the eagle ford completion trends you need to know

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THE E AGLE FORD COMPLETION TRENDS Y OU NEED TO KNOW Todd Bush [email protected] http://www.energentgroup.com @EnergentGroup

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THE EAGLE FORD COMPLETION TRENDS

YOU NEED TO KNOW

Todd Bush

[email protected]

http://www.energentgroup.com

@EnergentGroup

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

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EAGLE FORD DRILLING PRODUCTIVITY

3Source: EIA, April 2014

‘UNCOMPLETED’ REDUCED BY 667

4

0

100

200

300

400

500

600

700

800

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Permits

Completions

Rigs

Drilling & Completion Activity for 2013

Source: EIA, Texas RRC, Energent Group Jan – Dec 2013

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

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TOP OPERATORS BY WELL STARTS

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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

EOG INVESTING HEAVILY

7Source: Texas RRC, Energent Group Jan – Dec 2013

EOG 2014 drilling plan:520 Net Wells26 Rig program

MURPHY FOCUSING ON KEY FIELDS

8

Murphy 2014 budget:$1.395B to Eagle FordPiloting 20-acre spacing

TOP 5 OUTPERFORM OTHERS BY 31%

9

0

5

10

15

20

25

30

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Days to Complete Timeframes for 2013

All Operators

Top 5 Operators

Source: Texas RRC, Energent Group Jan – Dec 2013

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

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CHOKE OPERATING PROCEDURES

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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

IP TO CHOKE SIZE

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EOG Resources

Marathon

Chesapeake

Source: Texas RRC, Energent Group Jan – Dec 2013

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

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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?

14Source: Texas RRC, Energent Group Jan – Dec 2013

Top 10 Casing Sizes by Count

PROPPANTS VARY BY PLAY

• Water continues to be key issue

• White sand at a premium but suppliers may

lean towards resin coated sand

15Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013

FRAC JOBS ACROSS EAGLE FORD

16Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013

FRAC JOBS AROUND DE WITT

17Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013

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

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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

19Source: Shale Technology Study 2013

BREAKDOWN OF WELL COSTS

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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

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