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Permalink Reply by jffree1 on October 8, 2013 at 9:10

Skip pointed out that the PACE story had a 2006 publication date so I guess this is only news to non-industry types like me. I knew a couple of years ago that they were able to skid a rig but that still seemed like a large undertaking.

The statement that they could change location in a few minutes seems like a huge innovation so is this just new to this area? It looks like something that might have been (probably was?) designed for pad drilling in Alaska or the Rockies. Anyone?? Beuller?

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Permalink Reply by dbob on October 8, 2013 at 12:37

Jffree

In 2008, the Haynesville was a a low cost play.  In the rush to drill the first unit well, this often wasn't a primary consideration.  At that time, we were looking at between 50' to 75' between wells when moving a rig onsite.  I think more of the rigs were being partially or largely broken down.  

I've heard about 8 hours for a move from the completed well to the new hole on the rigs that walk or skid.  

If folks aren't doing so already, there may be a potential to slightly reduce diameter from the top down and speed up drilling rates and reduce casing costs.

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Permalink Reply by CB on October 8, 2013 at 13:20

Dream on, eternal optimists.

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Permalink Reply by jffree1 on October 8, 2013 at 15:56

Well cost is always relative to the price of gas but the Shelby Extension of the Haynesville has always been high cost because they didn't really get started over here until very late 2009 into early 2010 and the gas price had already plummeted from the 2008 highs. They just had to keep drilling to hbp all those really expensive leases. The greater depths and high temps and pressures make for considerably more expensive wells here than in Panola Co. or Desoto Parish, too, so anything that lowers well cost will be welcomed if/when operators return to this area.

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Permalink Reply by jffree1 on October 8, 2013 at 14:58

More research on the PACE-X rig indicates that the PACE trademark may be five or six years old but the X class rig was designed for shale plays and pad drilling and is fairly new with only five rigs in service by the end of 2Q 2013 (3 in Haynesville).

Nabors 1Q 2013 presentation has several pages which explain some of the differences in a skid-able rig and a walking rig (PACE-X). See pages 18-22. 

Attachments:

• 1Q13 Conference Call Presentation 042313.pdf, 2.9 MB
• nabors_pace-x_rig.pdf, 389 KB
• PACE_X_rig_brochure.pdf, 1.8 MB

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Permalink Reply by Skip Peel - Mineral Consultant on October 8, 2013 at 15:07

Impressive advance in rig mobility.  Maximizes drill time and lowers well cost. 

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Permalink Reply by Steve P on October 8, 2013 at 15:25

great post.  thanks

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Permalink Reply by Gatrpaw on October 9, 2013 at 15:01

One thing these links above don't mention is these rigs are hot as the dickens to work around in the summer around here. In the design features to make the rig movable with non-permitted loads they also tightened up open air spaces around the equipment. They were also intended to be well suited for cold environments which makes them hot in summer.

When talking about the cost. These "X" rigs command a higher day rate than the smaller conventional and skid rigs are getting. The trade off comes often times in other benefits from the "X" rigs capabilities and not base cost.

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Permalink Reply by jffree1 on October 10, 2013 at 3:14

Thanks, GP. I had noticed how the area under the floor looked like a big box. I assume that is where the hydraulics for the 'feet', the accumulator & the choke manifold are housed?   Surely they will have to figure out something on that heat problem if it is or becomes a health & safety concern down here in the south. 

New technology is always expensive in the beginning because of the R&D costs but do you think the rig will make enough of a difference to create demand for the rest of the new fleet they have planned? I think there are another 15 or 16 rigs to be built if I understood correctly.

Can you tell us anything else about the other new features on this rig? I don't really know enough to ask about anything specific like the cab & controls, etc... 

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Permalink Reply by Gatrpaw on October 13, 2013 at 11:33

Jffree,

I wish I could answer all your questions but the links you provided are what I feel would be the specifics Nabors wants to be made public. These are some super nice rigs though and my opinion is they will certainly have a place in the industry as more mega pads are utilized for the long horizontals being drilled today. I think they are also great options for the even deeper wells now being considered in zones not yet tested with modern technologies.

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