Economic and Operational Analysis of Systematically Deploying New Technologies in Two US Unconventional Plays

Abstract

An operator working in the STACK and Mississippi Lime plays of the Mid-Continent region in the United States is developing its acreage with the use of open hole multistage (OHMS) completion systems. This paper will detail new technologies and advancements that are providing enhanced economic benefits and enabling the operator to unlock the full potential of the targeted formations. The operator holds one of the largest acreage positions in the Mid-Continent region and in 2014 had operated or participated in approximately 170 horizontal wells. This operator approached its development with the goal of reducing completion costs; bringing completion costs in line with estimated completion costs; reducing health, safety and environment (HSE) exposure, while reducing cycle time; and preserving estimated ultimate recovery (EUR) of its assets. Some of the new technologies and advancements to achieve these goals include: changing core completion methods, radioactive tracers, dissolvable balls, high-rate water stimulation, extended reach laterals, microseismic analysis, water-soluble tracers, oil-soluble tracers, stage spacing and statistical analyses. These new technologies and advancements adopted by implementing OHMS completion systems provided the operator with significant cost savings when compared to previous wells completed in the region using cemented liner plug-and-perf techniques. Lessons learned from each well were applied to future wells and the operator realized further cost savings as it continued development of the region using OHMS completion systems. These cost reductions were achieved while preserving the EUR of the assets, increasing the economic viability of the operations. The technologies, methods and procedures will be presented in this paper to help paint a picture of how this particular operator is leading the way in reducing completion costs and increasing reserves. The details provided will show how OHMS technology is a cost-effective option for operators drilling and completing horizontal wells in the Mid-Continent region of the United States and provide strategies that can be applied in other formations around the world.