expensive workover to recapture what reserves are still recoverable.) 2) A loss of at least (and typically greater than) HALF of the production/reserves that “SRVn” (the Stimulated Reservoir Volume created and connected to the Child well from Frac Stage #”n”) was intended to capture. (Poses an immediate reserves “write-down”.)

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N S E W

…and not only have we no DIRECTIONAL control of our fracs… Problem Observation 2.B: We have no DIMENSIONAL control of our fracs, EITHER.

Little W coverage in stages 1,2,&5… NONE in stage 7 Do I have to drill another (W-offset) well here??? Little “H/B Layer C” coverage in stages 1,2

Example: Haynesville

SPE 131783; Curry, et al; 2010

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2. The Problem of Frac Hits…

  • A. …is a Directional Problem
  • B. …is a Dimensional Problem
  • C. …is a Dollars Problem
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Well #1 Well #2

FRAC HIT into Well #1 from Well #2’s Frac Stage “X” FRAC HIT into Well #1 from Well #2’s Frac Stage “Y” RESERVES ‘HIT’ from where Well #2’s Frac Stage “Y” didn’t go RESERVES ‘HIT’ from where Well #2’s Frac Stage “X” didn’t go

We believe that this… Frac Hits: “We Just Don’t Know What We’re Missing!”

[Spoiler Alert: It’s Our Reserves Estimates.]

…causes this…

Oil Markets

Fracking’s Secret Problem—Oil Wells Aren’t Producing as Much as Forecast …analysis reveals thousands of

locations are yielding less than their

  • wners projected to investors…
By B. Olson, R. Elliott, & C. M. Matthews

January 2, 2019

… so, we filed this..…

UNITED STATES NON-PROVISIONAL PATENT APPLICATION FOR:

METHOD FOR AVOIDING FRAC HITS DURING FORMATION STIMULATION INVENTORS:

RANDALL, BRUCE L. RANDALL, BRADFORD G. BRISCO, DAVID P.

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"It’s Terrible Out There": Lack Of Greater Shale Fools Leaves Private Equity In A Bidless Panic

by Tyler Durden Thu, 01/24/2019

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By Kurt Cobb

  • Jan 28, 2019, 4:00 PM CST

The bad news coming out of the shale oil fields of America could all be put down to slumping oil prices. That is certainly a big factor. But as investment professionals like to say, when the tide goes out, we all find out who's been skinny-dipping. The pattern of negative news from shale country is not just related to price, however. Oil production, it seems, is being overstated industry-wide by 10 percent and 50 percent in the case of some companies, according to The Wall Street Journal.

Is The Permian Bull Run Coming To An End?

Top U.S. Shale Oil Fields Decline Rate Reaches New Record…. Half Million Barrels Per Day (per month)

POSTED BY SRSROCCO IN ENERGY, NEWS JULY 25, 2018 https://srsroccoreport.com/

Conclusion: E&P’s Unconventional ‘Report Card’ from Wall Street is not looking too good!

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“…drillers try to outrun the treadmill of precipitous well declines… …since 2012…

  • average lateral lengths have increased 44% to over 7,000 feet...
  • the volume of water used …has surged more than 250%…
  • In 2018, …$70 billion on drilling 9,975 wells …with $54 billion …spent on tight oil plays
  • …70% served to offset field declines and 30% to increase production
  • “Technology improvements appear to have hit the law of diminishing returns in terms of increasing production—

they cannot reverse the realities of over-crowded wells and geology,” Hughes said.

  • …the Permian requires 2,121 new wells each year just to keep production flat, and in 2018 the industry

drilled 4,133 wells, leading to a big jump in output. …increase in water and frac sand “have reached their limits.” BLR’s Question: How many of those 4,133 wells will never reach Pay Out??? …due to “well interference”?

…leading some to ask: “Is the party over?”

The Shale Boom Is About To Go Bust May 09,

2019, 6:00 PM CDT; by Nick Cunningham / J. David Hughes, Post Carbon

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Does anyone doubt horizontal wellbores’ lateral lengths continue to get longer and longer??? 63 813

From: Long game: Reliable, interventionless completions for toe stages; Travis Harris, Packers Plus Energy Services; World Oil; April 2019

  • Fig. 1. Number of wells completed in the

Permian basin with lateral lengths greater than 10,000 ft. Greater use of

longer laterals presents completion challenges. Chart: DrillingInfo.

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If you’re losing a nickel a bail, perhaps the answer is NOT to “Haul more hay.”

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  • 3. The Paradigm (Shift)
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The New York Times, Dec. 21, 2013

https://www.nytimes.com/news/the-lives-they-lived/2013/12/21/george-mitchell/

“(George) Mitchell’s fracking technique is so far the most important, and the biggest, energy innovation of this century.”

  • -Daniel Yergin

Leading Energy Industry Scholar and Expert Pulitzer Prize Winner Author: The Prize; The Quest; The Commanding Heights

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The “Offensive” Solutions

RRe-inventing completion design

from the inside out

REliminating frac hits through frac

steering

RIncreasing exposure to “strong

side” reservoir rock

RLeveraging rock mechanics to optimize frac effectiveness RUltra Deep Perforations-UDP’s (1.5” x 100, 200,…300’)

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4. The Protections

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Comparing Depletion Mitigation (i.e. “Defensive” Frac Hit) Strategies

  • Do Nothing
  • Parent Well: Highest risk of cleanouts, sand loading, and reduced production.
  • Child Well: Underperforms 20-40% compared with parent production.
  • Small Volume Preload and Active Pushback (may involve chemical remediation)
  • Parent well: Protected from cleanouts.
  • Child Well: Underperforms 20-40% compared with first order offset well.
  • Large Volume Parent Preloads
  • Parent Well: Minimal reserve loss, parent fracture network protected.
  • Child well: Underperforms by 15-35% compared with first order offset well.
  • Recharge Parent
  • Parent well: Elevates protective reservoir stress and pressure.
  • Child well: Improves first order offset well performance and mitigates frac asymmetry.
  • Refracture Parent
  • Parent well: Elevates protective reservoir stress and pressure, adds incremental reserves.
  • Child well: Optimal first order offset well performance.

“To Solve Frac Hits, Unconventional Engineering Must Revolve Around Them”, Trent Jacobs, JPT Digital Editor | 08 February 2019

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Playing Defense… for Vertical “Parent” Wells:

  • Question #1: How many wells do you have for

which pumping even just a 100 bbl “cure” into them would be about as bad as the “disease” of a potential frac hit?

  • Question #2: How many wells do you have for

which even loading the hole would send your fluid on a screaming vacuum? …perhaps even creating new frac’s in the pay zone?

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5. The Pitch

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Questions?