Friday, June 21, 2013

EOG Drills Well In Western North Dakota With Payback In Six Months -- Mike Filloon

Reported at SeekingAlpha.

This is an incredible story. I reported the phenomenon at least two years ago.

Back in November of last year, I began covering a change EOG Resources had made with respect to its completion work. I originally noticed this in the Eagle Ford, as it had the best results of any unconventional horizontal wells on land in the United States. Originally it was believed the Eagle Ford was that much better with respect to geology, but other operators in the area such as Magnum Hunter  and Penn Virginia  under performed in Gonzales County. The differences were quite large, as EOG wells had 90-day IP rates triple that of Magnum and Penn. When the data is compared on a production/foot basis, EOG's wells improve further.

What separates EOG from other operators is how it looks at source rock stimulation. Operators have historically thought the deeper fractures would produce the most resource as it intermingled with the existing fractures. EOG is focusing on creating fractures close to the horizontal leg. Not only would the pressure create more and better fractures, it could possibly increase the number of locations per square mile. This would reduce the chances of communication between wells. With fractures closer to the well bore, it is easier to get the water and proppant pushed deeper into the source rock. In essence, we will see more pressure from the pump trucks exerted over a shorter distance. This would increase the fractures per square foot. In response, more proppant and water would be needed per foot. Tighter stages would be beneficial as this would produce additional fracturing.

No comments:

Post a Comment