Schlumberger's HiWay Frac Design Improves Eagle Ford Well Performance

Schlumberger HiWay Channel Fracturing

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.

Paal Kibsgaard, CEO, stated "We believe its (HiWay Frac's) applicable in every basin"

Also read: Forest - Schlumberger JV Allows Forest to Drill More With Less

Record North American Revenue

Schlumberger reported strong results in the third quarter. The company's North American revenue was up 7% and set an all time high at $3.6 billion.

The company did see downward pricing pressure, but less than it has experienced in prior quarters.

Schlumberger also discussed ongoing tests to increase the utilization of perforation clusters in completions. Prior tests have shown that 30-70% of perforation clusters do not contribute to production. The company is testing a diversion technology that is employed during the completion. Watch for future announcements from Schlumberger and other oilfield service providers.

If possible, it's in everyone's best interest to increase well performance by 30-70%.

Chesapeake's Eagle Ford Performance Drives Oil Production Guidance Increase

Chesapeake Energy Oil Gas Production Graph

Chesapeake has increased it oil production guidance for the year by 1 million barrels to 38-40 million barrels as more wells have come online in the Eagle Ford.

The companyconnected 140 wells to sales in the second quarter and averaged production of 190,000 gross (85,000 net) boe/d. Approximately 66% or almost 57,000 b/d of the production stream is crude oil. The number of wells brought to sales is up from 111 in the first quarter and production is up 14% from that period.

“We are raising our full-year 2013 oil production guidance by 1 million barrels (mmbbls) to 38 – 40 mmbbls, representing a growth rate of 22 to 28% year over year, due to good well performance,an accelerated pace of well completions in the Eagle Ford Shale and timing of asset sales.”

— Steve Dixon, COO

Chesapeake is running 15 rigs in the Eagle Ford currently, but plans to reduce it's rig count to 10 by the end of they year. The average time from spud to spud (drilling start to drilling start) in the Eagle Ford has fallen to 16 days from 21 a year ago. After the completion of the sale of acreage to EXCO, most of Chesapeake's acreage is held by production. Now, the company will shift to more efficient pad drilling across the play.

Chesapeake & EXCO Reach Eagle Ford Deal Worth $680 Million

Chesapeake Has Drilled Almost 1,000 Wells To Date

Chesapeake has drilled 963 wells as of the end of the second quarter.

• 795 wells are producing
• 144 wells are in some stage of completion
• 24 wells are waiting for pipeline connection

The average well brought online in the second quarter produced an average of 900 boe/d.

EOG Eagle Ford Well Production Rates Soar - Will Drill More in 2013

EOG Eagle Ford Shale Acreage Map

EOG Resources announced impressive results from the first quarter. The company's Eagle Ford wells just keep getting bigger.

A total of 18 wells produced more than 2,500 b/d of oil and nine more wells produced more than 3,500 b/d of oil. That's 27 wells that came online at rates greater than 2,500 b/d!

Stellar well performance has led to an increase in planned development in 2013. EOG now plans to drill 425 net wells compared to 400 planned previously.

Results from the Eagle Ford helped fuel company-wide crude oil production growth of 33% year-over-year.

"Our first quarter results clearly demonstrate EOG's ability to consistently execute a highly efficient crude oil drilling program while simultaneously trimming costs and continually making better wells," Papa said. "To further fuel EOG's momentum, we are channeling as much capital as possible into our high rate-of-return oil plays this year."

EOG is entering what it deems a period of "manufacturing-type" development that will drive down costs, while pursuing the most effective completions. Current development is planned at 40-65 acre well spacing. The company plans to add even more wells in 2014 if oil prices hold at current levels or better.

“Based on confidence in its current asset base and multi-year inventory of drilling locations, EOG is targeting sustained peer-group leading high growth rates of crude oil production for the 2013-2017 period, provided WTI prices remain at or above the mid-$80 level.”

