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.
Forward-Looking Statements
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.
Copyright Business Wire 2013