Conoco next gen test wells Vintage 5 (V5) 20% recovery and say " We can do even better "

[Jabbar + 465]

Conoco applying their research and technology testing Vintage 5 wells notes great results.  The results are impressive. They are testing the the process at three pads in Eagleford and start of one in the Permian Delaware.  

* Conoco in part references their advances as "Solving The Stack"  Note, the new technology and processes are not meant to increase IP but rather increase the total resource RECOVERY TO 20% !  This results in high margin sustainable profits.  

Conoco said they have only frac 25% of their Eagleford and have decades (plural = many) of production to come.

PARENT / CHILD WELLS

One of the major shale put downs by the Shale Haters (certain journalist, analyst and OPEC) is the problem of child/parent interference decreasing production. Conoco believes their technology and methods have resolved this conundrum. As a result of their analysis and test Conoco says in the Delaware basin they will drill 12 TO 16 WELLS PER SECTION !

The goal of optimizing production from a section hopes to obtain (a) no overlap of drilled wells and (b) minimum "gap" between wells.  Conoco is well on their way to making great gains in this area.  Many will follow.

RS Energy wrote a report on Conoco's developments called "Kids Are All Right".

Conoco developed and enhanced 5 Completion Technologies applied in full or part to (a) the next gen Vintage 5 wells and (b) the refrac of the vintage 1 and vintage 2 wells.

 

REFRAC PRODUCTION SUB $30 COST

Separate but equally important is the results Conoco has accomplished in their refrac efforts.  With their methods developed Conoco is producing oil from refracs at cost below $30.  

This disclosure portends the future of U.S. Shale.  There is a bifurcation within the producers . Those that have have the size and means to take advantage of all the efficiencies and technology . . . .  and those that don't.  

Production to slow (but still grow) a little in 2020. This "pause" will accommodate the "consolidation" , the last step in the U.S. the Shale Industry.

( at least  of U.S. Shale.  Argentina Vaca Meurta could be bigger than Permian)

 

Edited November 22, 2019 by Jabbar

[PE Scott + 563]

9 minutes ago, Jabbar said:

Conoco applying their research and technology testing Vintage 5 wells notes great results.  The results are impressive. They are testing the the process at three pads in Eagleford and start of one in the Persians Delaware.  

* Note, the new technology and processes are not meant to increase IP but rather increase the total resource RECOVERY TO 20% ! 

Any links to articles on the subject?

[Jabbar + 465]

16 minutes ago, PE Scott said:

Any links to articles on the subject?

Conoco's INVESTOR DAY that took place Nov 19.  

Replay on their website under "investors".  Fast forward to the "Lower 48" section .

Talks about increased production on two separate areas.  

1. Refrac the Vintage1 and Vintage2 generation wells.

2. Production and Recovery from Vintage 5 wells greater than 20% .

 

Edited November 21, 2019 by Jabbar

[PE Scott + 563]

1 minute ago, Jabbar said:

Conoco's INVESTOR DAY that took place Nov 19.  

Replay on their website under "investors".  Fast forward to the "Lower 48" section .

Talks about increased production on two separate areas.  

1. Refrac the Vintage1 and Vintage2 generation wells.

2. Production and Recovery from Vintage 5 wells.

 

Thank you, I'll take a look.

[ceo_energemsier + 1,818]

ConocoPhillips Counting On US Shale To Bring In More Cash

The U.S. independent has set its sights on bringing in $50 billion in free cash flow over the next decade, including $19 billion from its Lower 48 assets.

 

U.S. independent ConocoPhillips Co. aims to generate about $19 billion in free cash flow between 2020 and 2029 from its Lower 48 assets with the Permian Basin, Bakken and Eagle Ford Shale—the so-called Big 3—leading the way.

“We now have 6.5 billion barrels at less than $40 cost of supply in the Lower 48. Six billion barrels of that is in the Big 3 and that’s grown by about 1 billion barrels since our last Analysts Day in 2017,” Dominic Macklon, president of the company’s Lower 48 region, told analysts Nov. 19. “No greater than 97% of those increases have been organic, driven primarily by successful results in additional benches in the Delaware and improved well performance in the southwest area of Eagle Ford.”

The goal is part of the company’s 10-year plan that targets about $50 billion in free cash flow, limiting spending to less than $7 billion over the next decade as it grows annual production by more than 3% on average.