mississippi lime update, page-10

Transcript from Sandridge Energy's latest Analyst conference which provides a lot of detailed results on the Mississippi Lime including Kansas below. Its a very long transcript but well worth the read.

http://seekingalpha.com/article/1249251-sandridge-energy-s-ceo-hosts-2013-investor-analyst-meeting-conference-transcript?part=single

Some interesting points:
- Results vary from county to county in Kansas and while IP rates are lower than Oklahoma, the decline rate is also lower;
-Even with lower IP rates, wells can still be economic. The following example was given. Note that Finney County is the furthest up Northwest that Sandridge have drilled and Finney is 2 Counties South of AOK's landholdings:
"With that said, the next slide is the example in Finney County. This is the far north west and if I don't mess up our presentation, I will kind of click through and show you how we progress generally across the entire play, and we are going to show you this examples as we walk away across the entire play with examples of good performing wells across the entire region.

This is a low IP well, 60 barrels a day, now if you keep in mind our type curve is 272 barrels a day initial IP, that includes gas, guess what, as we moved into Northwest Finney County, its not producing any gas, started out as a 60 barrels a day IP, the projection on it right now is 240,000 barrels of recovery and it generates approximately 40% rate of return. Now that goes completely in the face of the 30-day IP chart. It would be in the lower most tier of the 30-day IP chart and yet it is a robust economic outcome."

- Sandridge is finding that different completion methodologies are required in Kansas. Still very early stages but they appear to be optimistic based on what they have seen to date.

-In relation to Oklahoma, Sandridge have so far been focusing their horizontal drilling on the Upper Miss, but they stated:
"...what is interesting about the Miss plays is there are three distinct members, so there's the upper, the middle and the lower miss and then underneath that is the Woodford Shale that you've heard a lot about."
So there is potential for four stacked pay sections. Not sure if this is the case for AOK though as the Mississippi Lime formation is only around 300ft vs Sandridge's 600ft where they tested. AOK has also never mentioned the Woodford Shale as a target in previous presentations