HOUSTON--(EON: Enhanced Online News)--Midstates Petroleum Company, Inc. (NYSE: MPO) (the “Company” or “Midstates”) today provided an update on drilling operations including initial test results from the second successful horizontal Wilcox well at South Bearhead Creek in Louisiana and additional information on its third quarter 2013 drilling program and current production rates.
Midstates will participate in the Barclays CEO Energy-Power Conference in New York on Thursday, September 12; an updated investor handout prepared in conjunction with the conference has been posted to Midstates’ web site.
The Company said its current daily production has reached approximately 30,000 net barrels of oil equivalent (Boe) per day compared with 19,634 Boe per day that it averaged in the second quarter of 2013. Production from its Mississippian Lime/Hunton operations is currently at approximately 15,000 Boe per day, up 44% compared with 10,426 Boe per day in the second quarter. Production from its newly-acquired Anadarko Basin properties is currently at approximately 9,500 Boe per day, up 19% compared with approximately 8,000 Boe per day when the Company assumed control of the properties June 1, 2013. Production from its Louisiana operations is currently at approximately 5,500 Boe per day. Total Company production has averaged 29,200 Boe per day for the last two weeks. Midstates also confirmed its third quarter production guidance range of 27,000 to 28,000 Boe per day as well as its capital expenditure guidance of $170 to $180 million.
Midstates has five rigs active in its Mississippian Lime horizontal program in Oklahoma. The Company spud 15 operated wells and placed a total of 11 operated wells into production since July 1, 2013. Drilling is completed on a total of 11 additional wells and they are scheduled to be placed on production in the next several weeks. Midstates now has a total of 98 producing wells in the play that have experienced an approximate average 30-day initial production rate of 583 Boe per day.
In the Anadarko Basin, Midstates now has five rigs actively drilling horizontal wells primarily targeting the Cleveland formation. Three rigs were active when the Company assumed operations on June 1, 2013; a fourth rig was added in July and the fifth rig was added in August. Midstates spud 13 wells since June 1 and placed 11 wells on production. There are six wells targeting the Cleveland formation that have been on production approximately 30 days with an average initial production rate of 373 Boe per day. This is above expectations that were provided at the time of the acquisition. Drilling is completed on four additional wells and they are scheduled to be placed on production in the next several weeks.
In Louisiana, the Company recently completed and is currently testing the second successful horizontal well at its South Bearhead Creek field, the Musser Davis 27 HC-1. The well reached a total measured depth of 19,208 feet, with a 4,733-foot lateral targeting the Lower Wilcox “D”. The well was placed on production earlier this week and, while still early, the well is producing at a restricted rate of 967 Boe per day (over 80% oil). The well was completed with 11 stages of fracture stimulation. A rig is currently drilling the Wood 10H-1 horizontal sidetrack at North Cowards Gully.
John Crum, Midstates’ Chairman, President and CEO commented, “We are obviously very pleased with the growth in production to 30,000 Boe per day that we have achieved from our ramped-up drilling efforts. We continue to benefit from increased drilling efficiencies which are helping us to get our wells drilled more quickly. Even with the wells that we have placed online recently that contributed to this production growth, we still have 15 more wells that have been drilled and will be placed online in the next few weeks, primarily because of pad drilling.”
Crum continued, “The integration of the new Anadarko Basin assets and operations team has gone very well. We remain completely focused on execution across our three core areas and are very pleased with our results as highlighted by the growth in volumes. Our second horizontal success at South Bearhead Creek is very encouraging for the further development of that field. This well targeted a deeper Wilcox sand but was drilled more quickly and at a lower cost than the first well. We look forward to sharing further updates on our Company-wide drilling program during our next conference call in November.”
Third Quarter Earnings Conference Call
Midstates also announced today that its third quarter 2013 earnings release will be issued on Tuesday, November 12 after the close of trading on the NYSE. The Company will host a conference call to discuss third quarter results the following morning, Wednesday, November 13 at 10:00 a.m. Eastern time (9:00 a.m. Central time).
Participants may join the conference call by dialing (877) 645-4610 (for U.S. and Canada) or (707) 595-2723 (International). The conference call access code is 59342085 for all participants. To listen via live web cast, please visit the Investor Relations section of the Company's website, www.midstatespetroleum.com.
An audio replay of the conference call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until 59342085 and can be accessed by dialing (855) 859-2056 (for U.S. and Canada) or (404) 537-3406 (International). The conference call audio replay access code is 59342085 for all participants. The audio replay will also be available in the investor relations section of the Company’s website approximately two hours after the conclusion of the call and remain available for approximately 90 calendar days.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements that are not statements of historical fact, including statements regarding the Company's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management, and the benefits of acquisitions are forward-looking statements. Without limiting the generality of the foregoing, these statements are based on certain assumptions made by the Company based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Although the Company believes that its plans, intentions and expectations reflected in or suggested by the forward-looking statements made in this press release are reasonable, the Company gives no assurance that these plans, intentions or expectations will be achieved when anticipated or at all. Moreover, such statements are subject to a number of factors, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These factors include, but are not limited to costs and difficulties related to the integration of the acquired businesses and operations with Midstates’ business and operations; unexpected costs, charges or expenses resulting from acquisitions; litigation relating to acquisitions; variations in the market demand for, and prices of, oil and natural gas; uncertainties about the Company's estimated quantities of oil and natural gas reserves; the adequacy of the Company's capital resources and liquidity including, but not limited to, access to additional borrowing capacity under its revolving credit facility; general economic and business conditions; weather-related downtime; failure to realize expected value creation from property acquisitions; uncertainties about the Company's ability to replace reserves and economically develop its current reserves; risks related to the concentration of the Company's operations; drilling results; and potential financial losses or earnings reductions from the Company's commodity derivative positions.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Midstates Petroleum Company, Inc.
Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques to oil-prone resources in previously discovered yet underdeveloped hydrocarbon trends. The Company’s operations are currently focused on oilfields in the Mississippian Lime trend in northwestern Oklahoma, in the Anadarko Basin in Texas and Oklahoma, and in the Upper Gulf Coast Tertiary trend in central Louisiana. The Company is headquartered in Houston, Texas. Additional information about the Company is available at www.midstatespetroleum.com.