Case Study: Maximizing Efficiency and Production for a Small Independent

Company Profile
In 2004, several former Permian Resources team members formed Midland-based Stanolind Operating Corporation. An independent oil and gas operator, Stanolind operates 546 properties in the Permian Basin.

Business Challenge
All operators continuously look for ways to maximize production while minimizing overhead. The pressure is perhaps even greater for small companies. When Stanolind opened its doors in 2004, the start-up made purchasing decisions with a focus on being able to measure its return on investment.

One decision was simple: FieldDIRECT from IHS. Stanolind partners and staff had used the service previously at Permian Resources and knew the value it offered for increasing production and efficiency.

“I told them, ‘I have to have FieldDIRECT,’” said Barbara Watson, Regulatory Compliance and Production. The 30-year industry veteran relied on FieldDIRECT at Permian to streamline production reporting.

When Stanolind acquired two other companies soon after opening, the company needed to ramp up those pumpers on FieldDIRECT. Until then, one set of pumpers had recorded everything manually in 8-day gauge books. The other group did not log gauge books. They simply called in their numbers to a supervisor each day.

"With FieldDIRECT, we can evaluate a well’s production, whether it is a new completion, rework or downhole failure, with minimal effort and time. This allows us to employ our equipment and personnel resources efficiently, both of which are costly and, of course, always in short supply."

— Mike Stewart, Vice President, Operations

Pumpers are "Wonders" with FieldDIRECT
Currently, Stanolind has eight company pumpers and about 10 contract pumpers. All pumpers use FieldDIRECT to record production, pressures, volume, and other data right at the well. When they finish for the day, they return to the field office or their homes to upload that data to the main office database. It takes just minutes and those daily numbers are immediately available for foremen or engineers.

Watson was amazed at how quickly pumpers picked up the application, even those that had never used a computer. “Before, some of these guys had no clue how to do a beginning and ending inventory in a month,” she said. “I can’t tell you what wonders they are now. They just took it and ran. They teach me things. It’s been a total switch for them, but they’ve done really well. They love FieldDIRECT.”

Beyond production and other data, pumpers also enter any relevant notes in the system, giving managers extra insight into what might be happening with a well —whether equipment failure, a pipeline issue or some other problem.

"I am a true believer in this service. I've worked in production for years and years, and it's just top notch. I've used nearly all the other databases and FieldDIRECT is it. That's all there is to it."

— Barbara Watson, Regulatory Compliance and Production

Streamlining Company and State Reporting
With the ease of accessing the information she needs, each day Watson prepares the company’s Daily Operations Report using data and the “Notes” availability on FieldDIRECT. “It’s about one-third faster to create reports with
FieldDIRECT,” Watson said. “That translates to about two days each month. Before, I had to check to make sure the information was right, but FieldDIRECT checks me.”

Watson also finds tremendous value in the service as she prepares monthly regulatory reports to transmit to Texas and New Mexico. Reports are incredibly detailed, and Watson relies on FieldDIRECT for much of the allocation reporting information.

“The preparation of state-required regulatory agency monthly production reports is more accurate with FieldDIRECT’s Operations Reports and not as labor intensive as other production databases,” added Mike Stewart, VP, Operations.

Earlier Problem Identification Increases Production
Using FieldDIRECT, partners and engineers look closely at daily well data for any day-to-day variances. When anyone wants to examine a specific well more closely, the user can click on the well and see a complete history. Users can
select their preferred format for viewing production, though most engineers prefer the graphs to see any dips or spikes more easily.

“You can do a more in-depth analysis in FieldDIRECT than n a gauge sheet because you can see a more detailed report,” Watson said.

In addition to saving time, FieldDIRECT provides the insight needed to troubleshoot production issues — before a decline significantly impacts the well’s output. With daily access to production data, trends are easily identified. For example, if a well is down three times in a six-month period, Stanolind staff can investigate further into the source of the problems before production declines again.

Stanolind has production data on a daily basis with FieldDIRECT, compared to the manual gauge record —and data is displayed in practical applications. Stanolind personnel recognize well problems on a timely basis, sooner than it would have without such a tool. Ultimately, that timely access to data contributes to an increase in production.

“With FieldDIRECT, we can evaluate a well’s production, whether it is a new completion, rework or downhole failure, with minimal effort and time,” Stewart said. “This allows us to employ our equipment and personnel resources efficiently, both of which are costly and, of course, always in short supply.”

The 'Most Efficient and Cost Effective' Production Database
Both Watson and Stewart have used other production databases and prefer FieldDIRECT for its ease of use, affordability and results.

“I have found FieldDIRECT to be the most efficient and cost-effective for gathering, tabulating and reporting field-level production data and associated individual well performance issues for all departments of Stanolind, be it management, engineering, regulatory, land or accounting,” Stewart said.

“I am a true believer in this service,” Watson said. “I’ve worked in production for years and years, and it’s just top notch. I’ve used nearly all the other databases and FieldDIRECT is it. That’s all there is to it.”

Watson also finds the IHS support representatives responsive whenever she needs assistance. “They are incredible,” Watson said. “There has never been an instance that I didn’t request assistance and didn’t have it almost immediately. And they’re nice people too, not just knowledgeable. That means a lot to us.”

Having used FieldDIRECT now at two companies, Stanolind team members have seen significant efficiency and production increases and the company looks forward to a continued strong relationship with IHS.

Contact us now for more information on how FieldDIRECT can help you.

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