Yes there definitely are some key measures to reduce costs with the produced water. Sandridge state that it's so important to hold reasonably large land positions (on adjoining sections), so infrastructure can be set up as efficiently as possible. (holding acreage in sections all over the place won't be efficient in that regard).
It is indeed interesting how they can frac with the naturally produced water. The produced water definitely isn't necessarily a burden in that regard. Reported IRR's are as high, if not higher, than any other oil play in the US today, so clearly it's all worth it in the end.
SEA Price at posting:
74.5¢ Sentiment: LT Buy Disclosure: Held