Encana’s cube development approach, combined with advanced completion practices, has significantly enhanced its Permian well performance and led to a 20% increase in the company’s Permian type curves and 700 new premium return locations, according to the operator.
The 700 new premium return locations is five times the quantity the company will drill this year and brings total premium return locations in the play to 3,450. Encana expects it will develop less than 30% of its Permian premium inventory through 2021.
“Through our focus on operational excellence, innovation and quality corporate returns, we continue to make Encana more valuable and resilient,” Doug Suttles, Encana President and CEO, said. “The company’s world-class Permian asset comprises thousands of feet of stacked resource. Our cube development is delivering leading well performance and efficiencies. We believe this approach will become the industry standard for stacked pay development.”
Encana’s fast-paced and structured innovation is changing the way stacked plays are developed. Its cube development approach targets multiple stacked pay zones from a single location to deliver significant value above ground, as well as below ground in the reservoir.
Above ground, the cube development drives significant capital and operational efficiencies, which are delivering drilling and completions savings of approximately $1.2 million per well compared with traditional single-well development.
Encana expects to hold its 2017 Permian well costs flat compared with 2016 on a like-for-like basis.
In the reservoir, cube development maximizes production and resource recovery and minimizes or eliminates risk of value erosion connected with infill drilling and offset hydraulic fracturing interference.
The combination of tighter well density, precision targeting, advanced completion practices and longer laterals are delivering strong results and improved type curves in addition to enabling Encana to increase its Permian premium return inventory by 25%.
Trendsetter Engineering has completed live well operations with its new 15,000-psi subsea hydraulic intervention system, STIM. The system, which had previously been utilized for subsea hydrate remediation work, has completed seven subsea projects in the Gulf of Mexico since November 2016, in water depths ranging from 2,500 ft to 7,200 ft.
The recent live well operation campaign, which was conducted from February through March of this year, consisted of acid stimulation on three wells in water depths as deep as 7,200 ft and with pressures up to 12,500 psi and sustained pump rates of 10 bbl/min. The campaign was the first to be conducted with a hydraulic well intervention system certified by a BSEE-approved independent third party as fully compliant with new well control regulations, according to Trendsetter.
“The deployment of our STIM system is another major step for Trendsetter as we continue our evolution from a subsea hardware provider to a comprehensive offshore oil and gas services company,” Mike Cargol, Vice President of Rentals & Services for Trendsetter Engineering, said. “The successful operations of our 15,000-psi hydraulic intervention system on a live well signals the official entry of Trendsetter into the subsea well servicing market.”
Devon Energy has brought online a record-setting Meramec well and commenced production on several high-rate wells in the core of the overpressured oil window of the STACK play during Q2 2017.
The Privott 17-H well was brought online in southwest Kingfisher County and achieved a facility-constrained peak 24-hr rate of 6,000 oil-equivalent bbl per day (BOED). Compared with publicly available data in the STACK, the well achieved the highest initial production rate of any well and is expected to recover in excess of 2 million BOE over the life of the well.
The well was drilled with a 10,000-ft lateral and landed in the upper Meramec interval near the company’s Showboat development, which will spud in Q3. A key contributor to this well result was an improvement in stimulated rock volume around the wellbore through a proprietary completion design.
Devon also brought online four high-rate Meramec wells in the core of the overpressured oil window during Q2 that benefitted from the enhanced completion design. These four wells attained an average 30-day initial production rate of 2,000 BOED. On a per-lateral-foot basis, average well productivity was greater than 300 BOED per 1,000 ft of gross perforated interval.