An Interdisciplinary Economic Appraisal of Plug-And-Perf Versus Single-Point Entry Completions Systems Using Simulation

Abstract

Abstract Selecting which formation access and interstage isolation approach is economically superior is difficult to assess due to the complex interactions of these systems’ impact on drilling and completions cycle time and cost and well performance. An integrated view is necessary to assess the economics of single-point entry sleeve completions systems and plug-and-perf systems. The difficulty is exacerbated by the uncertainty of the percentage of effective plug-and-perf clusters. This paper documents the use of commercial simulation software to precisely estimate the daily cashflows for the life of a well pad (from rig move to decommissioning) using designs based on each system. The plug-and-perf cluster efficiency percentage is swept, and the percentage at which its economics breakeven with the single-point entry scenario is calculated. This is performed for multiple subsurface areas whose well performance vary differently from one another as effective cluster spacing changes. Using NPV/section, it was discovered plug-and-perf scenarios needed a cluster efficiency between 38-52% to breakeven with the corresponding single-point entry scenario. However, these results are highly dependent on an operator's contractual frameworks, well performance, and well production constraints.