Mississippian Oil Play

Range Resources Updates Operations In Mississippian Oil Play

Range Resources (RRC) disclosed additional information on the company’s development of the Mississippian oil play in Oklahoma and Kansas.

Range Resources now has 125,000 net acres exposed to this play, up from the previous level of 105,000 net acres.  The company is operating two rigs here and is securing pipeline, disposal and cryogenic processing capacity to handle anticipated production.

Range Resources estimates that once the company ramps up development in the Mississippian oil play, wells will cost $3.1 million to drill and complete. The company plans to use laterals of 2,200 feet and 12 hydraulic fracturing stages.

Range Resources reported that the first eight wells have an average estimated ultimate recovery of 485,000 barrels of oil equivalent (BOE) per well. This consists of 120,000 barrels of condensate, 204,000 barrels of natural gas liquids and one Bcf of natural gas.  

Devon Energy Reports Production On Matthews 1H Well

Devon Energy (DVN) reported production results on the Matthews 1H well, the company’s first horizontal well drilled into the Mississippian oil play.

The Matthews 1H well produced at a rate of 960 barrels of oil equivalent (BOE) during a 24 hour period, and averaged 590 BOE per day during the first thirty days.

Devon Energy said that 80% of the production was crude oil, with an API gravity of “around 40” and low sulfur content.  The company plans to drill 15 wells into the Mississippian oil play in 2012.

SandRidge Energy - Mississippian Oil Play - Type Curve

SandRidge Energy (SD) recently reported information on the type curve the company is utilizing for the development of the Mississippian Oil Play in Oklahoma and Kansas.  The company has two million acres under lease or through royalty trusts and joint ventures.

SandRidge Energy expects the average well to have an estimated ultimate recovery (EUR) of 456,000 barrels of oil equivalent (BOE), with 45% of the production composed of crude oil.

SandRidge Energy estimates that these Mississippian Oil Play wells will have an initial production rate during the first thirty days of 275 BOE per day, and have a 61% first year decline rate

SandRidge Energy - Mississippian Oil Play - Well Costs

SandRidge Energy (SD) recently reported on the cost to drill and complete wells in the Mississippian Oil Play in Oklahoma and Kansas. 

SandRidge Energy estimates that the average cost to drill and complete a well here will be $3.2 million.  This figure includes the infrastructure needed to process and transport production.  The company also estimates that its lease operating expense will be $9.69 per BOE.

SandRidge Energy attributed the lower cost of developing the Mississippian oil play relative to other onshore areas to the shallower depth of the formation and the existing presence of infrastructure due to legacy oil and gas drilling in the area.  The company also said that less hydraulic fracturing horsepower per well is needed to develop wells here.