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Title: Service company alliance reduces tight sands frac costs

Abstract

Smaller, multiple-stage fracture treatments, worked out by an alliance between a producing and a service company, were a significant element in reducing costs for fracturing Carthage Cotton Valley infill wells in Panola County, Texas. Pennzoil's infill drilling program takes advantage of the Texas Railroad Commission's (RRC) ruling that allows optional 80-acre well spacing in this tight gas-sand reservoir. Pennzoil spudded 29 wells between September 1992 and December 1993 and expects to spud 20 more in 1994. The Pennzoil-Halliburton alliance began in September 1992 for the purpose of drilling and completing Cotton Valley infill wells through 1993. The two companies share the cost of new technology development, with Pennzoil providing the rig times to test Halliburton technology. To date, the alliance has experimented with an elastic strain relaxation, a six-arm extensometer, and a water-recovery surfactant. Some of the features of the alliance are: Halliburton guarantees the availability of crews and equipment to meet Pennzoil's drilling and completion schedule; Halliburton technical advisor studies existing wells to find candidates for workover or refracture; the technical advisor analyzes, plants, and evaluates the ongoing program; and the alliance is not rigidly structured, and other service companies perform part of the work. Both parties have benefitedmore » financially from the alliance and well performance has met or exceeded expectations. The alliance has enabled Pennzoil to stay on a rigid and aggressive drilling schedule and through efforts of the alliance, fracture orientation has been confirmed.« less

Authors:
 [1];  [2]
  1. (Pennzoil Exploration and Production Co., Houston, TX (United States))
  2. (Halliburton Energy Service, Houston, TX (United States))
Publication Date:
OSTI Identifier:
7198176
Resource Type:
Journal Article
Resource Relation:
Journal Name: Oil and Gas Journal; (United States); Journal Volume: 92:33
Country of Publication:
United States
Language:
English
Subject:
03 NATURAL GAS; NATURAL GAS WELLS; FRACTURING; PETROLEUM INDUSTRY; SERVICE SECTOR; TEXAS; COOPERATION; PERMEABILITY; SANDSTONES; WELL COMPLETION; WELL SPACING; WELL STIMULATION; DEVELOPED COUNTRIES; INDUSTRY; NORTH AMERICA; ROCKS; SEDIMENTARY ROCKS; STIMULATION; USA; WELLS 030300* -- Natural Gas-- Drilling, Production, & Processing

