New Drill Planning and Development

Challenge: Our client, a North American Independent Oil & Gas Company, had forecast significant short term growth through acquisition. This created a number of challenges for their front end processes including process cycle time and permit quality to optimize rig utilization.

OUR ANALYSIS FOUND

On average, the permitting process was taking 227 days and yielding an average of 42 permits per month

Almost 25% of locations were killed at some stage in the process

There were no triggers/stage gates built into the process to define commitment/completion dates for staff

There were no metrics in place to help the staff track their performance and to understand performance variance to budget

Communications between departments was ineffective and relied mainly on email and internal postal service even within the same building.

There was a lack of team working across the process and a culture of finger pointing was evident

Implementation

A front end location selection process established enabling a structured selection of locations to eliminate bottlenecks and quality issues
• Cycle times established for major stage gates in the process enabling more rigorous management of the process cycle time improvements and elimination of delays
• A Process Management Tool developed to enable visibility of locations at any stage in the process
• Tools and responsibilities in place to manage level loading, bottlenecks, and inventory shelves
• Process maps redesigned to reflect updated processes, RACI Charts, SIPOC’s and Standard Operating Procedures in place for reference and training

Process Optimization

Cross functional working teams meeting on a frequent basis to manage process KPI’s and proactively eliminate issues

Organizational Effectiveness & MOS

• Implementation of an Operations schedule, linking construction, completion activity triggers to drilling SPUD dates
• 60-day locked schedule and 24 month Drilling Schedule implemented providing clear vision for rig, materials and personnel management

Operations Excellence

CLIENT SUCCESS

Results of our engagement include:

42% improvement in permits approved over base; Process cycle time reduction of 23% (52 days) over base.

“I must say that I now sleep much better knowing that we have title before we are releasing wells”

VP Operations

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