EnCana indicated on their conference call today that they have successfully re-fraced 2 wells, are preparing to re-frac 5 more and are looking at an additional 30 after that. They indicated the cost per re-frac is approximately $1 million and the payback is only a matter of months. They will be studying other shale plays to see if re-fracs make sense in those. They indicated that these re-fracs would result in the highest return on capital in their entire portfolio. This should end the debate about the plausibility of re-fracing wells in the Haynesville once and for all.
Link to webcast. Haynesville Shale portion begins at 22:58.
You would think EnCana may first refrac the wells who's original frac was sub standard or may have later failed. Did you understand the article to say EnCana may refrac older well which have experienced a normal decline curve. THANKS
In the webcast Encana did not provide any specifics as to how the first test wells were chosen.
EnCana is really strong in the Holly Field. I think that is where you will see a lot of improved production
We are in a section in Desoto that had the first Refrac, so we should know pretty soon about results
I had heard a while back that other companies including Encana were working on refracs and their feasibility. Anyone else heard of other companies?
If a re-frac in the Haynesvillre is highest return on a $ of capital for EnCana, you can bet that it will be for the other Operators as well. In the current price environment for gas, re-fracs would have to make more sense than drilling alt unit wells, at least until you reach diminishing returns from the re-fracs.
From Exco earnings
In addition, we recently completed our first refrac stimulation test in DeSoto Parish. This test consisted of a second fracture stimulation treatment in an existing well to re-stimulate the shale reservoir near the wellbore. The refrac stimulation resulted in an increase in production for this well of 1.2 Mmcf per day on a more restricted choke. We expect to perform a similar treatment on other wells in the region and have plans for a second refrac stimulation during the third quarter 2014.
Well we have a well in another section in Desoto where EnCana is operator and we haven't heard about any refracs on it; however we got our June ck today and it was $600 higher than previous month with a lot more volume. Will be interesting to see if next month's ck is higher. Still nothing on Sonris about it
@Birdsview, the only refrac I have heard of in that area is sec. 18 or 14/14. Is EnCana the operator in Sec. 19? They seem to be the ones who are innovative in developing this "refrac" technology