More On Re-Fracks -- July 27, 2015

More on re-fracks from that article over at Platts:

Many industry watchers were skeptical that refracturing technology was developed enough for wide-scale application on horizontal wells, which have gained momentum in the shale revolution since the early 2000s. But new technologies that can better pinpoint the areas of left-behind oil and gas from the original fracturing are being rapidly developed and oil service companies are betting big money on it.

For example, in recent weeks, Halliburton released a new reservoir evaluation tool, while Baker Hughes, the third-largest oil services company soon to merge with Halliburton, has debuted a well integrity evaluation tool.

For example, microseismic analysis and state-of-the-art tracers to monitor where proppants are directed can be applied to refracs. Rock quality varies between basins and requires different approaches. Proppants are typically sand or ceramic to hold fracs open and allow greater hydrocarbon flows.

Since often 10% or less of a well’s hydrocarbons are captured the first time around, many in industry look to refracs as a relatively inexpensive way to hike output — particularly at a time of lower oil prices, since refracs typically run around 25-30% of the original well’s $6-$8 million price tag.

In the last 10 days, the two largest oilfield service providers indicated they were preparing for a wave of refracs.

Wow, look at all those data points:

• first, though, I doubt the HAL-BHI merger will be approved
• North Dakota Bakken, I believe, has the world's largest micro-seismic array
• as much as 10% of the OOIP recovered first time around. Really? We were told early on that the Bakken operators were getting only 1 - 3% first time around but I suggested early on it was much more than that; subsequently, some drillers suggest as much as 8% first time around, and maybe even that is too low with new completion techniques
• in the last 10 days, the two largest oilfield providers indicated they were preparing for a wave of refracs

This comes on top of the 925 wells that need to be fracked for the first time in the Bakken.

This is going to be incredibly interesting to see play out.

By the way, did you all see the recent quote that the breakeven point for Bakken oil in the Watford City area is $28/bbl?