SandRidge accelerates Midcontinent Mississippian plays

By OGJ editors

Atinum Partners Co. Ltd., Seoul, will acquire a 13.2% nonoperated working interest in 860,000 acres held by SandRidge Energy Inc., Oklahoma City, in the Mississippian horizontal oil play in northern Oklahoma and southern Kansas for $500 million.

Atinum will pay $250 million cash at closing and the rest as a drilling carry obligation to pay 13.2% of SandRidge’s share of drilling and completion costs up to $250 million, expected to occur over 3 years.

SandRidge said it is the Midcontinent Mississippian play’s most active operator with 16 rigs operating and 111 horizontal wells drilled. The company expects to average 24 rigs in the play in 2012.

SandRidge also identified and established an acreage position in a new area that is similar in size, characteristics, and cost to the now-proven Mississippian play. It didn’t identify the area geographically.

The company hiked its 2011 capital budget to $1.8 billion, up $500 million, and expects to spend a similar sum in 2012 as it seeks to establish a self-funding capital program by 2014. The new budget reflects acreage acquisitions and drilling in the Midcontinent and Permian basins, where SandRidge operated a combined 32 rigs in early August.

SandRidge has drilled 111 of industry’s 250 horizontal wells in the Mississippian oil play, a shallow carbonate hydrocarbon system that spans 150 miles. SandRidge grew its production to 8,400 b/d of oil equivalent from 770 boe/d in the 2010 second quarter.

The company plans to have drilled 172 horizontal wells in 2011 and has identified more than 4,000 drilling locations on the nearly 900,000 net acres it has under lease.

SandRidge has established a 200,000 net acre position in another Mississippian play that is a shallow hydrocarbon system in a thick, porous, carbonate section. The Mississippian is 250-700 ft thick “with enhanced porosity development just beneath the pre-Pennsylvanian unconformity. The geological setting is an extensive regional stratigraphic trap within a hydrocarbon system that has a long history of Mississippian production from thousands of vertical wells.”

The joint venture with Atinum covers all of SandRidge’s original Mississippian play area other than wells and acreage in the associated spacing units spudded prior to the effective date and wells and acreage associated with SandRidge Mississippian Trust I. The deal is expected to close in the fourth quarter.

Related Articles

Shell cuts $15 billion in spending for 2015-17

01/30/2015 Royal Dutch Shell PLC has curtailed more than $15 billion in potential spending over the next 3 years, but is not “not overreacting to current low ...

Chevron’s $35 billion capital budget down 13% from last year

01/30/2015 Chevron Corp. will allocate $35 billion in its capital and exploratory investment program for 2015, including $4 billion of planned expenditures by...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

PwC: Low oil prices might drive surge in restructuring in 2015

01/29/2015 Mergers and acquisitions (M&A) in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to a report f...

Harvest drops Venezuelan arbitration move

01/29/2015 Affiliates of Harvest Natural Resources Inc. have withdrawn a request for international arbitration alleging the government of Venezuela hampered e...

Shell, Iraq ink deal for petrochemicals complex

01/29/2015 Royal Dutch Shell PLC has entered a preliminary agreement with Iraq to construct an $11-billion grassroots petrochemicals complex in the country’s ...

ASMP report lists routes to shale-stimulated manufacturing rebound

01/29/2015 The US shale oil and gas renaissance has created a manufacturing rebound that could produce even more jobs and stimulate further economy growth wit...

ConocoPhillips revises down $2 billion from budget

01/29/2015 ConocoPhillips has shed an additional $2 billion from its capital expenditures for 2015, decreasing total spending to $11.5 billion from the previo...

OMV trims annual investments for 2015-17

01/29/2015 Austria’s OMV AG says it is reducing its annual investments for 2015-17 to a range of €2.5-3 billion. Before the drop in oil prices, the company ha...
White Papers

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

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When 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

When 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



On Demand

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


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