Range Resources LLC, one of our closest neighbours also targeting the Mississippian have also just released their latest quarterly. More importantly, they are still optimistic about the Mississippian and are continuing to report encouraging results from the play. Relevant extracts from their quarterly presentation are as follows:
"We continue to make progress in the Horizontal Mississippian Chat play. If you look at the horizontal wells with our original completion designs and also our current completion designs, we're projecting EURs with greater than 485,000 Boe. We plan to continue to drill and delineate our Mississippian Chat acreage through the end of the year. The wells turned to sales in this quarter have the highest average IP rates than any other quarter."
"For the Mid-continent Division, we remain focused on our continued effort to delineate and test our Mississippian Chat acreage on the Nemaha Ridge, along with developing our St. Louis production in the Texas Panhandle. For the chat, we're continuing with our current completion designs in conjunction with improved geologic targeting. We announced our record oil well, which yielded our highest oil rate to-date in the chat at the last call. To follow-up on that well, over the first 90 days of production, the well has averaged over 400 barrels of oil per day. Additionally, this past quarter, we achieved the highest average IP rate for chat wells turned to sales in any one quarter to-date. While it's still early, the results are encouraging and our expectations for EURs in the chat remains greater than 485 Mboe."
"The advantage of the mid-continent is there's liquids to it. And there's really 4 plays, I think, or 5 plays that are pretty interesting. One is the Mississippian Chat, one is the St. Louis, and then you have, we have some great potential in horizontal Granite Wash in Cleveland oil on our existing HBP acreage, and a shot at some Woodford. So even in the chat where we are today, when you look at those original wells that we -- the horizontal wells that we did, we’ve got reserves for 485,000 Boe, they still look like they're on track for that. And the new ones, they look like they're on track for that or better. So really all of them look like they're 485,000 or better. Some of them are 600,000, some of them are 700,000 barrels, the individual wells. So in the rates of return, even using 45, we're still 72%. Those are strong returns and low risk, repeatable things. So really, it comes back to portfolio and it allows us that we think to triple from where we are today and maybe beyond with -- maybe even like Doug suggested, accelerated growth in 2016 and beyond."
IMO, what's most important about the Mississippian is location, location, location. And based on Austex's production results to date, it is looking very likely that we are in the sweet spot.
AOK Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
