Mike Filloon On QEP Wells In The Bakken -- June 11, 2015

This is another cool story. Regular readers have already noticed the incredible wells that QEP has been reporting. One can find examples like these over on the "High IP" page:

• 28019, 2,509, QEP, Moberg 4-20-21BH, Grail, t11/14; cum 133K 4/15; being choked back
• 28020, 2,325, QEP, Moberg 3-20-21TH, Grail, t11/14; cum 135K 4/15; being choked back
• 28021, 2,529, QEP, Moberg 3-20-21BH, Grail, t11/14; cum 134K 4/15; being choked back
• 28022, 2,566, QEP, Moberg 2-20-21TH, Grail, t11/14; cum 134K 4/15; being choked back

Today, we have Mike Filloon's take on these wells, and it's quite incredible. His article will be archived.

Summary

• Many operators like QEP are converting to sand-heavy 50-plus stage fracs.
• We are just beginning to realize the production uplift from better well designs, which are part of the reason why U.S. production remains high on fewer completions.
• QEP EURs in Grail Field are already above 1000 MBoe, and we expect an additional uplift of 25% as it converts to 50-plus stage wells.
• High grading and better well designs flatten out the depletion curve and should be considered when monitoring U.S. production going forward.
• Well costs continue to head lower, aiding in decreasing payback times for producers.

We continue to see well design create significant production improvements. These improvements should increase costs, but this isn't being realized. Well service costs are heading lower, plus drilling and completions work is being done in a shorter period of time. Longer laterals, an increased number of stages, increased proppant and larger volumes of water are still translating to lower costs.

EOG Resources  can be thanked for the push in better well design. It is the best unconventional operator in the world, and owns a large number of the best-producing wells in the United States. Its secret is source rock stimulation. EOG focuses on breaking up rock. By creating more fractures, it releases the most resource.

While most operators like Continental, Whiting, and Exxon, were still using sliding sleeves and ceramic proppant, EOG was doing something different. It was using plug and perf with very large amounts of sand. The company focused on fracking around the well bore. This produced a large number of wide, short fractures. This void needs large amounts of sand to keep the fracs open. It has produced monster results, and most operators are now trying to duplicate this design.

So much more at the link. 

On a side note, to pat myself on the back, it's interesting to see Filloon incorporating screen shots of google earth maps which this blog has been doing "forever," just as I often use music videos to complement a post, which RBN Energy also does. I believe the milliondollarway pre-dates both Filloon's contributions at Seeking Energy and I know for sure that the blog pre-dates RBN Energy.

Having said that, no one beats Filloon at what he does; Z-Man comes close. I pale in comparison, can't touch either of them, but folks interested in the Bakken can learn a lot from all these sites. RBN Energy, of course, is probably the best "general energy" site for the kind of stuff I like to cover.