Oklahoma 2018

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OKLAHOMA: TECHNOLOGY 26 | November 2018 | Walker, Chaparral's vice president of completions and operations. "We have a pretty good dataset now to look back on, and between the empirical results and fiber-optic tests, you can see some of them perform better than others. Some of what has been pumped, not just in the area but all over, really isn't giving the result that you would hope for. We're in the process of testing some new divert- ers, which look to be addressing that issue, by doing a better job of taking where a frack is going and plug that up and push that into the clusters that aren't taking it." Walker's goal is what he calls the "Holy Grail"— no intervention, no wireline and no drillout. "In the areas where we can't circulate it makes a lot of sense," Walker said. "You're not going to cement, so you just run these uncemented sleeve systems where now the cemented systems that can mimic plug and perf are becoming a bit more viable. For a while they were pretty cost prohibi- tive and unproven. The combination of those two things made it difficult to go down that path, but both of those are being fleshed out and something we are continuing to look at." Chaparral has been laser focused on cost since its emergence from bankruptcy—questioning every dollar spent. Walker has only been with the com- pany for a few months but can already see the dif- ference when it comes to the company's emphasis on saving when and where it can. "There is not a month that goes by that every number that can be scrutinized isn't scrutinized," he said. "I think that is where a lot of the changes and how we are able to drive costs down come from. On the production and engineering side, we have created some efficiencies, which allow us to do more with less. We are utilizing automation in a strategic way to allow people to do more and be more effective at what they do." Miller added, "We have a number of things that help us keep costs down ranging from orga- nizational structure to well designs to longer term third-party partnerships. For example, we have our own construction crews, so we build our own loca- tions, which, when looking at our AFEs [authority for expenditure], we're probably 50% of what our third parties cost. In addition, our procurement team did a great job getting out in front of the steel tariffs and purchased or optioned the rest of our 2018 pipe inventory at a significantly discounted rate, so we have kept the price down on our tubu- lars. We also have a one-year contract with EcoStim on the stimulation side, which we can extend for 2019 at similar pricing if we choose to do so, which we think is very competitive with the market." Touting turbine tech Service provider EcoStim Energy Solutions is mov- ing to harness oilfield efficiencies on two fronts— one via its Super Fleet concept, the other a product of its turbine-powered pumps. In Oklahoma the contractor has adopted the Super Fleet approach with its client, Chaparral Energy, committing a higher number of resources, both equipment and personnel, with a focus on conducting required pump maintenance on site but not online. "We've adopted a plug-and-play approach with the equipment where we can pull a pump, for exam- ple, offline and replace it with a pump that has had its maintenance done," said EcoStim COO Barry Ekstrand. "So, the swap is very quick as compared to shutting down between stages and doing pump maintenance online, which may cost you in time several hours. It is all about efficiency, and it's been paying off." The company had been running two smaller fleets in the area, and maintenance activities repre- sented productivity gains that the company felt it could achieve. By adding equipment and people to the project, EcoStim could conduct maintenance in a more efficient way and kick up the output by as much as 50%. The result has been a more proactive approach to maintenance. The company is able to rotate working pumps offline for maintenance on a schedule before downtime is incurred. "Chaparral has a solid drilling schedule, and it was our goal to provide as much support to their completion operation as possible, so we decided it would make more sense for us to try to make our fleet more efficient and get more done in a given day," said Lyoid Fussell, vice president of sales and technology at EcoStim. "So far that is really how it has panned out. It has been going really well. I think they are pleased with it. I know we are."

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