News Release

Grasping the Importance of Spacing and Parent-Child Well Relationships Emerging as Make-or-Break Distinction in Today’s Free Cash Flow Era

byAdam Baca

Austin, TX (September 24, 2019) – Enverus, the leading oil and gas SaaS and data analytics company, has released a new report in its FundamentalEdge series highlighting the importance of well spacing utilizing more than 300 comprehensive attributes in its calculations. Decisions on optimal well spacing are multidimensional and are a function of numerous geological, engineering, operational, and economic variables.

“Well spacing is complex and incredibly important in today’s current free cash flow era,” said Sarp Ozkan, Energy Analysis Director at Enverus. “As documented in this report and the case studies supporting it, understanding well spacing is like peeling back an onion. It is far more complex than something that can be understood by a single distance measurement. An inaccurate, simple spacing metric has ripple effects across all parts of the industry,” he said.

The report addresses some of the biggest challenges for U.S. onshore field development and points to various case studies indicating how proper spacing may result in less drilling, but more hydrocarbon production. Also, at the forefront of the industry, is the impact of parent-child well development and well interactions, raising questions about neighboring wells interacting with each other, potential degrading well performance, and offset well interference from newly drilled infill wells.

Key Takeaways from the Report:

  • Spacing is a complex problem. Solving it leads to optimal spacing within a drilling unit. Additionally, it is key to proper development of a particular formation in an area to get the highest per well returns and minimize productivity degradation and handle parent/child interactions.
  • Figuring out how to optimize well spacing to maximize productivity is an incredibly complex challenge. This changes from basin to basin, formation to formation, sometimes even section to section.
  • Understanding parent-child relationships and optimized spacing at a basin level is important to understand trends. It’s essential to get more granular and dive deeper to get the full picture and this requires a reliable, robust, and engineered dataset.
  • Enverus’ Well Spacing Solutions give the user the ability to dive through the most comprehensive Well Spacing dataset available. By combining geology, completion, production, M&A, and well placement and timing data sets rather than looking at well spacing metrics in a vacuum, Enverus reveals the important factors that impact operations and productivity.
  • The parent/child interactions, future field developments and inventory studies, cost savings through spacing pilot, and formation delineation programs must be mastered to facilitate operations excellence as well as deliver growth, cash flow, and returns for shareholders. Enverus’ Well Spacing Solutions is a comprehensive and technically robust well-spacing solution that can help companies navigate through all these challenges and drive value.

well-spacing-case-studies-press-release

Download the Preview and Charts

Members of the media can download the full 18-page Well Spacing & Case Studies or contact Jon Haubert to schedule an interview with one of Enverus’ expert market analysts.

Members of the media may also request individual operator reports from Enverus’ recently released Operator Intelligence Suite. Please indicate the name(s) of the company or companies you are requesting.

Picture of Adam Baca

Adam Baca

Related News

Breaking news alert on the impact on oil prices due to Israel attacking Iran
Analyst Takes Blog Topics
ByAl Salazar, Enverus Intelligence® Research (EIR) Contributor

In response to today's announcement that EOG Resources would acquire Encino Acquisition Partners for $5.6 billion, Andrew Dittmar, principal analyst at Enverus Intelligence® Research provided this commentary explaining the deal's significance.

Europe’s battery boom: 13 times more capacity by 2028 faces grid, regulatory roadblocks
News Release
ByEnverus

Enverus Intelligence® Research has released a market overview of the opportunities and challenges related to developing battery projects in Europe.

Vanishing renewable energy credits: US tax incentives may not be so critical
News Release
ByEnverus

Enverus Intelligence® Research has released a new report evaluating successful renewable energy development amid today’s federal policy uncertainty in the U.S.

Viper Strikes Rare Mineral Merger with $4.1 billion Sitio Buy
Analyst Takes Blog Topics
ByAndrew Dittmar

In response to today's announcement that EOG Resources would acquire Encino Acquisition Partners for $5.6 billion, Andrew Dittmar, principal analyst at Enverus Intelligence® Research provided this commentary explaining the deal's significance.

EOG makes its M&A move, bets big on the Utica in $5.6B deal
Analyst Takes Blog Topics
ByAndrew Dittmar

In response to today's announcement that EOG Resources would acquire Encino Acquisition Partners for $5.6 billion, Andrew Dittmar, principal analyst at Enverus Intelligence® Research provided this commentary explaining the deal's significance.

Enverus Intelligence® Research Press Release - Class VI applications signal slowdown
News Release
ByEnverus

Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has published the latest installment in its quarterly report series tracking developments in U.S. carbon capture and sequestration (CCS)...

Enverus successfully concluded its annual EVOLVE Conference, held May 12–15 in Houston, Texas. The company’s flagship customer conference brought together more than 700 leaders, innovators and decision-makers from across the energy value chain to explore the future of energy through the lens of generative artificial intelligence, market transformation and operational excellence.
News Release
ByEnverus

Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, successfully concluded its annual EVOLVE Conference, held May 12–15 in Houston, Texas. The company’s flagship customer conference brought together more than 700 leaders, innovators and decision-makers...

geothermal-energy-in-the-us
News Release
ByEnverus

Enverus Intelligence® Research (EIR) has released a report that analyzes how oil and gas operators can harness existing acreage and drilling expertise to advance geothermal power projects.

Enverus Intelligence® Research Press Release - Recap: How the Trump Administration is reshaping energy markets
News Release
ByEnverus

Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, today announced the release of “How the Trump Administration Is Reshaping Energy Markets.”

Find Out How Enverus Can Help Your Business

Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Get Started

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert