The objective of the Cost Neutralization Proposition is to offset the costs of adding FracBlack HT or OmniProp by measured reductions of the fluid and proppant volumes specified in the base fracture treatment design.
The so-called proppant intensity is defined as the pounds of sand added per foot of lateral. Optimizing proppant intensity in unconventional reservoir applications with sand proppants and slickwater has become increasingly popular. Production modeling and the reported experience of several O&G operators has shown that such practices may be to the wrong metric.
Increased sand volumes most typically require proportionally increased treating fluid volumes, and the increased costs of additional treating fluid and sand are frequently not justified by the value added from incremental production.
Recent studies indicate that a 20% increase or a 20% decrease in the sand intensity had a +/- 2% impact on the Cumulative Production (5 years), and less than 1% impact on the EUR.
The incremental costs of adding FracBlack HT at 2 – 4% bwop can be harmlessly offset by a 10 -15% reduction of the scheduled base treatment volumes. Any reduction in well production stemming from the reduced treatment volumes is offset by the +/- 30% average cumulative production uplift contributed by the addition of FracBlack.