Multi-well Pad Drilling Cost Question

[James Jang + 8]

How much per-well cost reduction (in percentage) do operators realize, on average, by employing multi-well pad drilling?

I just want to have an idea of the magnitude of savings. For example, if a single well drilling costs $4 million, how much would a three-well pad drilling cost? It should be lower than $12.

 

[Justin Hicks + 162]

Here's an article that helps address your question. They quote a 25% savings overall, ( less labor, ductwork, rig moving etc) but I'd say 20% over a four well pad as compared to a single.

Either way, the savings add up throughout the fiscal year.

 

https://www.drillingpoint.com/p2847/cost-reduction-understanding-the-economics-of-multi-well-pad-drilling/

Edited March 25, 2019 by Justin Hicks
Added info

[butasha + 123]

Just as an FYI. In our area ConocoPhillips has started drilling 7 to 9 wells per lease and some pads have multiple leases per pad. 3 to 4 in the lower Eagle Ford, 2 to 3 in the upper Eagle Ford and 2 to 3 in the Austin Chalk and they are constantly re-evaluating what they will do next.

[Ian Austin + 131]

9 hours ago, James Jang said:

How much per-well cost reduction (in percentage) do operators realize, on average, by employing multi-well pad drilling?

I just want to have an idea of the magnitude of savings. For example, if a single well drilling costs $4 million, how much would a three-well pad drilling cost? It should be lower than $12.

 

Short answer - it depends on a number of things such as well spacing, Directional profile (ie: are you introducing more “hard rock” Directional work?), well durations (works better with a series of shorter wells, would fit with softer rock too). 

The logistical savings are appreciable. So are the savings on Facilities. 

Overall, generally a good thing, but you still should evaluate it on a case-case basis. 

Sounds dumb? Yes, but the ability to think critically about field development is worth a lot more (in the long run) than blind “CNTL C + CNTL V”

Edited March 26, 2019 by Ian Austin

[Tom Kirkman + 8,860]

26 minutes ago, Ian Austin said:

Sounds dumb? Yes, but the ability to think critically about field development is worth a lot more (in the long run) than blind “CNTL C + CNTL V”

Hi Ian, happy to see you de-lurked to post a thoughtful comment  : )

[Ian Austin + 131]

2 hours ago, Tom Kirkman said:

Hi Ian, happy to see you de-lurked to post a thoughtful comment  : )

Tom thanks. Didn’t know lurking was frowned upon. 

Been pretty busy as of late, so not a lot of time to post - the mood just hit this evening 

[Tom Kirkman + 8,860]

5 hours ago, Ian Austin said:

Tom thanks. Didn’t know lurking was frowned upon. 

Been pretty busy as of late, so not a lot of time to post - the mood just hit this evening 

No worries, nothing wrong with lurking, it was meant to be light hearted.

I'm up to my eyeballs in work these days too.  Implementing PMO + implementing Change Management + implementing Project Controls.  Never boring I guess.

[wrs + 893]

22 hours ago, James Jang said:

How much per-well cost reduction (in percentage) do operators realize, on average, by employing multi-well pad drilling?

I just want to have an idea of the magnitude of savings. For example, if a single well drilling costs $4 million, how much would a three-well pad drilling cost? It should be lower than $12.

 

According to my independent operator if he drills three wells using one rig on one pad he can save $2m on the three of them.  

Edited March 26, 2019 by wrs

[Ian Austin + 131]

20 hours ago, Tom Kirkman said:

No worries, nothing wrong with lurking, it was meant to be light hearted.

I'm up to my eyeballs in work these days too.  Implementing PMO + implementing Change Management + implementing Project Controls.  Never boring I guess.

To add, I consider all my comments to be valuable/pertinent.

I hope the irony comes across well enough - it’s like me saying “I’m special cause mom said I am”

Edited March 27, 2019 by Ian Austin