In recent years, the Bakken Shale has gotten most of the attention from investors, but the easy money has already been made. That’s why I believe the Mississippi Lime will be the next big millionaire maker, for investors who jump on board now.
One of the great things about the Mississippi Lime is that it costs far less – and is much easier – to fracture limestone than shale.
Tapping into just one Bakken shale deposit can cost a company $6 million to $7 million, which puts a big strain on the resources of a small player.
However, the Mississippi Lime can be tapped for roughly $2.5 million, according to the American Association of Petroleum Geologists. And that’s to put in a well that can produce, on average, 400,000 barrels of oil a year.
Drilling the Mississippi Lime is cheaper for three reasons. First of all, the limestone is much closer to the surface than shale: 4,000 to 6,000 feet, as opposed to 8,000 to 12,000.
Second, limestone is more porous than shale, which means it can be cracked under lower pressure. This allows companies to use much smaller, and cheaper, drilling rigs.
SEA Price at posting:
86.5¢ Sentiment: LT Buy Disclosure: Held
