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Permian Basin 2018

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PERMIAN BASIN: PRODUCTION FORECAST 82 | October 2018 | hartenergy.com of wells ranked and grouped according to Quin- tile Ranks (QR) covering many years, wells in the bottom ranks (QR4 and QR5) tend to have longer lateral lengths. The move to longer laterals closes the chapter on fi rst-generation solutions. Multizone completions Operators have been producing from multiple zones for years. A shining example is the Bakken/ Three Forks. Moreover, tapping into even greater number of zones has been a goal of many oper- ators. One science project that seems intent on pushing the boundaries is Encana Corp.'s Cube design, which just happens to be in the Permian. For years, we refused to give credit for large num- bers of hydrocarbon zones due to commerciality concerns. Being conservative in this area was the prudent thing to do. Hence, it is no small measure for us to make such a change. Until now, Stratas gave credit to no more than four productive zones in any square mile area. While changes will be made on play- by-play and case-by-case basis, Stratas now feels comfortable allotting up to six zones per section in the Permian. This change fundamentally raises our economic assessment of the Permian. In the coming months, Stratas will kick off an unconventional resource study and esti- mates of the Permian will figure prominently. As we mentioned at the outset of the article, the Permian is different. In the Permian, every- thing is bigger—bigger crowds, bigger capital, bigger rig counts, bigger well packages. In many respects, the Permian and its constituent mem- bers appear stronger than ever. There really is no substitute to being tested. Q

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