HOUSTON, Jan. 27, 2016 /PRNewswire/ -- Flotek
Industries, Inc. (NYSE:FTK - News) ("Flotek" or the
"Company") today announced the release of the study regarding the
effectiveness of the Company's suite of Complex nano-Fluid®
completion chemistries ("CnF®") in the Denver Julesburg Basin ("D-J
Basin") by MHA Petroleum Consultants, LLC ("MHA"). As noted in the
Company's press release of January 19,
2016, MHA was retained by the Special Technical Committee
(the "Technical Committee") established to review the efficacy of
CnF® and the Company's data analysis software.
The report, entitled "Effectiveness of CnF on Improving
Horizontal Well Performance, Greater Wattenberg Area – DJ Basin,
Colorado" can be found by
clicking on the icon in the upper right corner of the Flotek
website at www.flotekind.com.
Evaluation Scope and Methodology
Upon being retained by the Technical Committee, MHA defined the
scope of its evaluation of CnF® performance in three core operating
basins: the D-J Basin of Colorado,
the Permian Basin and the South
Texas Basin (inclusive of the Eagle Ford shale), both in
Texas. As noted in the press
release of January 19, 2016, MHA's
analysis began in the D-J Basin. MHA is continuing to study the
efficacy of CnF® in the two Texas
basins and the Company expects to release the results upon
completion of their work.
A complete description of MHA's methodology can be found in the
report available on Flotek's website. Highlights of the D-J Basin
study protocol include:
- The evaluation of 1,133 wells completed in the Niobrara
formation in three focal areas in Weld
County, Colorado. The three focal areas were selected
because they had the highest density of horizontal Niobrara wells
and provided a sampling of wells in both the northern portion (oil
prone) and southern portion (gas prone) of the study area. The
study focused on Niobrara completions as it is the dominant
completion target in the D-J Basin.
- The evaluated wells were identified and mapped to the study
area using the "Full Data Download" database from FracFocus.
FracFocus is the national hydraulic fracturing chemical
registry managed by the Ground Water Protection Council and
Interstate Oil and Gas Compact Commission. The site was created to
provide the public with access to reported chemicals used for
hydraulic fracturing and is used by many states as a means of
official state chemical disclosure. FracFocus data is
available in two formats: Well data available in Format 2.0
provides chemical descriptions in direct Data Download format and
was used by MHA to identify the presence of CnF® in the hydraulic
fracture fluid system. Well data provided to FracFocus prior to
Format 2.0 were evaluated by downloading individual well data PDF
files and reviewed to determine the presence of CnF®.
- MHA applied an additional qualification to its analysis, only
considering wells that had a minimum of 12-months of total
production. This qualification was intended to ensure that each
well evaluated had sufficient production history to accurately
quantify the productivity of the well.
- As FracFocus does not contain production data, MHA obtained
production data by matching the unique API well identification
numbers provided by FracFocus to the commercial well information
database provided by IHS Enerdeq Browser. The data analysis was
then conducted using application tools such as Excel and Aries, a
software tool provided by Landmark Solutions, a subsidiary of
Halliburton.
- MHA assessed the productivity performance of the wells (both
CnF® and non-CnF wells) using the first 12 months of cumulative oil
production and also using an Estimated Ultimate Oil Recovery
("EUR") over the life of the well. Both of these parameters were
calculated in terms of oil volume (barrels) and in terms of the
ratio of oil volume to the gross perforated interval length in the
horizontal well (barrels per foot). A higher calculated value for
any of the four possible parameters indicates greater well
productivity. A description of MHA's methodology for calculating
EUR can be found in the report available on Flotek's website.
The report found on Flotek's website provides additional
methodological details as well as limitations, qualifications and
assumptions related to the analysis provided in the report.
