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Midstates Mississippi Lime Production Hampered; Three (3) Rig Program Maintained
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Mississippian Lime Update
Production from the Company’s Mississippian Lime properties averaged 26,358 Boe per day for the third quarter of 2015. During the quarter, the Company experienced a temporary production interruption due to a previously reported incident that reduced third quarter production by approximately 650 Boe per day. After adjusting for the estimated impact of the temporary production interruption, the Company’s third quarter production would have been essentially flat versus the 27,029 Boe per day for the second quarter of 2015. Through October 26, 2015, the Company had 275 wells on production for more than 30 days with an average peak 30-day production rate of 557 Boe per day.
The Company had three rigs drilling in its Mississippian Lime horizontal well program in Woods and Alfalfa Counties, Oklahoma for a majority of the third quarter. Midstates spud a total of 19 wells, of which eight were producing, eight were awaiting completion and three were drilling at September 30, 2015. The Company brought 19 fracture stimulated horizontal wells online during the third quarter.
The Company’s total operated rig count remains at three rigs, all of which are drilling in the Mississippian Lime, and Midstates plans to continue to operate a three rig program in the Mississippian Lime in the near term. Additionally, the Company has surpassed its year end 2015 Mississippian Lime well cost target of $3.3 million and its current standard AFE well cost is $3.1 million. With current standard AFE well cost of $3.1 million, Midstates is generating rates of return in excess of 35% at current strip pricing.
Anadarko Basin Update
The Company does not plan to operate any rigs in the Anadarko Basin area in the near term. Due to the current commodity price environment, Midstates’ focus in the basin in 2015 has been on its high-return capital and expense workover program designed to offset some natural production decline and to reduce lease operating costs. The Company intends to continue a limited workover program through the end of the year.
Midstates did not spud or bring on line any new wells during the third quarter and had no wells awaiting completion on September 30, 2015. Production for the third quarter in the area averaged 6,251 Boe per day.