Midstates Petroleum Provides Operational Update and First Quarter 2013 Production Guidance
Fourth Quarter 2012 Production Averaged 15,592 BOE Per Day
HOUSTON--(BUSINESS WIRE)-- Midstates Petroleum Company, Inc. (NYS: MPO) (the "Company" or "Midstates") today provided an update on drilling operations and additional information on fourth quarter 2012 and first quarter 2013 production.
The Company said its fourth quarter 2012 production averaged 15,592 net barrels of oil equivalent per day (Boe/d) compared with guidance of 15,100 to 15,600 Boe/d. Production from Oklahoma operations totaled 7,207 Boe/d while production from Louisiana operations totaled 8,385 Boe/d. Midstates also stated that its production for the month of December averaged 16,643 net Boe/d, of which 8,174 Boe/d were from operations in Oklahoma while 8,469 Boe/d were from operations in Louisiana.
John Crum, Midstates' CEO and President commented, "We are extremely pleased with our production volume growth in the fourth quarter. The integration of the Mississippian Lime operations and the Eagle team into Midstates has gone very smoothly, and the results announced today are a clear indication of how well that effort has proceeded."
During the fourth quarter, Midstates had four rigs active in its Mississippian Lime horizontal program in Oklahoma, spud 13 operated wells and placed a total of 14 operated wells into production. Three of the rigs were focused on drilling in the core of Midstates' acreage while the fourth was used to test and/or retain acreage outside of the core area. At December 31, 2012, four wells were drilling and nine were awaiting completion or connection to pipelines. Overall, the wells continue to show results that are consistent with Midstates' expectations.
In Louisiana, during the fourth quarter of 2012, the Company drilled or sidetracked 14 vertical wells as planned at Pine Prairie, including eight wells in its shallow program and six wells in its Wilcox program.
In the DeQuincy area, horizontal wells brought on production during 2012 continue to show encouraging results. At North Cowards Gully, the McFatter 8H-1 was drilled to a total measured depth of 16,870 feet including a 3,350-foot lateral and is currently undergoing stimulation. The McFatter 8H-1 is a follow up well to the very successful Upper Wilcox "B" Musser Davis 8H-1 well that was completed in September 2012 and had an initial 14-day average gross production rate of 1,649 Boe/d. The well has produced a total of approximately 122,000 Boe (73% oil) from inception of production through January 15, 2013. The Company believes it could have over 20 more potential horizontal well locations at North Cowards Gully for future drilling.
At South Bearhead Creek, the Musser-Davis 33H-1 well that targeted the shallow Miocene horizon was completed in April 2012 and produced at a peak rate of over 700 Boe/d. It has produced a total of approximately 122,300 Boe (95% oil) from inception of production through January 15, 2013. A horizontal well targeting the shallow Cockfield horizon encountered mechanical problems while completing and was abandoned during the fourth quarter. The previously-announced 3-D seismic survey over the field was completed in late 2012. The survey is in processing and is expected to help define additional shallow targets as well as the primary Wilcox formation objectives. Midstates plans to spud a horizontal well to test the Lower Wilcox "C" later in the first quarter of 2013.
At West Gordon, the Company continues to evaluate possible solutions to its vertical well performance and to test the potential application of horizontal technology in the field. The Forestar 7H-1ST, targeting the Upper Wilcox "E" was completed but produced at non-commercial rates. The well may be recompleted in productive zones in the Upper Wilcox as a vertical well. Further field investigation is underway. Midstates has recently moved a rig to re-enter and sidetrack the AKS 5H-1 well at West Gordon targeting the Upper Wilcox "C", which had encouraging shows when it was drilled in the third quarter of 2012.
During the fourth quarter, the Company received the full data set from its 200 square mile Fleetwood 3-D seismic survey in central Louisiana. Midstates is very encouraged by its early interpretation of the results and has confirmed the first prospect it plans to drill on its acreage which is expected to spud in mid 2013. The Company believes a number of additional prospects will be developed from the data set.
Crum continued, "Looking ahead to the first quarter of 2013, we are estimating our first quarter volumes will average 16,300 to 17,300 net Boe per day, with about 55% to 60% of production from Oklahoma. We plan to maintain four operated rigs in Oklahoma and spud 13-15 horizontal wells during the quarter. We also expect to participate in 2-3 non-operated wells in Oklahoma. In Louisiana, we will have three rigs active and plan to spud 5-6 vertical wells at Pine Prairie and 2-3 horizontal wells and 1 vertical well in DeQuincy. We expect to invest about $100 to $120 million during the first quarter. At this time we are reaffirming our 2013 annual production guidance of 20,000 to 23,000 net Boe per day as well as our capital budget guidance of $400 to $450 million and will refine those estimates in the future based on additional drilling results."
This press release may contain forward-looking statements within the meaning of federal securities laws. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of words such as "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project," "guidance," and similar expressions. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. Factors that can affect future results are discussed in the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 and other reports filed by the Company from time to time with the Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.
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 Upper Gulf Coast Tertiary trend onshore in central Louisiana and in the Mississippian Lime trend in northwestern Oklahoma and southern Kansas. The Company is headquartered in Houston, Texas. Additional information about the Company is available at www.midstatespetroleum.com.
KEYWORDS: United States North America Texas
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