Schlumberger’s HiWay Frac Design Improves Eagle Ford Well Performance

SLB Sees Higher Production & Lower Costs in the Eagle Ford
Schlumberger HiWay Channel Fracturing

Schlumberger HiWay Channel Fracturing | Click to Enlarge

Schlumberger’s (SLB) HiWay flow channel frack design has been most successful in the Eagle Ford. The company has completed a significant number of wells in the basin and has shown the design increases production while utilizing less proppant.

The production response has not been as positive in other plays, but the company generally sees flat to higher production with lower well costs. The advantage where production isn’t higher is the cost savings realized by using 40% less sand/proppant. [Read more…]

Forest Oil’s Eagle Ford Production Jumps 21% in the Second Quarter

Schlumberger JV Allows Forest To Drill More While Investing Less
Forest - Schlumberger Eagle Ford Acreage

Forest – Schlumberger Eagle Ford Acreage | Click to Enlarge

Forest Oil agreed to a joint venture with Schlumberger in the Eagle Ford during the second quarter and it didn’t take long for the company to increase its activity in the region. Forest Oil’s operated Eagle Ford production grew 59% to 4,300 boe/d and net production grew 21% to 2,300 boe/d during the second quarter.

The company completed nine Eagle Ford wells at an average initial production rate of 529 boe/d and well costs have fallen from $7 million in 2012 to $6 million in the quarter.

The first seven wells completed with Schlumberger’s HiWay flow channel technique were in various stages of completion at the end of the quarter. Watch for production results from these wells in the coming weeks. [Read more…]

What To Watch For In The Eagle Ford – Video

Motley Fool Video Discussing Stocks To Watch In South Texas

Short overview, then commentary discussing what to watch for from public companies in the Eagle Ford. [Read more…]

Forest Oil – Schlumberger Eagle Ford Development Agreement Inked

Less Acreage Means More Value For Forest In Deal Worth $3,300/Acre
Forest - Schlumberger Eagle Ford Acreage

Forest – Schlumberger Eagle Ford Acreage | Click to Enlarge

Forest Oil and Schlumberger have signed an Eagle Ford development agreement in Gonzales County, TX. Schlumberger will pay $90 million in the form of future drilling and completion services, as well as related development capital in order to earn a 50% interest in Forest’s Eagle Ford acreage position.

Once the $90 million has been contributed, Forest and Schlumberger will participate in future drilling on a 50/50 basis. Forest expects the drilling carry will contribute to development through 2014. [Read more…]

Lower Rig Count, But More Drilling in 2013 – Schlumberger – Halliburton

A Bounce in the Liquids Rig Count Is Expected

Drilling Rig ImageIn the company’s fourth quarter conference call, Schlumberger (SLB) executives stated they expect the active rig count will fall from the 2012 average, but there will be more wells drilled. SLB reviews its outlook for North America in its conference call each quarter. The company does expect the liquids rig count to increase in the first half of the year, but does not expect much if any recovery in natural gas drilling.

Paal Kibsgaard, CEO, stated, “But if you look at our view on 2013 for North America, we expect the U.S. land rig count to be up between about 100-150 rigs in Q1, and this is based on the feedback from our customers. Now in terms of activity for the full year, we still see U.S. land rig count slightly down versus 2012, while the well count will be slightly up.”

Halliburton is also expected to echo the same sentiment in its call today. The following statement was included in the company’s press release:

“In 2013, we anticipate the North America rig count will improve from fourth quarter levels but will be down slightly compared to 2012.”

Other notable items from the SLB call include:

  • Expects the liquids rig count to bounce up in the first quarter of 2013
  • Do NOT see a significant recovery in dry-gas drilling in 2013
  • Natural gas production remains strong
  • Hydraulic fracturing pricing is not expected to increase in 2013

As you hear locals begin to discuss rigs moving out of your area. Remember, a lower rig count does not mean there will be fewer wells drilled. Operators get more efficient over time and need fewer rigs to develop their acreage.

Eagle Ford Well Completed With LNG Powered Frack Pumps

Marks the First LNG Powered Frack Job Ever Completed

Onshore LNG Regas and Tanker

LNG Tanker and Regas Equipment | Click to Enlarge

LNG powered frack pumps were used to complete an Eagle Ford well in late 2012. We sat down with Ferus’ LNG rep Jed Tallman to learn more.

This was the first time LNG has ever been used to fuel pumps fracking a well. Field gas has been used by Schlumberger in the Horn River Basin of Canada, but LNG has never been used before.

Ferus is an oilfield service company that supplies cryogenic liquids as part of its offering. The company worked with Baker Hughes to test natural gas conversion technology and yard tested 10 Cummins QSK50 powered pumps. After a successful test, the companies took the pumps into the field to complete an Eagle Ford well south of Pearsall. [Read more…]