Drilling Times Coming Down
In the early 1980's, when interest rates were extremely high, a consultant with a bank was assigned to a company struggling beneath a huge debt burden and a sluggish economy. I was involved merely as an onlooker...an amazed onlooker, I might add, after what I heard next...
This consultant, speaking with the seriousness of a policeman handing out a ticket, informed board and management of the need to do the following:
1. Increase Revenues
2. Decrease Expenses
I truly believe the consultant considered this sage advice to be unique, as if it had been created by divine inspiration and passed along to this anointed one for the purpose of sharing to the world. And, I suppose the consultant would be right, for now I repeat this advice on behalf of these oil operating companies in the TMS.
All you folks need to do is to increase income and decrease expense and the TMS will be a success.
In fact, these oil companies have been working hard on both ends of the spectrum for several years now (as had the company I mentioned above, which is doing quite well today, thank you).
One of the key areas for needed improvement for our TMS operating companies has been in the drilling times for these wells.
There have certainly been some struggles in drilling wells in the past and there will always be incidents along the way. That said, it is encouraging to note that the last several wells have been reported or rumored to be drilled in excellent times.
29 Days - 6,800' lateral Goodrich Verberne, as reported via news release yesterday.
24 Days- No lateral length reported - Sanchez St. Davis, rumored to have completed last Friday
28 Days- No lateral length reported-EnCana Sabine 12H-2, completed early last week.
31 Days- No lateral length reported-Halcon George Martens, et. al., completed around 9/8/14
39 Days - 7,600' Goodrich Spears 31-6H-1, completed in late August.
The Sabine drill was assisted by the time savings involved in drilling 2 wells. The others were not.
Time is most definitely money when it comes to drilling.
IF these companies are able to bring average drilling times down to 30 days or below, and this is increasingly becoming a possibility, then a major hurdle will have been overcome in the TMS.
Is 20 days even a possible average? With the success of late, it wouldn't surprise me.
Keep it up folks!
And, remember, to have success in the TMS all you have to do is to increase those revenues and decrease those expenses.