Permian Basin Watch: Acreage quality appears to matter more than proppant load

Here is interesting analysis of 65 wells mostly in Reagan County in the Permian Basin for AEP Permian put on line during Nov 2013 through early Sep 2015.

Overall, we see improving results as shown in Figures 1 and 2. We also note that brute force - i.e., more proppant and longer laterals - is not necessarily driving the better results (Figures 3 and 4). Rather, better results appear to be coming from other factors such as high grading acreage, improved landing of the lateral, and placement of proppant within the formation (see the attached charts). Only after those factors are optimized does increased proppant load seem to drive improved results.

Source: TX RRC, DISCERN Figure 1 - Initial rates have risen.

Source: TX RRC, DISCERN

Figure 1 - Initial rates have risen.

Source: TX RRC, DISCERN Figure 2: Better rates per 1000 feet of lateral is the big driver.

Source: TX RRC, DISCERN

Figure 2: Better rates per 1000 feet of lateral is the big driver.

Source: TX RRC, DISCERN Figure 3: Lateral length has not changed much overall.

Source: TX RRC, DISCERN

Figure 3: Lateral length has not changed much overall.

Source: TX RRC, DISCERN Figure 4: Proppant load has not changed in a notable fashion.

Source: TX RRC, DISCERN

Figure 4: Proppant load has not changed in a notable fashion.

Source: TX RRC, DISCERN Figure 5: However, higher proppant loads per foot drive better results on more recent wells. (Larger spots represent more recent wells.) 

Source: TX RRC, DISCERN

Figure 5: However, higher proppant loads per foot drive better results on more recent wells. (Larger spots represent more recent wells.) 

Source: TX RRC, DISCERN  Figure 6: Early wells with high total proppant load underperformed.

Source: TX RRC, DISCERN

 Figure 6: Early wells with high total proppant load underperformed.

Source: TX RRC, DISCERN Figure 7: But that Boe/lb is better for newer wells and to the north. (Blue = 2013, Orange = 2014, Green = 2015)

Source: TX RRC, DISCERN

Figure 7: But that Boe/lb is better for newer wells and to the north.

(Blue = 2013, Orange = 2014, Green = 2015)

 

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