Mississippi Lime Activity

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Earlier this week I posted an introductory blog on the Mississippi Lime play in northern Oklahoma and southern Kansas.  While that blog covering some basic geology, I wanted to follow up with some operator activity and production metrics.  Who are the main operators in the play and which are the best producing counties?  Using Drilling Info and DI-Desktop this was a pretty quick and simple task.  Here is a map showing operators drilling horizontal and directional wells into the Mississippi Limestone sequence over the past 3 years.

Mississippi Lime Activity

As you can see, SandRidge Exploration and Production, LLC a subsidiary of SandRidge Energy, Inc., has been actively permitting through this time frame.  Along with a large acreage position, the company has built up an attractive portfolio.  One that Repsol  YPF could not resist.  The two companies have entered into a joint venture agreement in which SandRidge will sell an approximate 25% non-operated working interest, or 250,000 net acres, in the Extension Mississippian play in Western Kansas and an approximate 16% non-operated working interest, or 113,636 net acres, in its original Mississippian play. The entire transaction value is totaled at $1 billion. Repsol will pay $250 million in cash at closing and the remainder will be in the form of a drilling carry over 3 years.  The transaction could possibly net Repsol with 90,000 Boepd by 2019.

Range Resources has put together 140,000 net acres with recent wells averaging 485 MBOE and 70% liquids.  Well costs are around $3.1 million with 2,197’ laterals and 12 stages.

Chaparral Energy, LLC will be spending $42 million, a third of their entire 2012 drilling budget in the play.  The company has 17 wells planned for 2012 with well costs at roughly $2.5 million.  IP rates range from 200 to 500 Boepd and 200-400 MBOE EURs with 70% liquids.

Below is a chart displaying some other active operators and their current net acreage holdings.

Mississippi Lime Activity

I’ve also included a couple of charts portraying the top 5 producing counties in Oklahoma and Kansas in the Mississippian trend area using DI-Desktop.

Mississippi Lime Activity

Mississippi Lime Activity

I expect to see more large acreage acquisitions and possibly JV announcements in the months to follow.  This is a unique play, and perhaps the first of its kind, that accentuates the benefits of unconventional drilling methods in a purely carbonate rock.  I’m looking forward to observing this emerging play unfold.  Feel free to check out other unconventional resource plays in Drilling Info’s DNA section.

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