US SHALE PLAYS 

PRODUCED WATER 

MANAGEMENT 

CONGRESS 

OCTOBER 2015 

JJ TINTERA

JOHNJAMESTINTERA@GMAIL.COM 

Refracturing 

The Next Generation 
“Refracturing Remains a 

 Boutique Technique”

... EMILY MOSER, HART ENERGY - MONDAY, JULY 13, 2015 

! Recompletions of horizontal wells. 

! “The technique—commonly referred to as refracturing—has 

a long way to go before it can become the next chapter in 

the shale revolution” ... Christopher Robart, IHS Energy. 

! So far, limited refracturing results offer solid but somewhat 

skewed initial production (IP) rates, gentler declines in 

production and variable costs. 
Boutique? 
Refracturing

! Halliburton Co. (HAL), which owns a recompletion 

line, estimates 50,000 wells in the U.S. are 

refracturing candidates, according to a Bloomberg 

report. 

! Only a small share, about 1-2%, of shale wells today 

have been refractured, however. IHS predicts that by 

2020 refractured wells will account for as much as 

11% of horizontal wells fractured in the U.S. 
A 1⁄2 Billion Dollar Bet on the Future 

! Halliburton Co (HAL.N) said it had tapped BlackRock

Inc (BLK.N) for $500 million to help fund drilling in 

existing shale wells, the first such move by a major 

oilfield services provider 

! “Though a relatively small market today, we see 

significant runway for refrac in the future," Halliburton 

President Jeffrey Miller 

! The funding will accelerate Halliburton’s refracturing

operations. 
Quote of the Day! 

“Touted as shale’s version of enhanced oil recovery, 

refracturing involves re-entering and restimulating

existing shale wells to boost production .......” 

http://www.theoilandgasyear.com/

July 21, 2015 
The Water Wars with Hydrofracturing 

are not over!

Are we , as an Industry, ready? 
How do we get ready? 

"An analysis of Texas regulations, statutes, and 

industry practices that create the framework for the 

safe and economic production of unconventional 

reservoirs through re-fracturing, and identify 

opportunities to nurture and extend the Texas shale 

revolution“ ... JJ Tintera
 Texas White Paper: 

Re -Fracturing and the Texas Shale Revolution 

! The foundation of the Texas "shale revolution" is 

technology. 

! While refracturing is not yet widespread, these 

technological advances threaten to outpace the 

existing economic, regulatory and statutory 

framework in Texas. 

! The good news is that, unlike commodity prices, it is 

possible to directly address and improve pre-existing 

rules, statutes and frameworks on unconventional 

reservoirs. 
Re -Fracturing 

and the Texas Shale Revolution

Principles underlying the approach to the intended 

analysis are two fold. 

1. First, is the belief that sustainable and 

unconventional oil and gas development in Texas

is not just possible but is good for all Texas 

residents. 

2. Second, is the assumption that economic 

incentives, not mandates, will provide the best 

opportunities. 

 
White Paper Topics

! Define "re- fracturing“ 

! Document existing statutory framework 

! Evaluate impacts on communities 

! Evaluate water use, reuse and recycling 

! Evaluate impacts on emissions 

! Identify economic impacts 
White Paper Topics 

! Identify opportunities to improve or adapt the existing 

production practices, regulatory framework, and 

statutory foundation 

! Identify potential tax incentives for re-fracturing both 

oil and gas reserves 

! Provide a roadmap for addressing the current rules, 

statutes and frameworks 
Let’s Drill Down a little Deeper! 
Definition of Refracs? There are none in statute or regs
As Close as We Get... 

Existing SWR 13 definition : 

 Hydraulic fracturing treatment -- A completion 

process involving treatment of a well by the 

application of hydraulic fracturing fluid under 

pressure for the express purpose of initiating or 

propagating fractures in a target geologic formation 

to enhance production of oil and/or natural gas. The 

term does not include acid treatment, perforation, or 

other non-fracture treatment completion activities. 
Definition of Refracturing is Important 

Why? It’s different from the original 

hydrofracture treatment 

1. Permitting: none needed 

2. Economics: 

! Well already drilled. Save 2/3 of cost. 

! Lease already acquired, 

! Infrastructure in place 

3. Footprint: smaller, for less time, because 

no rig running 
But they both have similarities also...

1. Water Use and Access 

2. Footprint: extends life of facility 

3. Social Contract required for community 

relations 

4. Regulatory Oversight and inspections or 

investigations in place
Incentives, Not Mandates – Examples 0n the Books

1. The Enhanced Oil Recovery (EOR) 

Incentive. 

2. The High-Cost Gas Incentive 

3. Severance Tax Relief for Marginal Wells

4. Incentive to Market Previously Flared or 

Vented Casinghead Gas 

5. Enhanced Efficiency Equipment 

Severance Tax Credit (HB2161) 

6. Incentive for Reuse/Recycling of 

Hydraulic Fracturing Water (HB 4) 

7. Advanced Clean Energy - EOR Tax
Refracturing and EOR – “to be or not to be” 

" The Enhanced Oil Recovery (EOR) Incentive. (1989) , oil 

produced from an approved new enhanced oil recovery 

project or expansion of an existing project is eligible for a 

special EOR tax rate of 2.3 percent of the production’s 

market value (one-half of the standard rate) for 10 years after 

Commission certification of production response. For the 

expansion of an existing project the reduced rate is applied to 

the incremental increase in production after response 

certification. 

" The High-Cost Gas Incentive (1989) Under the current 

incentive, gas from wells defined as high-cost gas wells under 

Section 107 of the old Federal Natural Gas Policy Act (NGPA) 

is eligible for a severance tax reduction. The level of 

reduction is based upon drilling and completion costs. To 

qualify for the reduction the well must be spudded or 

completed after September 1, 1996. 
Where can you Refrac? 

! Existing geologic “sweet spot” 

! Initial frac successful 

! Casing and Well Integrity uncompromised 

! Water available 

! Strong social contract maintenance 

! Service company costs low 

! Infrastructure in place 

! Technology proven succesful
What Lies Ahead?