American Oil and Gas Reporter - April 2016 - 72

SpecialReport: Drilling Technology
and cost containment."
Keen says he tries to keep pace with
the latest developments regarding completion technology and seismic innovations, but the market leaves a small margin
for long-term investments. "As the price
of oil has dictated retrenchment, we have
curtailed most exploratory and development expenditures," he laments.

Even so, he says, Keen Oil remains
focused on sustainability in a market in
which many companies have experienced
severe viability issues. And although oil
prices appear to have bottomed in the
current cycle, he acknowledges that there
are many indications that point to an extended price slump from the highs of
mid-2014.

"We are in survival mode," Keen acknowledges. "This is the fourth one of
these industry recessions I have been
through personally. This downdraft has
been more difficult because the industry's
fixed and variable cost structures are
much higher today than during the previous, more severe price correction in the
late 1990s."
❒

Variety Of Applications Keep CT Units Busy
By Al Pickett
Special Correspondent
As oil and gas prices recover, coiled
tubing drilling and workover units are
expected to be in strong demand as operators work to maintain production from
existing wells and begin completing the
large number of wells that have been
drilled but left uncompleted (DUCs). In
fact, while drilling activity remains slow,
some CT service providers already are
reporting increased workloads for CT
service rigs.
In the case of Titan PetroServices in
Midland, Tx., it is well completion work
that is keeping its rigs and crews busy
these days, according to Sales Manager
Kelly Grunewald.
"A lot of companies drilled horizontal
wells in unconventional resource plays
in the Permian Basin in the second half
of 2015, but did not complete them
because oil prices were falling," he relates,
noting that with completion costs coming
down and oil prices at least somewhat
stabilizing in recent months, operators
are starting to complete some of the
DUCs in their inventories.
"Our service comes in after the well
is fractured to drill out the stages and
clean the lateral to get it ready for production," Grunewald says. "The work
can be done with a conventional workover
rig utilizing jointed pipe, but in these
horizontal wells with two-mile laterals,
coiled tubing makes more sense and is
more efficient. It is much harder to get a
jointed pipe string out to 8,000-10,000
feet, especially when the well is 9,00010,000 feet in vertical depth, depending
on the deviation of the lateral wellbore."
While Titan is doing some re-entry
work, Grunewald says 80-90 percent of
his company's business in the past several
months has been well completions and
drill-outs in horizontal wells. "We remain
72 THE AMERICAN OIL & GAS REPORTER

fairly busy," he remarks. "When prices
recover enough that operators decide to
bring DUC and shut-in wells on line,
there will be a lot more CT work in the
Permian Basin."
Coiled tubing has a variety of applications-from workovers to stimulation
and drilling-but Jerry Robinson, technical
manager for Franklin Well Services in
Vincennes, In., says his company has
been busy this year with CT cleanouts of
gas storage wells, Class 1 hazardous disposal wells and Class II injection wells.
"Rex Energy is using coiled tubing to
clean injection wells and even lateral injection lines," Robinson states. "Some
companies are using coiled tubing for
re-entries to deepen wells to get down to
another zone, but most of our CT work
has been cleanups, followed by acidizing.
Without maintenance, you can have higher
pressure buildup in gas storage wells."
One of the companies Franklin Well
Services is working for is Ameren Illinois,
an electric and natural gas provider headquartered in Collinsville, Il. Allen Bues,
an engineering supervisor for Ameren's
gas storage reservoirs, says CT services
serve a couple of purposes for its gas
storage wells.
"We use coiled tubing to carry stimulant
fluids to the reservoir and not expose the
production casing to those fluids," he reveals. "We also use CT for cleanouts,
putting tools at the bottom of the coiled
tubing string to hydroblast the casing.
Cleaning the casing helps us better evaluate
the integrity of the casing with wireline."
Using CT cleanouts supports the company's approximately $400 million initiative over nine years to strengthen the
integrity, safety and reliability of its
natural gas storage and delivery system,
Bues details, adding that using a CT unit
in cleanout applications is faster and less
expensive than a conventional workover
rig. "You also do not have to kill the

well, so CT operations are a lot less expensive," he comments. "We will continue
to use coiled tubing regularly for well
cleanouts in our operations."
❒

Antero Completes First
Tyler County Utica Well
DENVER-Antero Resources Corp.
completed its first Utica well in Tyler
County, W.V. The Rymer 4HD has a lateral length of 6,620 feet and flowed into
sales lines for 20 days with an average
choke-restricted flow rate of 20 million
cubic feet a day, the company says.
According to Antero Resources, the
Rymer 4HD was the southernmost well
drilled to date in the West Virginia dry
Utica play. It says while results are preliminary and several more months of
flow tests are required, the well assists in
the evaluation of Antero's 188,000 net
acres underlying its Marcellus acreage
position in West Virginia and Pennsylvania.
Antero Resources also completed and
placed 14 horizontal Marcellus wells on
line in the fourth quarter of 2015. The
company says the average lateral length
was 7,777 feet and the average stage
length was 202 feet. During the quarter,
Antero Resources adds, it drilled and
cased the longest lateral in company history, the Nova Unit 2H, which had a lateral length of 14,024 feet.
❒

Coming In May
Guest authors examine best practices for managing multiphase production streams in unconventional
plays, enhancing compression in
gathering and midstream operations,
and compliance requirements for
new EPA emissions regulations.



American Oil and Gas Reporter - April 2016

Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2016

Contents
American Oil and Gas Reporter - April 2016 - Cover1
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American Oil and Gas Reporter - April 2016 - 3
American Oil and Gas Reporter - April 2016 - Contents
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