Oklahoma Mississippian horizontal play grows

By OGJ editors
HOUSTON, Nov. 8
-- SandRidge Energy Inc., Oklahoma City, is expanding activity in a horizontal play for oil in the Mississippian formation on the Anadarko basin shelf in northwestern Oklahoma as part of the company’s transition to liquids production from gas.

The company has completed 20 wells and said completion results have exceeded expectations and that it may monetize part of its acreage in 2011.

The core of the play involves drilling horizontal wells in existing vertically drilled and producing reservoirs in Woods, Alfalfa, and Grant counties, Okla., along the Kansas line. SandRidge, which has leases in both states, hopes to enlarge its acreage holding to 500,000 acres by yearend 2010 from the current 400,000 acres that contain 1,200-2,500 potential drilling locations.

The company sees operated activity at 10 rigs in the 2011 first quarter compared with eight at yearend and five at present. It will drill more than 100 Mississippian wells in the coming year and drilled its first well in January 2010. Rigs, services, and infrastructure are readily available.

Most leases have 3-year primary terms with 2-year options. With 10 rigs, the company believes it can hold 250,000 acres, the spread it originally viewed as optimum for SandRidge.

Assuming Oct. 28 strip pricing, the expected rate of return is 100% based on a type curve of 386,000 boe on expected ultimate recovery of 300,000-500,000 boe/well, 53% crude oil. Estimated cost to drill and complete a well, including salt water disposal facilities, is $2.7 million.

The expansive carbonate stratigraphic trap is 250-500 ft thick at 6,000 ft true vertical depth with porosity developments of up to 100 ft. Thousands of vertical wells penetrate the reservoir.

The company’s shift to oil will continue in 2011, as the company runs only a single rig at Pinon gas field in the Texas Val Verde basin. With Permian basin acquisitions and success in the Midcontinent Mississippian oil play, SandRidge hiked its 2010 capital budget to $1.1 billion from $875 million and set its 2011 spending at $1.1 billion. It expects to drill more than 900 oil wells next year.

Related Articles

Sharp drop expected in global E&P spending in 2015, study says

01/19/2015 Global capital expenditures for oil and gas exploration and production projects are expected to drop 17% to $571 billion in 2015, according to Cowe...

Sharp drop expected in global E&P spending in 2015, study says

01/08/2015 Global capital expenditures for oil and gas exploration and production projects are expected to drop 17% to $571 billion in 2015, according to Cowe...

People

10/17/2014 David Lawler has accepted the role of chief executive officer of BP PLC.'s Lower 48 Onshore business and resigned his role as executive vicepreside...

Fieldwood to acquire gulf assets from SandRidge for $750 million

01/07/2014

Fieldwood Energy LLC has purchased certain offshore Gulf of Mexico and onshore Gulf Coast assets from SandRidge Energy Inc. for $750 million.

Forest Oil to sell Permian basin assets

12/03/2009 Forest Oil Corp. of Denver agreed to sell its remaining Permian basin properties for $800 million to SandRidge Exploration & Production LLC.

SandRidge to acquire Crusader Energy Group

09/23/2009 SandRidge Energy Inc. said it will buy bankrupt Crusader Energy Group Inc. for $230 million, no more than $85 million of which will be cash. Both a...

More West Texas Overthrust exploration set

12/11/2008 Cantex Energy, in partnership with Big Canyon Energy, signed an exploration and development agreement with Slawson Exploration covering the Big Can...

SandRidge developing West Texas Overthrust

11/07/2008 SandRidge Energy expects to be operating 20 rigs in the West Texas Overthrust by the end of 2008, down from 27 rigs in early November and a third q...

Oxy invests in new large CO2 source for Permian basin EOR

07/03/2008 Occidental Petroleum with its agreement with SandRidge Energy plans to increase substantially the amount of CO2 available in the Permian basin for ...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected