Chesapeake's "Propageddon" | Russell T. Rudy Energy LLC
Chesapeake Energy Corp. recently set a new record by pumping more than 25,000 tons of sand down a well in North Lousiana’s Haynesville shale, according to “World Oil”. This record volume of sand was used in a frac job on the company’s Black 2&11-15-11 1H gas well with a 9,764 foot lateral leg. Jason Pigott, VP-Operations at Chesapeake, called this super frac process “propageddon”, noting that the massive amount of sand injected increased gas production by 70% over conventional treatments. Pigott went on to say, “What we’re doing is unleashing hell on every gas molecule downhole.”
Since 2014 oil and gas operators have increased the average amount of sand used in fracking by 50%. Concurrently, the industry has Increased the length of lateral legs of horizontal wells by approximately the same amount on a percentage basis, while more and larger zones are being fracked with each treatment. More sand intensive fracks have resulted in more oil and gas produced at reduced costs. This in turn has enabled some operators to remain solvent despite the crude oil price collapse and weak gas prices.
Halliburton Co., the world’s largest fracking contractor, conducted the “propageddon” operation for Chesapeake. Halliburton thinks that while prices for oil field services remain weak, about 70% of the industry’s fracking fleet is being utilized.
James West with investment banking firm, Evercore, thinks that with contractor costs relatively low and oil and gas prices starting to recover, the trend toward more and larger completion treatments will continue. He concludes, “This Chesapeake well is further evidence that more proppant, more stages and longer laterals is the right way to go.”
To read the article in its entirety, please go to http://www.worldoil.com/news/2016/10/21/chesapeake-declares-propageddon-with-record-frac-job .
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