STAGES Update: 6/4/2021
Here is the update for the first week in June.
STAGES Pumped
The frac crew count dropped 2 last week.
STAGES Created
The horizontal rig count remained steady for the week. The stages per well have started to trend upward so even with a steady rig count the STAGES count has increased. Two rigs in Oklahoma shifted from the Granite Wash to other parts of the state.
STAGES Ratio
My analysis last week ad the STAGES Ratio dipping by 1% however, this was a calculation error and it had remained at 54%, which is the case this week. The 6-month moving average has not ticked up to 49%, slightly closing the gap with the STAGES Ratio.
STAGES News
In my EOG analysis, I mention their use of what they called a “Super Zipper”. This is a practice where 1.X frac crews and two wireline crews are used to frac two wells at once. According to their practice, it is best done on pads with 4 wells. They discussed how this allowed them to increase efficiencies of their operation and reduce costs. In a Feb 8th Article posted on jpt.spe.com Tran Jacob discusses this trend and a recent report from Rystad calling it Simul-Frac. In a traditional Zipper Frac one well is frac’d while another one is setting a plug and perforating.
When the frac on the first well is completed the operations switch wells. In a Simul-Frac (aka Super Zipper), two wells are frac’d while the other two are setting plugs and perforating. Since there isn’t a 2x increase in the number or pump trucks the rates pumped into each well is reduced. The article suggests a drop from 100 bbl/min/well to 80 bbl/min/well.
According to the Rystad report 46% of wells frac’d are located on 4 well pads. The majority of these are in the Permian. In 2020 they report there were ~250 wells frac’d using the Simul-Frac operation, with 157 of these in the Permian. The wells Simul-frac’d last year only represent 10% of the total available market to the operation. With companies like Ovintiv reporting a $400,000 savings per well, I’d assume others would be looking to follow suit.