Energent Group: Frac Sand Trends

  • Published on
    14-Jun-2015

  • View
    296

  • Download
    3

DESCRIPTION

Texas proppant and frac sand trends. Does more sand really equal better wells? Energent Group takes a look at the frac sand data in Permian, Eagle Ford, and Granite Wash to identify key operators and trends.

Transcript

  • 1. TEXAS PROPPANT TRENDS:MORE SAND = BETTER WELLS?Frac Sand Supply & Logistics ConferenceAugust 21, 2014Todd Bushtodd.bush@energentgroup.comhttp://www.energentgroup.com@EnergentGroup

2. ABOUT ENERGENT GROUPEnergent Group is a boutique market research firm focused solelyon our clients needs for oil & gas data and research products. Wehelp our clients identify top operators and peers in a play, discoversales opportunities, evaluate business line and market expansion,2and detect trends in the completion & frac supply chain. 3. OBSERVATIONS Drilling productivity highest in Bakkenwith Eagle Ford following Top operators focus on field developmentand efficiency improvements Vertical and horizontal well strategies in thePermian Basin Horizontal well focus in the Eagle Ford Contrasting two key counties3 4. 30% OF RIGS IN PERMIAN BASIN455819919479 77 69 62 45 44 34 25Industry continues shift (+205) to Horizontal 5. BAKKEN PER RIG PRODUCTIONSource: EIA Drilling Productivity Report 509001009501000105050011006001150200300400Jan-12Feb-12Mar-12Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14Jul-14Aug-14Sep-14Permian EFS Bakken Niabrara Rigs 6. OBSERVATIONS Drilling productivity highest in Bakkenwith Eagle Ford following Top operators focus on field developmentand efficiency improvements Vertical and horizontal well strategies in thePermian Basin Horizontal well focus in the Eagle Ford Contrasting two key counties6 7. TOP 5 OPERATORS ACROSS TEXAS7 8. EOG LEADING LOWER 488Source: EOG Investor presentationsEOG Activity YTDEOG averages 10 million pounds of fracsand per well in Eagle Ford 9. PIONEERS PERMIAN FOCUS Increasing horizontal rigs(5 to 16) while reducingvertical rigs (11 to 9) Optimizing completions Increasing clusters per stage Increasing proppant per foot Reducing fluid volume 29% horizontal wellcompletions this year9Pioneer Activity YTD 10. ATHLON SCALING UP IN PERMIAN Scaling up oilmanufacturing with7,308 drilling locations Vertical & horizontalstrategy in Permian 2% horizontal 134,000 net acres Active in WolfberryAthlon Permian Activity YTD10 11. EP ENERGYS SUCCESS DRIVERS Refining lateralplacement & improvingstimulation design Utilizing resin-coatedand white sand Cycle time reduction 100% horizontal inPermian and Eagle Ford11EP Energy Activity YTDSource: EP Energys investor presentations 12. OBSERVATIONS Drilling productivity highest in Bakkenwith Eagle Ford following Top operators focus on field developmentand efficiency improvements Vertical and horizontal well strategies in thePermian Basin Horizontal well focus in the Eagle Ford Contrasting two key counties12 13. PERMIAN BASIN TOP OPERATORS Average oil IPs arefairly consistentacross operators Sandridge andChevron have 100%vertical activity COG and Energenare outliers for gasIPs131821491149481 77 7560 59 5720018016014012010080604020-800700600500400300200100-Avg IP Gas (MCF) Avg IP Oil (BBL) 14. PERMIAN BASIN SAND USAGEMidland BasinCentral BasinDelaware Basin14 15. OBSERVATIONS Drilling productivity highest in Bakkenwith Eagle Ford following Top operators focus on field developmentand efficiency improvements Vertical and horizontal well strategies in thePermian Basin Horizontal well focus in the Eagle Ford Contrasting two key counties15 16. EAGLE FORD BASIN TOP OPERATORS 99.6% horizontalcompletions Rosetta having successwith new gas wells Carrizo using 8-15million pounds of sandper well1626317411776 7260 58 5644 3630025020015010050-3,5003,0002,5002,0001,5001,000500-Avg IP Gas (MCF) Avg IP Oil (BBL) 17. EAGLE FORD SAND USAGE17Oil WindowGas Window 18. OBSERVATIONS Drilling productivity highest in Bakkenwith Eagle Ford following Top operators focus on field developmentand efficiency improvements Vertical and horizontal well strategies in thePermian Basin Horizontal well focus in the Eagle Ford Contrasting two key counties18 19. TOP COUNTIES TELL THE STORY19Andrews La SalleWell Completions 366 261Oil IP24 Average (bbl) 86.8 905.3Gas IP24 Average (mcf) 62.6 766.4Water IP24 Average (bbl) 360.8 1129.6Frac Sand Average (lbs) 277,685 9,255,944Sand Volume (MM lbs) 69 1,073Horizontal (%) 7% 99%Oil (%) 100% 95% 20. OBSERVATIONS Drilling productivity highest in Bakkenwith Eagle Ford following Top operators focus on field developmentand efficiency improvements Vertical and horizontal well strategies in thePermian Basin Horizontal well focus in the Eagle Ford Contrasting two key counties20 21. CLOSING THOUGHTS Identify who is issuing horizontal permits inareas near or adjacent to successful operatorsor wells Determine operators taking manufacturingapproach using pad drilling to quantify salesopportunities Assess well and frac sand locations for strategicplanning efforts Monitor upcoming re-frac market asopportunity to win business Expect down-spacing and field development tocontinue at this pace through Q4 201421 22. 22