An Investigation into Refracturing Operations in the Barnett Shale Play

Abstract

In an attempt to maintain production levels during times of depressed pricing, some are exploring the practice of refracturing already hydraulically fractured wells currently within their operating portfolio. This study investigates the last two years of data of the refracturing program that was initiated by Devon Energy Corporation in the Barnett Shale play.

The purpose of this study was to identify the wells refractured in the Barnett Shale from publicly available data and completion filings. Data was collected from Drillinginfo.com, IHS.com, and FracFocus.com for these wells. Estimated ultimate recovery for these wells were generated with the aid of a reservoir engineering software program. Cost estimates were performed for each well based on comparable industry expenditures and completion methodology assumptions. All data collected and subsequent calculations were compiled into a database compatible for upload into a statistical analysis software program. Ordinary least squares regressions were performed within a statistical software program with the following objectives:

Validate some published conclusions that suggest reservoir quality indicates refracture potential; Identify candidate characteristics with the best internal rate of return potential; and Investigate whether a correlational relationship exists when dummy variables are assigned to the use of chemical diverters.

The findings suggest a positive correlation between reservoir quality and refracture initial production potential. When combining the production history with this study’s completion and cost assumptions, the vertical and directional wells are ranked as more attractive refracture candidates in terms of internal rate of return. Chemical diverters showed no correlational relationship with refracture initial production values.