Eagle Ford Oil & Gas Completion Technology - HAL - SLB - GFS.TO

GasFrac Photo
GasFrac Photo

Eagle Ford completion technology is evolving as it needs to if operators want to remain competitive. Operators have lots of theories, but the proof is in the pudding. Drilling and completing wells is the only real way to test new technologies.  That technology is needed as we experience rising service costs, along with natural gas prices of $4 per mcf and oil prices that look to be below $90 for the foreseeable future. $90 a barrel isn't bad, but it isn't $100.

Petrohawk was the first to announce a major change in completion technology by using Schlumberger's Hi-way Frac system. SLB refers to it as "HiWay Flow Channel Fracturing". Fancy name and all, nobody really cares unless it delivers. For Petrohawk, it looks to have done just that. Petrohawk had utilized hiway fracs in 12 wells that had a production history of 90 days or more as of June. Those 12 wells had produced 32% more at a pressure 42% higher than other wells with a choke (18/64ths). More production at a higher pressure is about as good as it gets. The higher pressure indicates better overall communication, which is great in tight shale rocks. We'll hear more about hiway fracs as operators test it in other parts of the Eagle Ford and in other plays. Read more on Schlumberger's HiWay Flow Channel Fracturing at www.slb.com [ic-c] The other service companies are not slouches, and are working the technology game too. Halliburton is pushing for speed and has lowered completion times by as much as two days with its "Delta Stim" completion service. Multiply two days per well over 100s of wells per year and you begin saving alot of money. Across 182 wells per year, that's an extra well on production for a full year! Days and hours count in the oil & gas game. If you're offering, I'd be just fine with an extra year of production from an Eagle Ford well.

A GasFrac completion in Maverick County is being tested for Jedela Operating. The results will be interesting to watch as GasFrac's technology is more commonly used in Canada where the company was founded. The idea is interesting. If you can sell your flowback fluids or gas, you might only be out the costs of getting it there. If you're in a drought and have to spend top dollar for water, it gets even more compelling. If better production rates and quicker completions prove true, you'll likely end up with a winning combination. Read more at GasFrac.com.

R.T. 

Propane Frack Test in Maverick County - Jadela, Gasfrac, Packers Plus

A propane frack or LPG frack was completed yesterday by Jedela Oil Corp in conjunction with Gasfrac and Packers Plus in the Eagle Ford Shale of Maverick County, TX. Watch for results from this well as it will be an early indicator of whether or not propane fracks can provide upside to current economics in the Eagle Ford Shale. LPG (liquified petroleum gas) or propane fracks will also gain more interest if the drought continues in South Texas. In a few cases, we've heard of operators drilling $500,000+ water wells to ensure delivery of hydraulic fracturing fluids. While the process is often referred to as a "propane frack", an "LPG Frack" is more correct. The fluid is usually more than 90% propane, but will include ethane, propylene, butane, and some heavier hydrocarbons. A few of the benefits of LPG fracks versus hydraulic fracturing completions include: 

  • LPG's are more compatible with the formation's gas
  • Quicker completions, with no flow back water
  • Reduced formation damage
  • Costs savings where water isn't abundant

Jadela Oil Corp. (CA:JOC), GASFRAC Energy Services Inc. (CA:GFS) and Packers Plus Energy Services Inc. are pleased to announce that on August 21, 2011, Jadela completed fraccing its El Indio #1-H well into the Eagle Ford shale formation on its property located in Maverick County, Texas. Jadela used a Packers Plus StackFRAC(R) Open Hole Multi-Stage completion liner system and fracced the well using propane/butane and sand instead of water. GASFRAC provided the pumping horsepower and its stimulation technology in conjunction with Jadela's operational expertise.

Jadela has not tested the well. Testing will occur this week and it is expected that the well will be shut in pending construction of the propane recycling equipment and well site facilities. Jadela is in the process of outsourcing the construction of a pipeline, permanent battery equipment and the pipeline hookup to a 6" inch pipeline close by operated by West Texas Gas. The well was drilled and completed on a "tight hole" basis and as such specific well information is not available to the public at this time.

Read the full news release at jadelaoil.com