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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (161660)	12/23/2011 2:48:23 PM
From: Dale Baker	2 Recommendations Read Replies (1) \| Respond to of 206199

The Players PetroQuest Energy ( NYSE: PQ) is a new player here and recently added to its acreage through the purchase of a position from a private oil and gas company. After this deal closes, the company will have 40,000 net acres under lease in Oklahoma and Kansas that is prospective for the Mississippi Lime play. PetroQuest Energy will start drilling on the leasehold in the fourth quarter of 2011 and is looking for a partner to assist in development. Range Resources (NYSE: RRC) is at an early stage of development of the Mississippi Lime in Oklahoma and has drilled four wells in 2011 on its acreage. The company has 45,000 net acres exposed to this play with 900 drilling locations. A closer look at the economics of the Mississippi Lime demonstrates why this area has attracted many industry players. Range Resources believes that the average Mississippian well will have an estimated ultimate recovery (EUR) between 400,000 and 500,000 barrels of oil equivalent (BOE), with 70% composed of oil and other liquids. The company will spend $3.1 million to drill and complete a typical well, yielding a rate of return from 75 to 86%, assuming oil prices of $90 per barrel. (To help you invest in oil, check out A Guide To Investing In Oil Markets.) SandRidge Energy (NYSE: SD) is one of the largest operators involved with the Mississippian play, with 900,000 net acres under lease. SandRidge Energy drilled 61 horizontal wells during the first six months of 2011, and has budgeted for a total of 172 wells for the year. SandRidge Energy has grown production rapidly along with that development and reported production of 8,400 BOE per day during the second quarter of 2011. The company has plans to accelerate activity next year and will increase its operated rig count from the current level of 14 rigs to an average of 24 rigs in 2012. Chesapeake Energy (NYSE: CHK) has a ubiquitous presence in nearly every onshore basin in the United States and has been at work developing the Mississippian play. The company recently reported a completed well here with an initial production rate of 770 BOE per day. Devon Energy (NYSE: DVN) includes the company's Mississippian acreage in its New Ventures group, and is acquiring seismic information and conducting initial drilling in the play in 2011. Read more: stocks.investopedia.com

To: Paul Senior who wrote (161660)	12/23/2011 3:01:11 PM
From: MIRU	Read Replies (1) \| Respond to of 206199

Check posting 161549 by Glenn Peterson

To: Paul Senior who wrote (161660)	12/23/2011 5:43:07 PM
From: Ed Ajootian	1 Recommendation Read Replies (2) \| Respond to of 206199

Paul, Osage Exploration (OEDV.OB) -- this company is nearly a "pure play" in the Mississippian. They have partnered with one of the premier horizontal drillers around, Slawson Exploration (a private company) and have about 5,000 net acres in the play. They're about 2-4 weeks from getting to TD on their first well there and I believe they've gotten a 2nd rig going now also, which is drilling a water disposal well at this point. All of the other US-traded public companies in the play have significant "baggage", i.e. other production and projects, some of which are gas-centric, which will serve to dilute whatever contribution they might get from their Miss. acreage. Osage has some legacy production and a small interest in a pipeline in Colombia but at this point their assets there are mature and are just throwing off a little cash flow right now. 100% of their cap ex is going to go into drilling out their Miss. acreage.