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refracs · well economics · production analysis

Measuring the Impact of Refracs on Well Economics: A Data-Driven Approach

Discover how to assess the effectiveness of refracs in revitalizing mature wells and understand their impact on overall well economics. Learn how to use production data to make informed decisions.

Understanding Refracs and Their Role in Well Revitalization

Refracs, or refracturing operations, have become a crucial strategy for operators looking to revitalize mature wells and squeeze more hydrocarbons out of existing assets. By re-stimulating a well, operators can potentially restore or even increase production levels, thereby extending the well's economic life. The Wellsite data lake contains a vast record of production data before and after refracs, offering a unique opportunity to assess their effectiveness.

Assessing Refrac Effectiveness Through Production Analysis

To measure the impact of a refrac, one must analyze the well's production profile before and after the intervention. A key metric is the change in decline rate: a successful refrac should result in a noticeable flattening of the decline curve. By comparing the pre- and post-refrac decline rates, operators can gauge the effectiveness of the treatment. The Wellsite platform allows users to easily access and analyze this data, enabling them to benchmark a well's performance against its pre-refrac baseline or against similar wells in the area.

Quantifying the Economic Benefits of Refracs

Beyond assessing the technical success of a refrac, it's essential to quantify its economic benefits. By analyzing the increase in production and the associated revenue, operators can determine whether the refrac has improved the well's economics. This involves calculating the additional barrels or mcf produced as a result of the refrac and comparing them to the costs incurred. The Wellsite data lake provides the necessary production data to perform these calculations, allowing operators to make data-driven decisions about future refrac candidates.

Case Study: Evaluating Refrac Impact on a Mature Well

Consider a well in the Permian Basin that underwent a refrac after showing signs of decline. By analyzing the production data from the Wellsite data lake, we can see that the well's decline rate flattened significantly post-refrac, resulting in an additional 50,000 barrels of oil produced over the next 12 months. Using the average oil price for that period, we can estimate the additional revenue generated by the refrac. By comparing this to the cost of the refrac operation, we can determine the treatment's economic viability.

Conclusion

Refracs can be a valuable tool for operators seeking to maximize the potential of their existing assets. By leveraging production data and analytics, operators can assess the effectiveness of refracs and make informed decisions about their well economics. The Wellsite platform provides the necessary data and tools to support this analysis, enabling operators to optimize their refrac strategies and improve overall field performance.