holders, just saw the 44c line wiped out, will be more and more of that in the future.
guys, what can i say, when brokers start doing valuations of this RFE will be recommended a huge buy, at this price you are buying a potential 10 bagger or more imho.
will try and find a few more articles but this is what billion $ US oil and gas companies think of the Mississippian shale
A Large New Play for Sandridge
Our timely move to oil is now expanding with the Horizontal Mississippian play in the Mid-Continent. This oil plays fits us perfectly, as it's in an area we know well, it's large, shallow, inexpensive to drill and has a tremendous amount of vertical well control. We've been quietly and patiently building our acreage position, and we have now amassed over 400,000 acres with the goal of leasing at least 500,000 acres by the end of the year.
We are moving from drilling our first well in January to having five rigs in the play today and plan to further expand the 10 rigs in early 2011 as we drill over 100 wells in the coming year. To give you an understanding of the success to date that we've had in the play, we've posted all of the wells we've drilled along with our drilling cost. The 30-day peak rate, the 30-day rate and the last 30-day rate. Based on results to-date from our wells and others, we're achieving 100% rates of return and we've increased the pro-well estimated ultimate recovery range to between 300 Mboe to 500 Mboe.
Considering reservoir certainty, drilling economics, infrastructure and available services, we believe this play competes with the very best oil plays in the United States.
Tom Ward CEO (Former Founder Chesapeake)
Well, we don't have any results. The data rooms are still open. So I don't know, we could have preempted if we would have cared to, but I think we'll have a better outcome by going through the whole process. We're selling oil assets in an oil market instead of trying to sell gas assets in a depressed market. So I tend to be pretty optimistic -- what the offering does for us is give us tremendous flexibility. If you really -- I believe that the Mississippian play is a unique play today, one of a handful of plays I've ever been in that I think can change a company. And the reason I believe that is because you can control your cost. With the high-pressure frac-ing really being the main culprit, we're seeing in other areas that costs are tripling or more in what it takes to complete a well. And I just like being able to control our own services and then have the vertical well control to really know how hard to field can be is, is that has over 30 years of production history and it's the carbonate. So those things make me very, very bullish on the Mississippian so what the preferred does is it gives us more time to look and drill Mississippian wells and determine how we want to sell our excess acreage. We made it very public that we have more acreage than our company is going to be able to take care of. And I think that in the next year, you'll be able to see us not only monetize the assets that we're talking about in the Bone Spring and the Wolfberry, but now we'll have time to get the maximum amount that we think we can out of the Mississippian. And only time will tell us if how successful we are with that, but I believe that it might -- I won't say it's the best play in the United States, but it's got a rank very close if it has a scale that I think it does.
GO RFE
RFE Price at posting:
44.0¢ Sentiment: LT Buy Disclosure: Held
