OEDV
Posted: Wed Oct 30, 2013 4:52 pm
IMO this paragraph from the Range Resources (RRC) Q3 press release is very bullish for Osage Exploration & Development (OEDV), which is in our Small-Cap Growth Portfolio. OEDV is in a JV with Slawson in a large acreage block that sits just east of the Nemaha Ridge in Logan County, OK. - Dan
"During the third quarter, the Midcontinent division continued to focus on Range’s horizontal Mississippian acreage along the Nemaha Ridge. Initially, activity has been concentrated across the southern portion of the Company’s acreage position. In October, Range completed a 12 mile northern step-out well that had an initial 7-day production of over 300 barrels of oil per day and an average 30-day rate of 330 boe per day with 94% liquids (85% oil and 9% NGLs). The division tested completions with larger frac stimulations on four wells that averaged production rates 45% above the 600 Mboe type curve for the first 65 days. Results from wells completed with the larger fracs continue to significantly exceed results seen from wells drilled in the early part of 2013 that were completed with smaller fracs. A total of 7 (6.8 net) wells were turned to sales during the quarter with average lateral lengths of 3,742 feet with 21 frac stages. The initial production on these wells averaged 622 (493 net) boe per day with 75% liquids and is the highest average for any quarter to date. Despite the larger fracs, Range has been able to drill and complete the wells at the same cost of $3.2 million. Range anticipates bringing online four additional horizontal Mississippian wells with larger frac stimulations during the fourth quarter."
"During the third quarter, the Midcontinent division continued to focus on Range’s horizontal Mississippian acreage along the Nemaha Ridge. Initially, activity has been concentrated across the southern portion of the Company’s acreage position. In October, Range completed a 12 mile northern step-out well that had an initial 7-day production of over 300 barrels of oil per day and an average 30-day rate of 330 boe per day with 94% liquids (85% oil and 9% NGLs). The division tested completions with larger frac stimulations on four wells that averaged production rates 45% above the 600 Mboe type curve for the first 65 days. Results from wells completed with the larger fracs continue to significantly exceed results seen from wells drilled in the early part of 2013 that were completed with smaller fracs. A total of 7 (6.8 net) wells were turned to sales during the quarter with average lateral lengths of 3,742 feet with 21 frac stages. The initial production on these wells averaged 622 (493 net) boe per day with 75% liquids and is the highest average for any quarter to date. Despite the larger fracs, Range has been able to drill and complete the wells at the same cost of $3.2 million. Range anticipates bringing online four additional horizontal Mississippian wells with larger frac stimulations during the fourth quarter."