American Oil and Gas Reporter - August 2015 - 105

SpecialReport: Rockies Activity Profile

With approximately 96,000 net acres held by production, PDC Energy Inc. was the Wattenberg Field's third-largest producer in the first quarter of 2015, with an output of
29,200 barrels of oil equivalent a day. The company indicates that about 40 percent of
its 2015 drilling projects feature laterals that range from 6,500 to 7,000 feet.

leading, aggressive production growth
in this basin," he describes.
With an improved cost structure and
drilling efficiency gains, the company at
mid-July employed five flex rigs, and expected to spud 119 gross operated wells
this year, 47 of them with extended reach
laterals, Brookman says. He goes on to say
that about 40 percent of the company's
2015 drilling projects incorporate longer
laterals, which range from 6,500 to 7,000
feet, compared with standard lengths of
4,200-4,500 feet.
Although managed initial production
rates are similar, he says, the company anticipates extended reach wells will have
flatter decline profiles and enhanced reserves, with EURs averaging about
600,000 boe in the middle portion of
PDC's core acreage, compared with
440,000 boe for a standard reach lateral.
He goes on to report that PDC continues to pursue optimum downspacing in
wells targeting the Niobrara A, B and C,
and Codell plays, and averages about 20
equivalent wells a section. However, on
its half-section Becker Ranch project in the
southeast corner of its core holdings, the
company will test the equivalent of 22
wells a section, eight of which tap into the
Niobrara and three that produce from the
Codell, Brookman reveals. On its half-section Rieder acreage on the western edge,
where success has been stellar, he says, the
company is drilling the equivalent of 10

Niobrara wells and three Codell wells a
section.
"Downspacing is a critical part of
driving improvement in our reserve report
and improvements in our inventory, long
term, for the company," he observes.
Although sliding sleeve has been the
predominant method of isolating completion stages throughout the field, Brookman
reports, PDC continues to try new completion techniques, including more plugand-perf with shorter frac stages. Early
production for some wells testing plugand-perf is 25-35 percent better than projections, with only a projected 6 percent
cost increase, he says.
The company also is experimenting
with cemented liners to improve frac

placement and a variety of designs for
proppant sands, and is deploying Halliburton's BioVert® chemical diverter to help
create more complex fracture networks
with the same completion volumes, Brookman details.
In April, the company upgraded its type
curves for the field's outer, middle and inner core areas, with enhanced completion
technology being the primary driver, including shortening stage lengths to about
200 feet compared with a previous average of 250 feet, he reports.
All in all, the improvements translate
to a break-even price-which incorporates a 10 percent return-of about $35 a
barrel for the company's middle core
projects, he says. At its current drilling
pace, PDC has 15-20 years of drilling inventory, Brookman says.
Progress With Proppants

Houston-based Oasis Petroleum Inc.
continues to recognize robust production and reserve gains during its ongoing
transition to high intensity fracs in its core
Williston Basin acreage, indicates Richard
Robuck, treasurer and vice president of finance.
The core acreage includes the highest
EURs and best infrastructure access, with
the Bakken and Three Forks 1 sites comprising more than eight years of remaining inventory, he says. Oasis has 825 undrilled locations in the core alone, Robuck
adds.
The shift to high-intensity fracs began
in 2013, when such completions account-

Oasis Petroleum Inc. reports it has improved its early production 20-45 percent and
boosted its wells' estimated ultimate recoveries 10-30 percent since March 2007. With
506,000 net Williston Basin acres, Oasis said in midsummer it was running four rigs in
its core holdings.

AUGUST 2015 105

American Oil and Gas Reporter - August 2015

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