Talk at the coffee shop this morning was a new SD well in Alfalfa or Grant county, between 4500 and 5000 bbl of oil, not boe, per day. Trying to find out more.
Hi Elvis, made a couple phone calls to folks I know in the patch.... With a doubt you are far better connected than I..... I have respect for your input..... I was told that it is felt that the well you spoke of, is on SandRidge Mississippian Trust I land..... This is not to be taken to the bank, as there was nothing concrete to base input on......... I would hope it was on SandRidge land..... However some of the best SandRidge land is in the Mississippian Trust I , in Alfalfa County. This wasn't done by design, just the way it worked out..... This what I have been told.....
Happy Payback Himself
It's great to see you paying some respect to Elvis. I know him and there are a few of us that correspond off of the Message Board.
However your ascertation that the well was drilled in SDT is suspect. SDT has already been drilled out. Perhaps it is the acreage in SDR where the well was drilled?
Hopefully its in the Woodford. Lots of rumors flying, but Miss Trust I (SDT) is already drilled out. If we have good Woodford exposure, it will be a game changer. Grady County acreage in the Woodford is selling for $8,000 per acre. SD Is not in Grady County, but the Woodford is hot with lots of liquids and better decline curves than the Miss.
At any rate, if a Gusher like this hit in any of the acreage, its excellent news.
nice! if that initial rate is real, that will be SD's biggest well in the play to date. Probably the biggest in the Miss Lime. Either way, what we need is for the Middle Mississippian to come in at a some sexy rates like that and to start seeing some statistical superiority to the Upper...get analysts a new story for SD. Like Rainbow said if the Woodford is prospective then we are really in business. I've been studying PXD and they really are going all in on the Permian. They have been one of the highest performing stocks in the S&P and its all due to their future potential. They have excellent management and are convincing analysts and wall street that they have a field larger than Gwahar which is the largest Saudi field. That is what SD needs... a property that has 100 years of drilling inventory not just 15-20. Prove up 3 or more zones and then SD is competitive with some of the Permian players.
The CHK Thurman Horn 406H well in the Hogshooter formation produced 5,400 barrels of crude a day during its first eight days of operation. CLR and DVN are hitting some excellent wells in the Woodford. If SD hit a Grandslam in the Woodford, it could be worth an additional 5k per acre across the Woodford acreage of 400,000 to 600,000 acres. Another 2 to 3 Billion or another 4 to 6 bucks per share.
SD said it was testing the Woodford, and the timing of this rumor is about right for when the well would have been completed. Obviously a bunch more good Woodford wells will need to be drilled to establish whether the Geology is uniform across the play.
Also, we are due for an update on the GOM well(s) that are being drilled as opposed to recompletions. Higher risk on new wells, but if they hit, GOM wells are usually quite good.
Something has to be going on behind the scenes, a press release sure would be nice.
i could sure use another $4 a share, let alone $6. i feel like we're on the cusp of some very good news in the next few weeks. a few of these big gushers will render the capex question a moot point. the next earnings call is going to be a great one - that is unless sd gets bought first.
it would sure be nice to know what whoever bought all those $5 calls knows. i will agree with you ... there's something going on behind the scenes.
Elvis - you keep going to that coffee shop and I'm sure some of us on this board will be happy to pay for that every day along with a pastry or two for your time.... :) ....good stuff.....I followed up on a post about the Kansas wells the other day and although that site is difficult at best to navigate and find what you want - I did find some very nice wells in Kansas.....When you click on the hyperlink they give you to the specific oil and gas information the numbers on some of them were exceptional (i.e. over 300 bbl of just oil a day)....some of the data showed me 10-12 months of performance and in some cases (emphasizing some - the degradation really was a lot lower than the type curve)....I think as they hunt/peck and find their sweet spots that Kansas could have some positive contributions.....Clearly this well you reference would really cover a lot of ground....All IMHO - good luck longs - we might finally see 6 and higher again.....
Just from oil(not counting Gas),2400Barrels/day.Say 80 % reduction in 12 months,It will produce 3000 Barres/day on the average for 365 days
That means, 3000x365x$100/barrel=110 million dollars revenue from this well alone from oil only.
Did I make any mistake?
Will they be able to count all that money?