Encana‘s cube development approach, combined with advanced completion practices, have 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. 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 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, 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. Below ground 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%.
Encana is focused on creating additional value and upside in its stacked pay Permian assets through the combination of its advanced completions design and targeting new benches. The company began applying its advanced completion designs in the Permian during the second quarter. Advanced completion designs have delivered up to a 60% well performance improvement in the Eagle Ford and the Montney.