Rachael Seeley, Editor
An improved completion design that utilizes longer laterals and increased sand loadings is raising initial production (IP) rates for SM Energy Corp's Eagle Ford shale wells in Webb County, Tex.
In Area 1, in the northwestern portion of the county, three wells completed with the new completion design flowed 900 boe/d after 30 days online, a 60% increase relative to nearby wells, said Jay Ottoson, president and chief operating officer of SM.
The wells had an average lateral length of 7,000 ft and sand loadings of 2,000 lb/ft, compared to 4,400-ft laterals and 1,300 lb/ft sand loadings at nearby wells completed earlier. The new completions also yielded more condensate and had higher casing pressures.
Ottoson described the improvements in a presentation to the Barclays Energy-Power Conference in September. "We really think we're a leader in Eagle Ford drilling," he said.
The new design increased drilling and completion costs by $2 million/well to a total cost of $8 million/well. Scott Hanold, an analyst with RBC Capital, said the improved well performance is expected to more than offset the additional cost.
In a research note to investors, Hanold wrote, "We expect the additional well costs to be outweighed by increas
es in EUR [estimated ultimate recovery] and view this as a positive for the rest of SM's Eagle Ford acreage position."
SM tested similar completion changes in its adjacent Webb County acreage with positive results. Wells drilled in Area 2 had 5,000-ft laterals and utilized 2,000 lb/ft of sand per frac job, an 80% increase in sand volume from previous wells.
"What we saw was significant increases in productivity, as measured by flowing pressures, higher IPs, and higher condensate yield," Ottoson told the Barclays conference.
The average lateral length of SM wells drilled across the Eagle Ford this year will be 6,500 ft, Ottoson said, up 30% from the average lateral length in 2013.
SM is running five rigs in the Eagle Ford shale and will spend $930 million in the shale play this year, equal to 37% of its capital spending budget. The company's 190,000 net-acre position in the play includes 35,000 acres in Area 1 and 22,000 acres in Area 2. Anadarko Petroleum Corp. operates 25% of SM's acreage position under the terms of a joint venture partnership the companies have in the play.