Liberty Resources: fracking expertise
I post a lot of stories every day, and don't always get a chance to read everything I link. I finally got back to this story. If you have time to read only one story today, this is the story (at the link below) that I would read. My notes are from the first part of the linked article; much more at the link.
I'll know you've read the linked article if you can tell me what the breakeven price for a Bakken well is ($/bbl). I think newbies will be surprised.
The "nut" of the problem/solution:
While we have great confidence in our ability to design fracture treatments for the Bakken, execution represents a potential problem. The rapid growth in demand for hydraulic fracturing services has led to three things: 1) constricted availability of supply to get wells fractured; 2) high prices for fracturing services; and 3) relatively low service quality. Based on our background in oilfield service and supply, we decided to form a company that could supply these services in a timely fashion with high quality and reliability. In March of this year, we formed Liberty Oilfield Services, which recently began fracturing operations in Williston. Liberty Oilfield Services will be the fracturing entity for the majority of our development. We have had great early success in building the team for this company, starting with hiring two individuals we knew well as our service leadership: our business manager for Liberty Oilfield Services has a PhD in hydraulic fracturing, and our operations manager has a distinguished career in operational excellence.Link to article.
I blogged about this the other day. I said I would get back to the article if I had time. Here are some data points from the first part of the article. Go to the link for a whole more.
- Chris Wright wanted to start a new company: felt he could assemble a team with expertise in fracking
- CEO feels that fracking will be the discriminator in the Bakken (cost and effectiveness)
- Mark Pearson: former president and CEO of CARBO Ceramics, the world's largest manufacturer of proppants
- Paul Vitek: was CFO for CARBO Ceramics for more than 20 years
- Liberty Resources is a portfolio company of Riverstone Holdings: had the resources necessary for the Bakken -- moving too rapidly to rely only on funding from individual investors
- first land acquisitions with Zavanna, LLC
- improved Zavanna's well performance by a factor of 2 or 3 times
- Liberty Resources now has nearly 44,000 net acres in the central basin of the Bakken -- all of this since founding the company in September, 2011
- who is the operator of these wells? 2 Liberty Resources wells; 2 Zavanna wells; controls drilling and fracturing of all four wells; 20% of our development is non-operated
Liberty fracking, 2-3 times higher performance, impressive. I just drove by 3 of their well sites north of Williston.
ReplyDeleteAll 3 sites have 2 wells drilled from one pad.
The wells on sec. 21 156N-100W have 18 oil storage tanks and the wells are pumping and flaring. The wells on sec 18-156N-100W have 20 oil storage tanks and are flaring. The wells on sec 15-156N-101W have 20 storage tanks and are being prepped for fracking.
When I first saw one of Liberty's 20 tank pads near the 13 mile corner, I thought this was a site where multiple wells would be tied into. After reading your post and checking out other Liberty sites I am beginning to think they need that many tanks.
The local scuddle butt around here is that after fracking the 2 wells drilled from sec 21 156N 101W were free flowing over 3000 bpd each. I think I would like to buy stock in Liberty. Have you heard if they are going public?The fracking technology keeps getting better.
Thank you for the update regarding these wells.
DeleteI only know what I post. I have not heard anything about this company going public, but it would not surprise me.
Liberty is the US business side of Tri-Can Engery Services out of Canada. Might be something to look into.
DeleteAre we talking about two different companies, Liberty Resources, and Liberty Pressure Pumping, LLC? The latter is a Texas company acquired by Trican Well Service in 2007.
Deletehttp://wimgo.com/denton-tx/liberty-pressure-pumping-llp/business/140697367
Meanwhile:
"Trican [Well Service LTD] is currently the largest pressure pumping service provider in Canada and the largest fracturing company in Russia, with growing operations the United States, Kazakhstan and Algeria. Trican’s expertise and experience in pressure pumping is one of the most extensive in the industry, with an annual average of more than 6,000 frac jobs performed worldwide in the past three years. Trican has also performed an annual average of more than 9,200 cementing jobs, 3,200 nitrogen jobs and close to 2,700 deep coiled tubing jobs over the past three years, among many other services around the world."
http://www.trican.ca/About/Default.aspx