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Mississippian Check Up--Who's Portfolio Reigns Supreme?
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The horizontal Mississippian oil play has been quite the find for SandRidge and Chesapeake as these are the two largest lease holders in the play. Located in Oklahoma and Kansas the Mississippi Lime covers 17 million acres.
Mainly a vertical play, it was two years ago that we first heard about horizontal possibilities. Most knew the geology, but one variable was a barrier to development. This barrier wasn’t the type of resource or depth of the source rock, it was water. The Mississippian source rock produces large amounts of water. Every barrel produced is one that needs to be disposed. Water costs are easily the biggest costs of the play.
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