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Global Innovation


wells at costs in the $2.5 to $3 million range.


These wells are averaging


rates of investor returns exceeding 75%, making the Mississippian Lime one of the most robust economic plays for high growth, reasonably sustainable oil investments for emerging upstarts and small players. SandRidge, one of the largest players has drilled 382 horizontal wells accounting for approximately 45% of the total horizontal wells drilled in the Mississippian. SandRidge expects to generate estimated ultimate recoveries (EUR) of 456,000 barrels of oil equivalent (MBOE) per well.


One small player I like is AusTex Oil (ASX:AOK). AusTex is active in the Mississippian play in Oklahoma


and Kansas with 17,000 of AusTex’s 22,500 net acres squarely in the Mississippian. One well, piercing the Mississippian, tested at 100 barrels of oil per day, and the other, targeting the Arbuckle, tested at 16 barrels of oil per day, lifting AusTex’s market cap in recent trading sessions as the stock has risen on much higher than average volumes. I walked acres of the Kay County, Oklahoma Mississippian Lime fields with AusTex’s Chairman Rich Adrey, last week.


Rich is


an impressive and experienced investment banker, venture capitalist turned oilman seriously bent on uncorking the Mississippian Lime’s treasure.


AusTex’s holdings are


adjacent to leases operated by Range Resources Corporation (NYSE:RRC).


Though a smaller producer, AusTex’s operating results within the Mississippian are more impressive than Chesapeake (CHK) (APA), Range Resources’


and SandRidge (SD), the companies with the most surrounding acreage


21 entrepreneurcountry


Apache (RRC)


AusTex recently


announced two


impressive conventional vertical well results - one vertical well at 160 barrels of oil equivalent per day (boepd) and the other at 90 boepd via natural pressure without siphoning - it could produce more once a pump is activated. For a lower drilling cost of approximately $650,000, these production rates are extremely impressive and


the wells could potentially earn triple digit returns.


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