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Saturday, August 18, 2012

Cost of Re-Fracs as Of Summer, 2012

This came in as a comment. Again, since some folks don't read comments, I want to post this here where it is more accessible:
Re-fracs on wells usually incorporate the same stage designs as the initial frac. The DJ Basin re-fracs with guar-based gel are costing around $100,000/stage, depending on the amount of sand and gel used.

Gel is very expensive right now. I was informed that guar-based-gel is costing around $400.00/gal now as opposed to $75.00/gal a year ago. This is due to a scarity of product.

With the pumping rates being around 30 BPM to 40 BPM in the Williston Basin, gel has to be used to carry the sand into the horizontal wells. Some oil companies are using a slickwater design with the pumping rate being around 60 to 80 BPM (depending on formation). These stages are usually using a friction reducer (FR) and some secondary chemicals to carry the sand.The costs are cheaper with FR as opposed to gel, but are eaten up with the increased cost of ceramic sand.
I think it was Oasis who spoke about guar in their most recent (2Q12) earnings conference call; they mentioned they were able to obtain what they needed, but they were noticeably quiet about how much it cost.

I now have better insight/understanding regarding Slick Water. Thank you.

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