First multi-well pad yields average of 2,120 BOEPD per well
PetroQuest Energy (ticker: PQ) has announced the results of its first multi-well pad in the Cotton Valley, showing encouraging results.
The three wells drilled in this pad had a combined 24 hour IP of 38,167 Mcfe/d, split between 27,697 Mcf of gas, 1m678 bbl of NGLs and 67 bbl of oil. Two of the three wells, PQ #23 and PQ #25, were completed in the E-berry bench of the Cotton Valley, one of PetroQuest’s primary target zones. The other well, PQ #24, was the company’s first horizontal well targeting the E bench. Unfortunately, PQ #24 experienced difficulties with the directional drilling tools, which meant much of the well was off target. Considering the issues encountered, PetroQuest considers the initial rate of the well quite encouraging.
Varying completion intensity, collecting microseismic will support next gen completions
PetroQuest varied the intensity of its frac jobs in the pad to allow comparisons between frac size and productivity. While the results are still early, it appears that larger fracs give stronger returns. PetroQuest reports that PQ #25 used the largest volume of proppant per lateral foot and has the highest IP rate of any of its Cotton Valley wells.
Production data from these wells, when combined with microseismic data collected during the fracturing process, will be used to drive a new completion generation for PetroQuest’s Cotton Valley wells.
So far this year, PetroQuest has drilled and completed five wells, and plans to drill and complete four more by the end of the year. Three further wells will be in progress at year-end.
Production guidance increasing
These newly-drilled wells, including this three-well pad, have shown strong results so far. These results have led the company to increase its production guidance for Q2 and Q3. At the moment, PetroQuest has about 6 MMcfe/d of production shut-in due to repairs to a third-party pipeline in the Gulf. Q3 guidance assumes this production will be restored at the beginning of August.
Charles T. Goodson, Chairman, CEO and President of PetroQuest commented on the results of the company’s three newest wells, saying “One of our stated goals for 2017 was to double daily production from approximately 50 MMcfe in December 2016 to approximately 100 MMcfe by the end of 2017. With the operational success, continuous improvement and production growth we have had to date, we are making great progress toward this goal, which should ultimately benefit our relative leverage.”
PetroQuest CEO Charles Goodson is presenting PetroQuest Energy, including an update of the company’s Cotton Valley results, at EnerCom’s The Oil & Gas Conference® 22 in Denver, Colorado, at the Westin Downtown Denver. The conference runs Aug. 13-17, 2017. For registration details please visit the conference website.
