American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 113

Permian Basin Reports
this integrated approach is a tremendous
accelerator. We want to know how the
wells talk to each other now, as well as
six months and a year from now, and
how that affects declines."
Balmer adds that Encana has put its
water delivery team and its produced
water team under one "sharp young manager," which has provided a "lot more
synergy and a huge uptick in recycled
water."
The company was able to use 15 percent recycled water on the RAB Davidson
pad and 20-25 percent on more recent
pads. It has the ability to recycle 15,00020,000 barrels of water a day, Balmer relates.
Encana has approximately 140,000
net acres in the Midland Basin core, primarily in Howard, Glasscock, Upton,
Martin and Midland counties. The company added a third rig at the end of July.
Balmer says Encana plans to drill 75-85
horizontal wells and 10 vertical wells
this year.
"I love the Permian Basin," he enthuses.
"It has enormous potential and it keeps
changing. For example, 18 months ago
the Lower Spraberry in Martin County
wasn't being considered strongly. Now,
it is one of the best type curves in the
play. Who knows what is next?"

with our automated system to disposal
wells through pipes, too," Yang adds.
"That can save us as much as $10,000 a
day. The University Lands Foundation
and our other leaseholders love it because
we are taking trucks off the road and
aren't using any freshwater."
Craft contends those savings will stay
with Approach when commodity prices

rebound and drilling picks up. He claims
the company has the lowest drilling and
completion costs in the basin, noting it
can drill horizontal wells in five-six days
from spud to total depth that have drilling
and completion costs of $3.6 million$3.7 million.
Yang says the company has 20 miles
of water lines and can pump 90 barrels a

Water Management
Approach Resources, which has
126,000 net acres in the southern Midland
Basin, mostly in Crockett County, was
the first company to put together a "massive water recycling plan," according to
Chairman, Chief Executive Officer and
President Ross Craft.
"We invested $100 million in infrastructure," Craft announces. "We can recycle 100 percent of our produced water.
We have more than 300,000 barrels of
capacity aboveground, where we strip
out dissolved solids and iron."
Texas' University Lands Foundation
nominated Approach for the Bruno Hanson
Environmental Excellence Award presented in November 2015 for its water
recycling system.
Qingming Yang, chief operating officer
for Approach, says in less than six months,
the company recycled 2.2 million barrels
of water, realizing an estimated $7 million
in savings.
"Our recycle center collects all the
produced water, and we can send water
OCTOBER PBIOS 2016 113


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Table of Contents for the Digital Edition of American Oil and Gas Reporter - PBIOS 2016 Official Program Guide

Table Of Contents
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - Cover1
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American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - Table Of Contents
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