E&P Decoding - Pioneer Natural Resources Edition

I hollo back I know what this agency only every bit per commons the mesh is amount of people who know far to a greater extent than than me. You dearest readers are my xx one thousand individual adept network. 

This is from the Pioneer Natural Resources conference call. I would actually love people to explicate it - preferably word-by-word inward the comments. In special I desire to sympathise the drivers of the pressure level changes (which matters for proppants for instance) together with how the four-string casing deals amongst the problem.

Thanks inward advance:

We've mentioned this inward all the slides together with such, only nosotros did autumn behind operationally on our completions inward the Spraberry/Wolfcamp, inward large purpose due to unforeseen drilling delays. What happened is the delays were actually the effect of unexpected changes inward pressure level regimes inward the field.  

So what we've seen is increasing pressures inward or thence of the shallow formations that agency nosotros conduct maintain to mud upward substantially to bargain amongst that occupation together with and thence nosotros directly together with thence are drilling into lower pressure level depleted zones. And nosotros were at the knife's border of this actually through all 2016. But these pressures conduct maintain changed inward a subtle mode such that nosotros at nowadays detect nosotros had a higher pct of what nosotros refer to every bit train-wreck wells, where nosotros conduct maintain all kinds of problems amongst lost circulation together with other issues because of this pressure level change. 

The easiest way to remediate this is amongst a drilling programme takes us from a three-string casing pattern to a four-string casing design. So that's precisely what we've done. We solved this issue. We conduct maintain addressed it together with we've done thence yesteryear changing the casing design, which has proven to last really successful. 

One thing it does is it does increment the good toll substantially, nearly $300,000 to $400,000 per well, together with it does increment our fourth dimension of drilling 5 days or so. But we're likewise nickel-and-diming away other costs inward these wells to endeavor to larn that coin back, including changing out surfactants together with other things to endeavor to trim down costs together with trim down days. So we're non going to stand upward pat amongst this increase. We're going to flake away at it together with trim down it. 

Cumulatively, though, what happens is because we've impacted the schedule, we've likewise together with thence reduced the number of POPs we're going to last completing this twelvemonth yesteryear nearly 30. Those essentially volition larn into 2018. That's 100% due to these drilling delays I mentioned, which I believe nosotros at nowadays conduct maintain mitigated. But yous conduct maintain to likewise component inward the delays non solely effect inward the deferral of wells yous position on production, only likewise loses production days for all the wells that larn delayed that are going to last POP'd inward the future, specially after inward the side yesteryear side year. But the request is we're at nowadays dealing amongst that. I hollo back nosotros conduct maintain that squared away. I conduct maintain a after slide we'll speak nearly to a greater extent than special on that.