"In South Texas, There’s a Refrac Party in Full Swing
When ConocoPhillips acquired Marathon Oil back in May, the $22.5 billion deal crowned COP the largest producer in the Eagle Ford with combined assets of 490,000 net acres, 400 MBOED, and 1,000 new drilling locations. The purchase also added more refrac inventory using COP’s own techniques already at work across its South Texas position. Then came summer with news of more Eagle Ford producers announcing refrac projects to reinvigorate crude production. Suddenly, the Eagle Ford and Austin Chalk have become party central for re-completions of declining wells to pump more oil. And the party ain’t over yet.
Reese Energy Consulting today is following the latest from South Texas, where the economics to refracture vintage wells identified as viable candidates are proving sweet—with initial rates of return typically north of 100% and often exceeding those of new wells. With new, lower-cost tech and tools, and payback between one and two years, refrac activity is expected to more than double this year. Count Eagle Ford producers like Devon Energy, BPX, SilverBow Resources, and Baytex Energy on the party bus, where refracturing has become a key component of their drilling programs and overall strategy.
But it’s Houston-based Verdun Oil Company, one of the last privately held producers in South Texas, that’s been driving that bus since 2018 when it completed the very first full linear isolation refrac in the Eagle Ford. Verdun has since completed 100 refracturing projects which continue to be major contributors to the company’s volumes and bottom line."