Data from seismic and core analysis are helping operators unlock success in the Mississippi Lime, but more sweet spots can be identified, according to Steve Antry, chief executive officer of Eagle Energy Co. of Oklahoma LLC. The private, Tulsa-based firm is drilling its 50th well in the oil-rich play.

He detailed aspects of the burgeoning play for nearly 2,500 attendees at the 7th annual DUG Conference held in Fort Worth recently. Potential could be huge, as the Mississippi Lime covers some 17 million acres in Oklahoma and Kansas, compared to 10- to 15 million acres in the Bakken and 6 million in the Eagle Ford, he said.

"We have about 500 horizontal data points now, when there were only 10 when we started. And in Kansas, we have about 150 data points now. But we are always doing more mapping."

Eagle started drilling in the play in 2010 with two rigs and will move to four soon, with six running by year-end, Antry said. From the company's 85,000 net acres, he estimates ultimate recovery of about 513,000 barrels of oil equivalent (BOE).

"We haven't drilled any dogs in here yet. This is consistent and repeatable. I am not embarrassed to say how lucky we are. A lot of good data points are popping up," Antry said, citing a recent well drilled by Osage Energy, east of the Nemaha Ridge, which cuts the play in half. The well flowed 1,100 BOE per day. East of the ridge, operators must pay closer attention to structure, he added.

"We see no depletion in areas with vertical production, which is amazing. Who knew there were so many reserves?"

The firm was one of the earliest entrants into the Mississippi Lime. Today, Antry thinks the PV-10 of Eagle's P3 reserves there are worth close to $1.75 billion. Eagle has some 600 locations left to drill, if there are three wells per section. Currently, Chesapeake Energy Corp., Chaparral Resources Inc. and SandRidge Energy Inc. are seeking permits for four wells per section. "I think by year-end, four wells per section will be the norm," Antry told DUG attendees.

It's a classic story of rejuvenating an old formation everyone knew was there, by using the latest horizontal-frac methods. The play is found in north-central Oklahoma and south-central Kansas.

Antry cited well costs of $3.5 million to reach a formation that boasts porosity of 10% to 15%, and that yields production that is 66% liquids. Extensive infrastructure in the play from traditional Hunton Lime wells makes moving oil to market fairly easy.

Separately, Evolution Petroleum Corp. (EPM) just unveiled a joint venture with an unnamed, private company to drill to the Mississippi Lime in 38 sections in Kay County, Oklahoma. This is in the shallow, oily region of the play, where the formation is roughly 3,000 to 3,500 feet deep. EPM thinks estimated ultimate recoveries here could be about 250,000 BOE (80% oil and 20% liquids-rich gas).

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