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Midstates Works to Optimize MissLime Ops, Cuts Workforce

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   |    Tuesday,June 05,2018

Midstates Petroleum reported its Q1 2018 results.

Highlights:

• With Mississippian Lime production of 15,518 BOEPD and Anadarko Basin production of 3,717 BOEPD

• Grew Mississippian Lime production to approximately 18,000 BOEPD in May 2018 through highly economic well workover program

- Implemented a workforce reduction in Q1 - no specifics discussed

- Sold off its Anadarko Basin assets to Presidio Petroleum for $58 million

Mississippian Lime - Completion Optimization

Key Highlights:

• Produced an average of 15,518 BOEPD in the first quarter of 2018, of which 29% was oil, 24% NGLs, and 47% natural gas
• Grew Mississippian Lime production to approximately 18,000 BOEPD in May 2018 through highly economic well workover program
• Currently running 10 workover rigs in the field executing the Company's base production optimization program with an average payback period of less than 3 months per workover
• Spud 4 wells and placed 6 wells online during the first quarter of 2018

During the first quarter of 2018, the Company continued exploring options to maximize individual well performance and tested the application of high-intensity completions within the basin.

• This resulted in increased average well cost for its trial wells to $5.0 million per well.
• The Company's completion design optimization program is expected to continue throughout the second quarter of 2018, with the testing of more focused, lower cost completions.

The Company plans to continue its one-rig drilling program in the Mississippian Lime through the second quarter of 2018 with the goal of minimizing drilling and completion costs to enhance economics. Additionally, Midstates is currently drilling its first of two planned extended lateral wells in the basin and expects to have initial production results in by the middle of the third quarter.