There are several key points identified by SandRidge that are important. The first is a change in how wells are modeled. SandRidge did cut oil EURs as it is finding oil is depleting faster than natural gas.
These are the difficulties with new plays, as models are estimates and can change. Currently, SandRidge is the only operator addressing this. It is possible others will follow suit, but at this time, I am unaware of any other downward EUR revisions. The second variable is SandRidge's assertion that the Mississippi Lime is consistent throughout Oklahoma and Kansas with respect to EURs. Results contradict this as Oklahoma IP rates have been better than in Kansas. T
he best area is around the Nemaha Ridge. This would suggest EURs differ, but further development is needed to prove this. The third is better well design significantly improving IP rates. Some operators are further along in development, and this has improved production. Chesapeake and Devon also have considerable acreage in the Mississippi Lime. Both companies are experiencing varying degrees of success, but are improving techniques and well design to be more consistent.So, bottom line: folks are lowering EURs for the Mississippi Lime. Ever since the the Bakken boom took off, the EURs in the Bakken have been increasing, and some increases have been significant.