Immediate frac cost reductions onsite in the Marcellus

A major US frac service provider engaged MGB to assist in reducing fracturing costs and enhancing operational efficiency.  The Marcellus site provided an opportunity to compare previous wellsite performance before and after using MGB’s PowerCELL system.  The frac service company’s results after MGB’s unit were immediate and significant.

MGB provided its patented PowerCELL system to lower frac costs by reducing fuel usage, frac pump idling, third-party rentals, and frac maintenance costs.  No longer in need of tractors to start frac pumps, tractors could have been eliminated as well.  Finally, MGB’s PowerCELL technology was deployed to the frac service provider on a rental basis, requiring zero CAPEX.

Solution

PowerCELL units were in operation for a total of 33 days. Both units performed flawlessly for the entire 800 hours of use. After the frac service provider rapidly adopted MGB’s technology, an immediate positive impact on wellsite operations was realized.

PowerCELL advanced power systems eliminate extraneous costs associated with maintaining a fleet of tractors while significantly reducing frac pump idle time.

The PowerCell® units were rigged into the service provider’s typical frac layout consisting of 17 primary frac pumps, three pump-down units, two data vans, and multiple lighting systems.

Technology Adoption Leads to Additional Savings

Like most new technology adoption, a learning curve is expected with MGB’s PowerCELL system. The Marcellus frac service provider was able to achieve a 46% adoption rate in this field application.  This resulted in direct P&L savings of $350,000.

By eliminating tractors and more fully exploiting PowerCELL technology to power data vans, blenders, and lighting systems could enhance adoption to 80% and lead to monthly savings of $820,000 or more.

  • Immediate impact to P&L of $350K with only 46% technology adoption rate

  • Potential additional savings in range of $500K – $800K per month

  • Zero equipment modifications required and seamless integration

  • Zero capital outlay

  • Zero operational risk

  • Zero NPT/HSE incidents

The PowerCell system deployment and subsequent financial benefits were recognized immediately and achieved without additional capital outlay, operational risk or NPT/HSE risks associated with the PowerCell system.