On paper, the case for widespread industry adoption of refracturing seems straightforward. Refrac treatments can be performed at 40-60% of a new well drill cost with several published examples of treatments increasing production rates by 7 to 20 times pre-refrac rates (SPE-194338, SPE-194372, SPE-199701). Additionally, survey data of Darcy's members suggests there are many opportunities to apply refracs, with the majority of respondents interested in both stand alone and parent well defense applications.

Darcy members can see full survey results from the refrac session here

Despite the large potential, it's no secret that full adoption of refracturing remains limited across the industry. At Darcy's recent technology forum on the topic of cemented liner refracs, only 17% of members surveyed reported that their organization was actively piloting or regularly performing refracs.

At the heart of the discrepancy between the stated potential and actual adoption of refrac technologies lies one significant issue: Production uplift uncertainty of refracs vs new well D&C.

Darcy members can see full survey results from the refrac session here

The challenge is particularly difficult to overcome because of its "chicken-and-egg" nature. Production uplift is uncertain because of limited adoption and adoption is limited because of high uncertainty of results. To break this cycle, several operators are turning to techniques that enable full isolation of the wellbore vs the less costly and more widely adopted bullhead with diversion or "pump and pray" refrac method. Survey data collected from Darcy's E&P members indicates that cemented liners have been tested significantly more than any other method besides bullheading.

Darcy members can see full survey results from the refrac session here

As discussed at the Refrac Forum (Full Video Recording available to Darcy members), several technologies, such as Vertice Oil Tools V-RELEASE system, are reducing the costs and risks of cemented liner refracs. These technologies, and others outlined in our Refrac Technology Framework, will be needed to further improve the economics of refracs and help build the industry's refrac run history.

Have thoughts about where the industry should (or shouldn't) go from here to further adopt refracs? Log into Darcy Connect and post a comment to this blog post to discuss with your peers!