HUGE NEWS! Miss Lime wells could turn a profit even at about $40 per barrel
Mississippian Lime production gives troubled Midstates Petroleum shot in the arm
For the year, the company reported net income of $116.9 million.
Posted: Wednesday, March 25, 2015 12:00 am
By ROD WALTON World Business Editor | 0 comments
It’s been a rough year for newly arrived Tulsa-based oil and gas producer Midstates Petroleum Co.
Last week, however, the company finally reported some rare good news. Midstates generated both a profit and record daily production from its Mississippian Lime wells in Oklahoma.
Those wells are less costly than many others in the industry, which is helpful considering that crude oil prices are falling again. Earlier this year, former interim CEO Peter Hill said those Miss Lime wells could turn a profit even at about $40 per barrel.
Hill is gone now, replaced in a wave of leadership changes announced earlier this month. Midstates also had to delay its original reporting of fourth-quarter and full-year 2014 results to better finalize those details.
All of those events happened while Midstates’ stock has nosedived from a high above $7 per share last year to less than $1 currently. So the report of $5 million in adjusted net income and 25,039 barrels of oil equivalent (BOE) per day in the Miss Lime formation gave Midstates leaders some much-needed positive talking points.
“We are very proud of our accomplishments in 2014, growing production, lowering costs and bringing spending more in line with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization),” Chief Financial Officer Nelson Haight said in a statement.
For the year, the company reported net income of $116.9 million, or $1.01 per share, swinging to a profit in the period. Revenue was reported as $794.2 million.
The returns bested Wall Street expectations, according to the Associated Press.
“Through geological understanding and engineering, we have built a premium position in the Mid-Continent that can serve as a foundation for future organic value growth,” Haight added. “We successfully grew our Miss Lime reserves by 105 percent and production by 66 percent year over year.”
The company’s finding and development costs in the Miss Lime were only $4.86 per BOE, he noted. The top-tier Miss Lime acreage is generation a 30-percent internal rate of return.
“In the current pricing environment, we must continue to drive costs lower, maximize cash flow and focus all of our drilling efforts on our top-tier Mississippian Lime acreage,” Haight said.
Midstates Petroleum moved its headquarters from Houston to Tulsa late last year, choosing to focus on its assets in the Miss Lime and Anadarko Basin of Oklahoma and Texas. Those assets came at a high price, however, as the company paid almost $1.3 billion to buy them from Tulsa-based Eagle Energy and Panther Energy a few years ago.
Only two weeks ago, Midstates replaced Hill as interim CEO with Frederic “Jake” Brace as part of a top-level reshuffling. Three board positions also changed hands in the moves.
MPO~ 2 Wells completed huge oil and gas found in March 2015
FOUND THIS.. IT MUST BE HUGE..
Source: Webmaster Friday, 20 March 2015 20:04
Midstates Petroleum Company, LLC of Tulsa completed the Wyatt 2613 6H-27 D, BHL Section 27-26N-13W, Woods County for 726 BOPD & 3,149 mcfgpd along with 2315 barrels of water in a 5,809' TVD horizontal Mississippi Lime test...see 1002A.pdf
Midstates Petroleum Company, LLC of Tulsa completed the Keltner 2512 5H-8 A, BHL Section 8-25N-12W, Alfalfa County for 447 BOPD & 1,889 mcfgpd along with 1900 barrels of water in a 5,929' TVD horizontal Mississippi Lime test...see 1002A.pdf
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