Notable EOG Wells In Gonzales County

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• Guadalupe Unit #01H, #02H, #03H, #04H, #09H, #10H, #11H and #12H had initial rates ranging from 2,175 to 4,490 Bopd with 265 to 630 barrels per day (Bpd) of natural gas liquids (NGLs) and 1.5 to 3.6 million cubic feet per day (MMcfd) of natural gas
• The Lepori Unit #1H, #2H and #3H, which flowed at initial production rates of 3,490, 3,900 and 3,880 Bopd with 530, 585 and 590 Bpd of NGLs and 3.0, 3.4 and 3.4 MMcfd of natural gas, respectively
• The Lefevre Unit #1H and #2H had initial crude oil production rates of 3,195 and 3,180 Bopd with 425 and 525 Bpd of NGLs and 2.4 and 3.0 MMcfd of natural gas, respectively
• The Otto Unit #4H, #5H and #6H were completed to sales at 3,915, 3,125 and 3,485 Bopd with 570, 485 and 555 Bpd of NGLs and 3.3, 2.8 and 3.2 MMcfd of natural gas, respectively.

Notable EOG Wells In Karnes County

• The Wolf Unit #1H and #2H, in which EOG has 100 percent working interest, began sales at 5,380 and 4,475 Bopd with 400 and 500 Bpd of NGLs and 2.3 and 2.9 MMcfd of natural gas, respectively
• The Lazy Oak Unit #4H and #5H went to initial production at 2,025 and 2,680 Bopd with 170 and 240 Bpd of NGLs and 1.0 and 1.4 MMcfd of natural gas, respectively
• The Korth Unit #1H and #2H, which were completed to sales in January at 3,980 and 3,580 Bopd with 415 and 450 Bpd of NGLs and 2.4 and 2.6 MMcfd of natural gas, respectively.

Chesapeake's Eagle Ford Wells Look Better and Better

Chesapeake Eagle Ford Rig Map

Chesapeake's Eagle Ford well production rates are getting better and better. The company now has hundreds of wells producing and those data points allow the company to improve its drilling and completion processes.

In the third quarter of 2012, Chesapeake brought 124 wells to production. 115 of the wells (93%) produced at peak rates of more than 500 boe/d and 43 wells (35%) produced at peak rates of more than 1,000 boe/d. That's up from 91% of wells producing 500 boe/d or better and 31% of wells producing 1,000 boe/d or better in Q2 2012 when 121 wells were completed. In the first quarter of 2012, only eight of 60 wells brought online produced more than 1,000 boe/d. I'd say that's a pretty good improvement in just six months time. CHK is now completing more than three wells a week that produce more than 1,000 boe/d.

The company highlighted the following wells in its Q3 press release:

• The Faith-Yana A Unit C1H in Dimmit County achieved a peak rate of approximately 2,175 boe per day, consisting of 1,580 bbls of oil, 295 bbls of NGLs and 1.8 mmcf of natural gas per day;
• The Gates 010-CHK-B 1286-D3H in Webb County achieved a peak rate of approximately 2,100 boe per day, consisting of 660 bbls of oil, 655 bbls of NGLs and 4.7 mmcf of natural gas per day; and
• The Shining Star Ranch B 1H in La Salle County achieved a peak rate of approximately 1,580 boe per day, consisting of 1,450 bbls of oil, 80 bbls of NGLs and 0.3 mmcf of natural gas per day.

Texon Tests Good Eagle Ford Well - McMullen County TX

Texon Petroleum released results from its latest McMullen County Eagle Ford well. The well tested at over 1,600 boepd at a pressure of more than 3,000 psi. Texon didn't disclose if that was a full 24 hr test or not. This well was completed with 17 frack stages compared to 15 in Texon's first two wells.

Texon announces that its third Eagle Ford well (Tyler Ranch EFS #2H) has tested oil and gas at the rates of 1,488 bopd and 700 mcfgpd (combined 1,605 boepd (6)) through a 16/64” choke at a flowing tubing pressure of 3,000 psi.

The well is located just to the north of the Company’s first Eagle Ford Well (Tyler Ranch EFS #1H) - please refer to the attached map. The test rate from the third well is more than the 1,200 bopd initial rate from Texon’s first EF well through the same sized choke.

The third well also has a higher flowing pressure which indicates the well may perform better than the first well.