Abstract

Lateral length is of primary importance to the production, and profitability of an unconventional oil well. Given the constraints of land, time, and engineering it is not always possible to capture the legal maximum of lateral length. As we mature in our field development processes in the Permian it is critical we gain a better understanding of the root causes, economics, and possible remediation of lateral length left behind. Utilizing publicly available pre-drill, and as-drilled plats the legally possible, planned, and executed lateral lengths are measured for wells completed in Martin County, Texas within the period of January 2016 through July 2018. The data set of over six hundred wells is used to highlight whether lateral length is being lost in the heel or toe of wells, and if it is loss due to planning or execution of the wells. Additionally, operators are compared to “look over the fence” and observe best practices. Preliminary results indicate that the majority of lateral left behind occurs in the heels, and it is mostly due to inefficiencies during planning. The best remedy for this category of lateral left behind is off lease surface locations or aggressive back builds. While not the most surprising result, further analysis of the economics of the lost footage and stages reveals the opportunity cost of leaving lateral uncaptured.