Reason #1 Why I Love To Blog -- A Reader Explains MRO's Lower Number Of Stages -- April 4, 2019

Earlier today I asked if anyone was paying attention? I was unable to explain why MRO is consistently fracking with fewer stages (and therefore [?] less sand).

A reader who has provided many insightful and helpful comments over the years sends this explanation.

Regarding MRO's lower stage count ... the March issue from American Oil and Gas Reporter (aogr.com) contains an outstanding piece targeting Oasis' Elkhorn Field in the Bakken for a look into cutting edge fracturing/completion practices. The full link: https://www.aogr.com/magazine/editors-choice/engineered-completions-key-to-economic-development-of-elkhorn-field.

I have read the uber wonky piece twice and will need further reading in attempting to 'get' what is occurring, but - essentially - operators are maintaining 1,500/2,000 psi pressure between the wellbore's 'edge' (entry point into the formation) and the ever-expanding fracture tip. 

This is accomplished by the precise placement and number of entry points (clusters) and employing diverters (temporary plugs) in order to contain the frac (vertically and horizontally) while maintaining a very high pressure.

The effective accomplishment produces a VERY rubbilized (sic) formation within a tightly constrained area.  This essentially is what Mark Papa has always sought.

Liberty Resources is a leading innovator in this regard and has some papers online discussing this approach.

Incredibly the full article is accessible without hitting a paywall. To be safe, I've archived it.

The buzz-phrase in the last six months has been the "problem" with "parent-child" interference. This article also addresses that issue.

This is an incredibly important article for those trying to better understand the Bakken.

A huge "thank you" to the reader for sending this. It truly made my day. Best article all day. All week? Maybe.

I believe Mark Papa (former CEO of EOG) is now CEO of Centennial Resource Development:

Centennial Resource Development, Inc., an independent oil and natural gas company, focuses on the development of unconventional oil and associated liquids-rich natural gas reserves in the United States.

The company’s assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks primarily in Reeves County in West Texas and Lea County in New Mexico. As of December 31, 2018, it leased or acquired approximately 80,223 net acres; and owned 1,597 net mineral acres in the Delaware Basin. The company was formerly known as Silver Run Acquisition Corporation and changed its name to Centennial Resource Development, Inc. in October 2016.

From Bloomberg:

Mr. Mark G. Papa has been the Chief Executive Officer at Centennial Resource Development, Inc., (Formerly, Silver Run Acquisition Corporation) since November 2015 and has been its Chairman since October 12, 2016.