Results of D-J Basin Evaluation
Comparison
of Well Performance; Weld County, Colorado -- Percent Gain of CnF
(Horizontal Niobrara Wells Only)
|
Focus
Area
|
CnF Well
Count
|
Non-CnF Well
Count
|
Improvement in
Average first 12-month oil production
|
Improvement in
Average first 12-month oil production per foot of gross perforated
interval
|
Improvement in
Average Oil EUR
|
Improvement in
Average Oil EUR per foot of gross perforated
interval
|
Area
1
|
105
|
122
|
10.0%
|
46.9%
|
19.2%
|
58.4%
|
Area
2
|
348
|
123
|
7.4%
|
18.3%
|
12.1%
|
27.6%
|
Area
3
|
251
|
184
|
-2.7%
|
9.8%
|
-12.1%
|
1.4%
|
Source: MHA Petroleum
Consultants, LLC
|
The comprehensive results of the MHA's analysis can be found in
the report available on Flotek's website. When analyzing
performance using 12-month cumulative oil production, the report
states:
"As stated previously, it is the opinion of MHA that the most
meaningful comparison parameter in the above three tables is the
normalized 12-month cumulative oil volume per foot of gross
perforated interval. Using that parameter, the CnF wells in Area 1
showed the most substantial gain in productivity, as compared to
the non-CnF wells, with an improvement of 46.9%. Area 2 showed the
second best performance with the CnF wells showing a 18.3% gain
over the non-CnF wells. Lastly, Area 3 has the smallest
improvement, with the CnF wells showing a 9.8% gain over non-CnF
wells in this area."
MHA also studied the relative performance of wells using CnF® in
the fracture stimulation process and compared those wells to wells
not using CnF® using Estimated Ultimate Oil Recovery and states the
following:
"Area 1, the most oil prone of the three focus areas, showed the
highest gain in "EUR per foot of gross perforated interval" of
58.4% with the use of the CnF additive. Area 2 had the next highest
gain with 27.6%, while Area 3, the most gas prone of the three
areas, showed the smallest gain in productivity, 1.4%, associated
with the use of CnF."
MHA provided the following conclusions in the report:
"The results presented demonstrate that for Focus Areas 1 and 2,
the wells which used the CnF additive showed a significant increase
in both 12-month and ultimate oil production productivity
parameters. The results for Focus Area 3, which is the most gas
prone of the three areas, are not conclusive. Two of the parameters
show an increase in the productivity performance for the CnF wells
in Area 3, while the other two parameters project the opposite
result."
The Company urges interested parties to carefully read the
entire MHA report, including the limitations, qualifications and
assumptions of the research as outlined therein.
Next Steps
As noted in the report, "[T]he results presented in this report
are considered initial results specific to the areas studied within
the Niobrara formation in Weld County,
Colorado. MHA is now conducting similar investigations into
the effectiveness of the CnF® additive in the Eagleford play area
and the Permian Basin of Texas."
As those studies are completed, it is the Company's intention to
release them in a manner similar to the release of the D-J Basin
data presented here. In addition, once all of the analysis is
complete, Flotek intends to schedule a conference where it
will provide a comprehensive review of the methodology and
findings to interested parties.
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of
innovative oilfield technologies, including specialty chemicals and
down-hole drilling and production equipment. The Company also
serves commercial and industrial markets with a portfolio of
diverse chemical technologies. It serves major and independent
companies in the domestic and international oilfield service
industry. Flotek Industries, Inc. is a publicly traded company
headquartered in Houston, Texas,
and its common shares are traded on the New York Stock Exchange
under the ticker symbol "FTK."
For additional information, please visit Flotek's web site at
www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this Press Release constitute
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934) regarding Flotek Industries, Inc.'s business,
financial condition, results of operations and prospects. Words
such as expects, anticipates, intends, plans, believes, seeks,
estimates and similar expressions or variations of such words are
intended to identify forward-looking statements, but are not the
exclusive means of identifying forward-looking statements in this
Press Release.
Although forward-looking statements in this Press Release
reflect the good faith judgment of management, such statements can
only be based on facts and factors currently known to management.
Consequently, forward-looking statements are inherently subject to
risks and uncertainties, and actual results and outcomes may differ
materially from the results and outcomes discussed in the
forward-looking statements. Factors that could cause or contribute
to such differences in results and outcomes include, but are not
limited to, demand for oil and natural gas drilling services in the
areas and markets in which the Company operates, competition,
obsolescence of products and services, the Company's ability to
obtain financing to support its operations, environmental and other
casualty risks, and the impact of government regulation.
Further information about the risks and uncertainties that may
impact the Company are set forth in the Company's most recent
filing on Form 10-K (including without limitation in the "Risk
Factors" Section), and in the Company's other SEC filings and
publicly available documents. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this Press Release. The Company undertakes no
obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the
date of this Press Release.
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SOURCE Flotek Industries, Inc.