Paper: Value Creation By An Integrated Client-Supplier Team

The Austin chalk formation in Van field, Van Zandt County, Texas, USA, was identified as a candidate for infill drilling and recompletion. For the program to be economically successful, total well costs would have to be significantly reduced without compromising production performance. To achieve total systems cost reduction, a team of management, engineering and field personnel from both the operator and supplier was formed. The team's charter was to create a workover program that reduced the total operating cost by 25% without a detrimental effect on production. To identify and prioritize potential opportunities, the team employed a Structured Process Improvement exercise. Smaller task groups were formed, based on individual member expertise, to evaluate the feasibility and impact of each new technique. After a review of individual group recommendations, a revised workover process was implemented by the operator. Total systems cost reduction of 37% and replacement of 500,000 BOE reserves were realized in the first 90 of 150 planned wells.