Sandrocks Oil Field Has Been Updated; Zeits On Sandridge

Sandrocks Oil Field in the Bakken has been updated; this is quite a nice field.

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Over at SeekingAlpha, Richard Zeits has an update on SandRidge:

• Based on a fresh batch of operating data, SandRidge has continued to post strong initial well results in the Mississippian play in Oklahoma during April and May
• The percentage of under-performing wells has declined
• I estimate the company’s Mid-Continent oil production to increase by at least 20% sequentially during Q2, assuming ~100 new well connections
• SandRidge has also turned to sales three Chester wells in Woods County. Initial test rates were underwhelming
• An Oswego test drilled in Alfalfa County disappointed 

The latest batch of initial production test data for SandRidge Energy's wells in Oklahoma shows continued strength in the average IP rates. Following a weak start in Q1, the company posted a turnaround in March. April and May results continued to impress. The 29 wells that were brought on production in April and May and for which data is now available, on average tested with ~500 barrels of oil and 1.6 MMcf of natural gas per day, which is a major improvement relative to the average performance during January and February of this year. Importantly, the percentage of poorly performing wells appears to have declined, even though well results remain highly "statistical" overall.

On the other hand, these wells disappointed, but look at the small amount of proppant used:

In May, SandRidge brought online three Chester test wells in Woods County:

• The Hoffman R 2820 #2-31H had a short lateral (~2,300 feet) and tested with a somewhat disappointing IP rate of 88 barrels of oil and 0.1 million cubic feet of gas per day. The well had a perforated completion and was fracture stimulated with 450,000 pounds of proppant.

• The Bliss Family 2820 #1-21H also had a short lateral (~1,500 feet) and tested with a similar IP rate of 75 barrels of oil and 0.25 MMcf of natural gas per day. The well was stimulated with 375,000 pounds of proppant.

• < The Ragan 2820 #1-22H had a "normal" lateral length (~4,300 feet) and tested with a modest IP rate of 182 barrels of oil and 0.2 MMcf of natural gas per day. The well was treated with 750,000 pounds of proppant.

According to Zeits, on a lateral length-adjusted basis the three wells had consistent initial production test rates.