Oklahoma Operator News: SandRidge to focus on lower-cost production in NW STACK

 

On June 16, 2017, James Bennett, the CEO of SandRidge, said that SandRidge will use their proceeds from legacy production in the Mississippi Lime to focus on the NW STACK. Read Full Interview

 

As leasehold prices have increased in the Core STACK, companies have been looking to the NW where they believe the formations show similar characteristics, and where they can acquire larger chunks of acreage for a fraction of the price.

Tapstone, which had personnel ties to SandRidge (Tom Ward), is also operating in the NW STACK. Read our overview of Tapstone

Legacy Production

We limited our research to wells who had a first production date between 01/01/2012 and present day. Based on this criteria, SandRidge appears to currently operate 1100+ wells. The majority of these wells are located in Alfalfa County, an area that Chesapeake and SandRidge targeted heavily, 5+ years ago.

 
SandRidge Investor Presentation

SandRidge Investor Presentation

Existing production from the Mississippi Lime region is expected to generate about $160 million in cash flow this year, according to Mr. Bennett. SandRidge will use these funds to invest in the counties of Major, Woodward, and Garfield, where they plan to target the Meramec and Osage Formations.

 

According to SandRidge's Investor Presentation, Meramec IP, in their target region, has averaged 700-800 BOEPD.

 

As of June 2, 2017, SandRidge claims to own approximately 70,000 net acres in the NW STACK.

SandRidge Investor Presentation

SandRidge Investor Presentation

 

2017 Leases

For 2017 (based on the data available and subject to the counties reporting), SandRidge has acquired approximately 340 leases (via OGLs and Assignments).

 
 

2017 Oklahoma Corporation Commission Apps/Orders

Based on their current OCC filings, it appears that SandRidge is going to first focus their efforts in the townships of 20N and 21N in Woodward and Major County.

  • Horizontal: 19
  • Increased Density: 7
  • Location Exceptions: 28
  • Poolings: 11
 

2017 Permits

 

Mr. Bennett said SandRidge executives will be closely monitoring the oil prices and will reevaluate their drilling plans if they see a prolonged downtown and cannot generate a 20% Rate of Return. This morning, 06/22/2017, oil prices were around $42.73.

Convey Energy Consultants

Convey Energy