By utilizing horizontal drilling and other progressive drilling methods, energy producers now have the ability to extract energy resources from abandoned fields that were once believed to be dry.
Within a short amount of time, advancements in drilling technology has helped the United States reach a 20 year oil production high, reduce our net oil imports to a 20 year low, and are setting the stage for making the U.S. a net exporter of natural gas.
However, the economic and geological data of the Mississippian Lime play have caught the attention of independent producers like TAP Management because of the lucrative investment opportunities the play provides.
The depth of the Mississippi Lime’s production area is approximately 5,000 feet – substantially less than the average 10,000 foot zone in the Bakken.
Furthermore, the typical Mississippi Lime well costs roughly $3.3 million to drill. Meanwhile, estimated well expenses in the Bakken typically require about $8 million in capital.
Leasing acreage in the Mississippian is also less costly, sometimes negotiated at around $3,000 an acre. Other leases in the highly publicized Bakken or Marcellus shales can reach up to $20,000 an acre.
However, the Mississippi Lime play is by no means a secret to oil and natural gas industry personnel.
Dating back to the 1950’s, over 14,000 vertical wells have been drilled in this region, with many previously producing at commercial levels.
Because of the priceless data that can be observed from these abandoned wells, unlocking the oil-rich reserves in the Mississippian through horizontal drilling and hydraulic fracking methods can be more easily optimized.
Although many energy companies are attempting to capitalize on the reduced drilling and operational costs, the largest players in the Mississippian are two Oklahoma City-based companies – Chesapeake Energy and SandRidge Energy.
The development opportunities that the Mississippian Lime play offers have attracted a tremendous amount of attention from oil and natural gas producers.
Energy experts and companies that focus on the redevelopment of mature fields believe the Mississippi Lime play is one of the nation’s hottest oil plays, and are looking forward to decades of production.
TAP Management Inc. | 515 Congress Avenue, Suite 2525 | Austin, TX | (512) 527-6000