Re-Posting: Innovations In The Oil Patch -- Why Tier 2 Locations Can Evolve Into Tier 1 Locations -- May 11, 2021

See this post.

Re-posting this portion of that post:

Updates

Later, 6:29 p.m. CT: and there's more -- 

If you Google 'nano proppants shale',  you may see several articles describing this topic ... just one more of countless innovations that continue to emerge in the upstream segment of this industry.

It was just a few years ago that 'micro proppants' were introduced ... 200 to 400 mesh, ultra tiny particles that entered and scoured fissures and allowed the larger 100 mesh to enter and prop the newly-formed pathways. 

Now, nano particles, described as 1,000 mesh ( which are actually too tiny to be described in 'mesh'  terms ), are being employed. 

Some of this material is - literally - dust from crushed granite.

The discovery/improvement/refinement of so SO many aspects of this industry is nothing short of astonishing.

Later, 2:57 p.m. CT: more on Monobore drilling from the reader who sent the notes below --

In the Bakken (at least up to a few years ago), and many other shale basins,  a large 13-inch steel casing would be emplaced/cemented down to 300 feet or so ... beyond the water table.

Then, smaller 9-inch casing would be emplaced/cemented down to about 1,900 feet depth. 

From there, still smaller (7 inch/5 inch) casing would be installed/cemented down to the final vertical depth (10,000 feet) or out to the end of the lateral (20,000 total feet).

The biggest reason for this telescoping configuration is to effectively control the bottom pressures (3,500 psi up to 10,000 psi) throughout  an unbroken metal 'straw' right up to the surface.

Monobore drilling can be utilized when the recognized formation's bottom hole pressure is low enough so that these expensive casings/cementing are not needed.

The Niobrara (Colorado) is somewhat  shallow (~7,500 feet) with relatively low pressure. (This is one reason why Niobrara wells produce comparatively small amounts of oil per well). 

If state regulators allow, and operators believe casing is not needed, a drill rig will go from spud to TD in a single run which can be both faster and cheaper than standard drilling. [Comment: it's interesting - operators can drill the vertical in one day, the curve in twelve hours, and the lateral in three days -- I think that's the gold standard -- doesn't always happen, obviously, but I've reported several such wells.]

Some operators in shallow Permian formations have also  done this, but the entire approach gets very little publicity.

Later, 1:08 p.m. CT: a reader noted the information about how quickly the lateral was drilled. The writer added this: 

Expanding upon the ~3,000 foot per day lateral drilling situation ... To acknowledge how this impacts the economic viability of 'shale' wells throughout the country would be to state the obvious. Amongst other effects, this continues to expand the productive footprint of all the basins across the country. (This, in direct contrast to the OMG, running out of sweet spots concept). -- Comment: yes, I've also suggested this helps move "Tier 2" sites into "Tier 1" sites.

Antero just drilled 12,118 lateral feet in 24 hours, a record. 

While their average is now over 7,500 lateral feet per day, several other operators routinely  claim three-to- four-thousand lateral feet per day as their norm.

Again, an astounding accomplishment.

As per Schlumberger's press announcement a few weeks back (4/23/2021), they worked with a Niobrara operator who drilled a  >21,000' MD well on one run, using the so called Monobore approach which greatly reduces time and cost while  enabling expanded Artificial Lift options. -- Comment: I had not heard of the Monobore technology but a quick google search suggests this technology was developed for off-shore drilling and then found utility in very, very deep onshore drilling. I could be wrong but that was the impression I had.

The unceasing march of innovation continues unabated.

Comment: this was clearly a two-edged sword for oil service companies like Schlumberger. Their technological improvements kept them competitive but their margins may have decreased due to less "time on site." 

Original Post

The Hess EN-Anderson wells are tracked here. 

The well:

• 36603, 3,416, Hess, EN-Anderson-LE-156-94-1820H-11, 33-061-04514, Manitou, t11/20; cum 126K 3/21;  227,901 bbls water; 32 stages; 11.932 million lbs proppant; from the file report:
  

• spud date: June 19, 2020
• cease drilling: June 26, 2020 (let that sink in)
• target: middle Bakken
• 2560-acre spacing
• logging services began: 9:20 a.m., June 20, 2020
• KOP reached: 5:35 a.m. June 21, 2020
• building of the curve began at 6:45 a.m. June 22, 2020
• middle Bakken encountered at 10,153' TVD, one foot low to the prognosis;
• curve TD: 10,502' MD at 3:49 a.m., June 22, 2020 (obviously a typographic error)
• either 3:49 p.m. June 22 or 3:49 a.m. June 23
• lateral began at 11:17 a.m. June 23, 2020
• TD: 8:50 a.m. June 26, 2020 (three days to drill the lateral)
• wellbore tracked throughout the middle Bakken for 100% of the lateral;