Permian pure play operator — Approach Resources Inc. (ticker: AREX) – is carefully evaluating its completions in its Wolfcamp benches.
Approach holds 138,000 gross (120,000 net) acres targeting primarily the Wolfcamp A, B, and C benches. In its Permian acreage, Approach reported a proved reserves value of 156.4 MMBOE and also reported approximately 1,600 potential horizontal drilling locations.
Source: Approach Resources Inc.
Approach has also drilled over 170 horizontal wells to date in the Wolfcamp.
Enhanced completions
In optimizing its well production profiles, Approach has begun utilizing a new completion design with increased sand concentrations, between 1,800 and 2,000 lbs. per lateral foot, with approximately 60% 100 mesh sand. The new completions design also entails decreased stage spacing down to below 150 feet.
In keeping with both limiting completion costs and lessening environmental impacts, the company has also begun recycling approximately 70% of its completion fluid. The new completion design also utilizes more intensive engineering of its completion fluids with the intent to further optimize its stimulation. This intensive engineering includes the addition of chemical diverters and nano-fluids, or new surfactants.
Q1 review
During its first quarter of 2017, Approach produced an average of 11.4 MBOEPD, which was slightly higher than its 2017 guidance of approximately 11.3 MBOEPD. The company drilled three horizontal wells, two of which in the Wolfcamp A, and the third in the Wolfcamp C bench. Approach completed two horizontal wells, and—as of May, 2017—were completing an additional two wells and drilling one more. As of the end of Q1, the company was running one horizontal drilling rig in its Project Pangea asset with the intent to continue drilling operations at least through the first half of 2017.
As of the end of March, Approach had five horizontal wells lined up for completion—which contributes to an expected second quarter production rate of 11.7 MBOEPD.
Approach spent $13.4 million in capital expenditures in Q1, 2017 and $12.1 million of that was dedicated to drilling and completions activity. The remaining $1.3 million was dedicated to infrastructure projects and equipment.
Approach Resources Inc. is presenting at EnerCom’s The Oil & Gas Conference® 22
Approach will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
