Operators everywhere are looking for increased efficiency and lower service costs to ensure their economics remain viable despite the low oil price.
The goal is maintaining cashflow, and this means that production must remain high. The problem is that finding any extra barrels must now be achieved within the restrictions of tightly controlled capital expenditure.
Vertical wells can deliver increased production in a time of capital discipline
When oil prices were high, capital was free-flowing and the focus was on developing technically complicated (and expensive) horizontal and unconventional wells.
3 real benefits from perforating with TriStim
Increased well performance and lower operating cost by delivering better well conductivity.
Greatly enhanced tunnel geometry (bigger)
Reduction in perforation damage (cleaner)
Increased penetration (deeper)Find out more
Many operators are now examining their legacy portfolio of mature wells to identify assets that have potential to deliver the much needed extra barrels without incurring capital expenditure.
Mature fields are often shallower and they can be brought back into production at low cost using simple vertical rigs.
This is why vertical wells are currently getting lots of attention. They can be drilled simply in days rather than the months it takes to drill complex horizontal wells.
Reuters cites Baker Hughes data showing that the North American vertical rig count rose 20 percent to 120 from early June to September 4, while the horizontal rig count slipped 2 percent to 659.
“It makes more sense to develop vertical wells in a lower price environment because they are not growth plays but they are a very strong cash flow asset,” Benjamin Shattuck a principal analyst at Wood Mackenzie told Reuters. “They are going to give you that cash flow that you need today” he said.
The role of perforating in delivering more barrels and maintaining cash flow
One of the simplest ways to increase the productivity of an asset is to create a better connection with the reservoir. For depleted wells, and wells with marginal (or even non-viable) economics, perforating with TriStim has been shown to improve flow and increase productivity.
Computation Fluid Dynamics (CFD) modelling conducted to evaluate the comparative effects on production with TriStim has shown that productivity increases could exceed 50% versus a conventional system.
However, as well as making depleted and uneconomic assets viable again through delivering a better perforation, the TriStim gun can deliver additional cash flow benefits by cutting the time taken to exploit individual wells by reducing the lifecycle cost.
Perforating vertical wells with TriStim will deliver tangible cash flow upside to operators looking to maintain production levels in the downturn. It does this by delivering better well conductivity in three simple ways;
- Greatly enhanced tunnel geometry (bigger)
- Reduction in perforation damage (cleaner)
- Increased penetration (deeper)
Learn more when we present TriStim at ATCE next week
Our own Paul Lynch will be speaking more about how TriStim can deliver increased production when we present at the SPE Annual Technical Conference and Exhibition (ATCE) in Houston 28-30 September 2015.
We’re very pleased that TriStim has been selected for ENGenious which is presented by JPT Young Technology Showcase and which showcases “groundbreaking technologies in the oil, gas and energy sectors”.
Paul will be giving a presentation on Tuesday 29th from 1400 in the Session “Highlighting Drilling and Completions – Completions Focused“.
If you’re going to be at ATCE, please come along to the talk! We’d love to hear from you before as well and maybe even arrange a meeting. Simply click the button below to get in touch.
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