Citation Formats

Hunter, J.L., and Stuchly, S.G.. Service company alliance reduces tight sands frac costs. United States: N. p., 1994. Web.
Hunter, J.L., & Stuchly, S.G.. Service company alliance reduces tight sands frac costs. United States.
Hunter, J.L., and Stuchly, S.G.. 1994. "Service company alliance reduces tight sands frac costs". United States. doi:.
@article{osti_7198176,
title = {Service company alliance reduces tight sands frac costs},
author = {Hunter, J.L. and Stuchly, S.G.},
abstractNote = {Smaller, multiple-stage fracture treatments, worked out by an alliance between a producing and a service company, were a significant element in reducing costs for fracturing Carthage Cotton Valley infill wells in Panola County, Texas. Pennzoil's infill drilling program takes advantage of the Texas Railroad Commission's (RRC) ruling that allows optional 80-acre well spacing in this tight gas-sand reservoir. Pennzoil spudded 29 wells between September 1992 and December 1993 and expects to spud 20 more in 1994. The Pennzoil-Halliburton alliance began in September 1992 for the purpose of drilling and completing Cotton Valley infill wells through 1993. The two companies share the cost of new technology development, with Pennzoil providing the rig times to test Halliburton technology. To date, the alliance has experimented with an elastic strain relaxation, a six-arm extensometer, and a water-recovery surfactant. Some of the features of the alliance are: Halliburton guarantees the availability of crews and equipment to meet Pennzoil's drilling and completion schedule; Halliburton technical advisor studies existing wells to find candidates for workover or refracture; the technical advisor analyzes, plants, and evaluates the ongoing program; and the alliance is not rigidly structured, and other service companies perform part of the work. Both parties have benefited financially from the alliance and well performance has met or exceeded expectations. The alliance has enabled Pennzoil to stay on a rigid and aggressive drilling schedule and through efforts of the alliance, fracture orientation has been confirmed.},
doi = {},
journal = {Oil and Gas Journal; (United States)},
number = ,
volume = 92:33,
place = {United States},
year = 1994,
month = 8
}
  • Given the high cost to drill and complete tight gas sand wells, advances in drilling and completion technology that result in even modest cost savings to the producer have the potential to generate tremendous savings for the natural gas industry. The Gas Research Institute sponsored a study to evaluate drilling and completion costs in selected tight gas sands. The objective of the study was to identify major expenditures associated with tight gas sand development and determine their relative significance. A substantial sample of well cost data was collected for the study. Individual well cost data were collected from nearly 300more » wells in three major tight gas sand formations: the Cotton Valley sand in East Texas, the Frontier sand in Wyoming, and the Wilcox sand in South Texas. The data were collected and organized by cost category for each formation. After the information was input into a data base, a simple statistical analysis was performed. The statistical analysis identified data discrepancies that were then resolved, and it helped allow conclusions to be drawn regarding drilling and completion costs in these tight sand formations. Results are presented.« less
  • The first massive hydraulic fracture to be tried on a tight limestone formation in SE New Mexico has resulted in a 3-fold increase of daily production within 6 months. The fracture was performed on Yates Petroleum Corp.'s Griffin J.J. Comm in NW Eddy County on Sept. 22, 1981. Since the treatment, production has jumped from 295 mcfd with 0.81 bbl of condensate per day and almost no water in June 1981, to 872.5 mcfd with 1.5 bbl of condensate and 2 bpd of water in February 1982. The idea of using a massive hydraulic fracturing treatment on wells producing frommore » the Permo-Pennsylvanian carbonate came from watching and studying similar projects on the Cotton Valley limestone in E. Texas.« less
  • Well stimulation in the tight gas sand areas of W. Colorado and E. Utah is considered something of an emerging art form. No one claims to have designed the ultimate frac treatment for any of the tight formations in the Piceance Basin, Douglas Creek Arch or Uinta Basin, but service companies and operators continue to work toward that goal. Considerable progress has been made in the design of frac treatments, the development of new additives and in frac techniques during the past 2 or 3 yr, but a treatment that works well in one area may not accomplish comparable resultsmore » in the same formation a mile away. Service companies point out there have been important advances in the development of clay stabilizers, surfactants and other additives in the past few years. Improvement in technology and modification of equipment also provide operators with options that were not previously mechanically possible. Some general guidelines recognized by most service companies and operators are summarized.« less
  • This second part of a 2-part article deals with results of the numerical model study. For each method of stimulation, the early pressure-distribution changes were very rapid. The magnitude of these changes was a function of the surface area of the fracture or cavity that was exposed to the formation. The flow rates during this portion of the production history for each well were changing rapidly. After the formation flanking, the fracture or cavity had been depleted to essentially the well-bore pressure. The pressure distribution in the reservoir began changing much more slowly and uniformly. The flow rate monitored duringmore » this later portion of the production history for each well is referred to as stabilized flow rate. The system was not a steady state; but the flow rates, being controlled by the constant well-bore pressure and the reservoir pressure beyond the fracture or cavity, declined at rates corresponding to the reservoir-pressure decline. for the 3 reservoir situations modeled, the flow rates of the 5 stimulated wells are plotted. Tabular data show (1) comparison of average flow rate; and (2) a summary of the economics. To examine the effect of the stimulation method, the performance of each stimulated well was compared to the performance of an unstimulated well. (16 refs.)« less
  • Possible damage to induced fracture flow capacity can result from leftover polymer filter cake. Injecting less polymer into the fracture helps to limit potential flow impairment and the resulting higher post-frac conductivity means faster cleanup, higher load water recovery and increased early production. Research efforts to identify the best crosslinked polysaccharide, high-temperature fracturing gel have resulted in systematic identification and selection of optimal system components and the introduction of new systems. An anionic guar derivative crosslinked with high performance zirconium metal, delayed crosslinker was found to provide high downhole viscosity using lower quantities of polymer gelling agent. The low-residue, delayed-crosslinkmore » fracturing (LRDCF) fluid system is a carboxymethylhydroxypropyl guar (CMHPG) polymer crosslinked with zirconium (IV) crosslinker and it provides greater downhole viscosities at lower gel loading than common hydroxypropyl guar (HPG). Reduced cost is another advantage of this system. Typical Cotton Valley frac jobs using it require 20% to 30% less polymer, fewer chemicals and identical jobs can cost 8% to 12% less than comparable HPG jobs. This paper summarizes 24 jobs performed on Cotton Valley wells using thiusing this system.« less