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The Eagle Ford Completion Trends You Need to Know

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Presented by Todd Bush of Energent Group at Texas Eagle Ford Shale EXPO 2014 in Corpus Christi, Texas. A look at the top operators and wells. Who are the top operators drilling and completing? What counties are companies focusing on now? What operator’s are the most efficient? What completion designs and techniques are those companies using?

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The Eagle Ford Completion Trends You Need to Know

  1. 1. THE EAGLE FORD COMPLETION TRENDS YOU NEED TO KNOW Todd Bush todd.bush@energentgroup.com http://www.energentgroup.com @EnergentGroup
  2. 2. OBSERVATIONS • Drilling “productivity” highest in Eagle Ford • Top operators focus on field development and efficiency improvements • Choke management attention increases • Evidence of completion standard operating procedures for casing • Cost per foot in Eagle Ford 2
  3. 3. EAGLE FORD DRILLING PRODUCTIVITY 3 Source: EIA, April 2014
  4. 4. ‘UNCOMPLETED’ REDUCED BY 667 4 800 700 600 500 400 300 200 100 0 Drilling & Completion Activity for 2013 Permits Completions Rigs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA, Texas RRC, Energent Group Jan – Dec 2013
  5. 5. OBSERVATIONS • Drilling “productivity” highest in Eagle Ford • Top operators focus on field development and efficiency improvements • Choke management increases • Evidence of completion standard operating procedures for casing • Cost per foot in Eagle Ford 5
  6. 6. TOP OPERATORS BY WELL STARTS 6 Rank 1 2 3 4 5 % of Total 12.75% 9.27% 8.09% 6.62% 4.65% Count 356 259 226 185 130 Min Days 2 7 3 1 0 Max Days 115 381 121 303 124 Std. Deviation 12 56 26 48 25 Avg Days 16 38 30 67 35 Source: Texas RRC, Energent Group Jan – Dec 2013
  7. 7. EOG INVESTING HEAVILY 7 Source: Texas RRC, Energent Group Jan – Dec 2013 EOG 2014 drilling plan: 520 Net Wells 26 Rig program
  8. 8. MURPHY FOCUSING ON KEY FIELDS Murphy 2014 budget: $1.395B to Eagle Ford Piloting 20-acre spacing 8
  9. 9. TOP 5 OUTPERFORM OTHERS BY 31% 9 30 25 20 15 10 5 0 Days to Complete Timeframes for 2013 All Operators Top 5 Operators Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Texas RRC, Energent Group Jan – Dec 2013
  10. 10. OBSERVATIONS • Drilling “productivity” highest in Eagle Ford • Top operators focus on field development and efficiency improvements • Choke management attention increases • Evidence of completion standard operating procedures for casing • Cost per foot in Eagle Ford 10
  11. 11. CHOKE OPERATING PROCEDURES 11 Distribution of Choke Size 68% - Marathon, Comstock, & Chesapeake at 16/64 96% - EOG Resources at 32/64 Source: Texas RRC, Energent Group Jan – Dec 2013
  12. 12. IP TO CHOKE SIZE 12 EOG Resources Marathon Chesapeake Source: Texas RRC, Energent Group Jan – Dec 2013
  13. 13. OBSERVATIONS • Drilling “productivity” highest in Eagle Ford • More pad drilling, less emphasis on rig count • Top operators focus on field development and efficiency improvements • Choke management attention increases • Evidence of well completion standard operating procedures • Cost per foot in Eagle Ford 13
  14. 14. CONFIRMING ANECDOTAL EVIDENCE Considerations • Only 19% of wells use intermediate casing • Does 10 3/4” and 13 3/8” indicate trial well completion designs? • Is there evidence of a standard well construction in certain areas? 14 Top 10 Casing Sizes by Count Source: Texas RRC, Energent Group Jan – Dec 2013
  15. 15. PROPPANTS VARY BY PLAY • Water continues to be key issue • White sand at a premium but suppliers may lean towards resin coated sand 15 Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013
  16. 16. FRAC JOBS ACROSS EAGLE FORD 16 Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013
  17. 17. FRAC JOBS AROUND DE WITT 17 Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013
  18. 18. OBSERVATIONS • Drilling “productivity” highest in Eagle Ford • Top operators focus on field development and efficiency improvements • Choke management attention increases • Evidence of well completion standard operating procedures • Cost per foot in Eagle Ford 18
  19. 19. ESTIMATED D&C COSTS Play Lateral Length Drilling costs Cost per foot Bakken 8000 ft $8.2 - 10 mm $512 - 555 Eagle Ford 5000 ft $5.5 - 8.5 mm $458 - 556 Granite Wash 5000 ft $5.3 - 7.0 mm $331 - 378 Haynesville 5000 ft $8.0 - 11 mm $516 - 594 Permian 4000 ft $2.5 - 4.0 mm $304 - 363 Source: Shale Technology Study 2013 19
  20. 20. BREAKDOWN OF WELL COSTS 20
  21. 21. CLOSING THOUGHTS • Consider the productivity of the Eagle Ford compared to other shale plays • Identify who is pad drilling for benchmarking or sales opportunities • Understand the asset team’s standard operating procedure • Stay informed of regional news and market conditions 21

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