Hopefully SD may be able get more leases around the most productive focus areas for good prices. They plan on letting some less productive leases expire. If SD is one of the few players in the area, this should put SD in a great position to increase production over the next couple of years or until they are bought out. imho good luck
If you look at the results of the exploratory wells production in the 2 new focus areas, Chester and Sumner,
they are significantly above the existing type curve. SD management has said that they will be moving rigs to the higher production areas from the lower production areas. So, that means that production rates will increase significantly because the new focus areas are significantly more productive. imho Good luck longs
As I recall the exploratory wells drilled in Sumner were not close to one another. The reason they did that was to get a good prospective on the production potential of Sumner overall. Its highly unlikely that SD just "happened" to pick several wells far apart that were all productive and missed the unproductive areas. imhoi
Perhaps you missed some parts...like drilling multiple levels from the same well...or drilling 4 areas from the same well...just for starters...
Keep the news about SD accomplishments in the financial news for a longer period of time. Just like the "tease" on a TV show before the commercial. Also, they want the big hedge funds and other investors to pay close attention to the technical...which are more complicated. imho Good luck
With the new focus areas of Sumner and Chester and associated projected production increases, it would not surprise me to see an increase in any sale price. SD has progressed significantly in proving the worth of the Miss assets and as they explore more...they will find significantly new areas of production. imho Good luck
What about "open hole" drilling? Not sure what the technical are but SD is experimenting with this technique and it apparently significantly reduces costs....And anything that reduces costs provides more money for more rigs. imho Good luck
My guess is that SD will announce significant news about production related to use of new technologies or drilling techniques that will have a significant effect on increasing production. My opinion is that SD would not repeatedly emphasize the importance of this meeting on their quarterly report last week if they did not have significant good news. IMHO Good luck longs,
I think there will be significant good news at this weeks conference. My reasoning is that SD management highlighted the importance of the conference on Thursday's call. It would make no sense for them to do this unless they had significant positive news. imho Good luck
addendum: I found this information about REPSOL having 16% interest in certain SD acreage. Apparently, Repsol made a projection of increase in production in their 16% interest and SD management on the conference call projected the increase in production for its larger share of production. I did not understand the details but listed below is the article about the REPSOL agreement.
The agreement involves more than 363 million acres in SandRidge's Mississippian oil fields. It calls for Repsol to pay SandRidge $250 million upon closing, which is expected early next year, and fund $750 million worth of drilling in the fields. In exchange, Repsol will receive a 16% interest in more than 113,000 acres that straddle the Oklahoma-Kansas line and a 25% stake in 250,000 west
One of the questions on the conference call was about REPSOL's projected 2016 production. Does REPSOL have an interest in SD acreage? Management responded to the question by projecting REPSOL's analysis of its improved production rates to 2016 to projecting increases in SD production. I did not hear all of the comments but think increases in production over the next 2 years will be huge ...based upon SD management comments. If you know and understand the details...please explain. Good Luck Longs
If you look at a 3 month chard and associated indicators...the chart looks very encouraging. The recent identification of new focus areas in Sumner and Chester will result in significant increases in production. These new areas were identified in a relative short period of time and there are large areas under lease
One thing about markets these days...when a stock starts to be picked up by hedge funds and mutual funds..the stock price can move up significantly and quickly. So far the new management has done an excellent job by increasing production, and reducing costs One of their main objectives is to increase the share price to one that correlates to the value of SD resources. So my view is this year the stock will move upward significantly. The 100 pound gorilla is the possibility of a buyer. This probability will increase significantly as production keeps increasing. All Imho Good luck
addendum. The new 5 exploratory wells that were drilled in Sumner produced average IP of 601 BOE per day or 90% above year end type curve. New development area consists of 117000 net acres and SD plans to drill 45 wells in 2014 in this area. Great results. With 117 k net acres to work with in Sumner and the new focus area of Chester....It doesn't take a rocket scientist to conclude that production is going to increase...and quite a bit. Good luck
From the conference call my view is that production is going to significantly increase over the next couple of quarters. The initial wells drilled in Chester in Sumner had outstanding results. SD management stated that they will divert the rigs to the most productive areas from lesser producing areas. At the same time...they will try and develop new focus areas. Since they already have identified new focus areas in a very short period of time with much higher production .... End result will be much higher production. IMHO good luck
Agree with your assessment... If it talks like a duck ....and acts like a duck....
If its only about oil...take a look at Sumner figures.
But its not Only about production but also about cost of production
Thanks for the SWD information. I am in agreement with another poster on this thread who suggested that the SWD will be very important to any future buyer of SD. My view is that they should maintain control of the SWD and sell extra capacity. They also might negotiate with other companies who have interest in extra capacity before they drill new SWD wells. That way they can size the SWD well to SD requirements as well as future contract requirements. They can put the extra income to work by deploying extra rigs to drill for oil. Good luck
For the stacked pay wells, do they need to drill multiple wells to access the various geological levels, or do they drill 1 well and access multiple areas as they drill deeper?