TULSA, Okla.–(BUSINESS WIRE)–Midstates Petroleum Company, Inc. (NYSE:MPO) (“Midstates” or the “Company”) announced today that, as a result of its lenders’ semi-annual review, the borrowing base under its revolving credit facility has been reaffirmed at $252 million. There are currently no borrowings under the credit facility. The Company also provided an operational update for the third quarter of 2015.
During the third quarter of 2015, total Company production averaged 32,609 barrels of oil equivalent (Boe) per day of which approximately 39% was oil, 21% was natural gas liquids (“NGLs”) and the balance was natural gas. The temporary interruption of production at a Midstates’ well site due to a previously reported incident reduced third quarter production by approximately 650 Boe per day. Production from the impacted well site was restored in August. Production from the Company’s Mississippian Lime properties averaged 26,358 Boe per day. Midstates currently estimates operating capital expenditures will be in the range of $55 million to $60 million and anticipates adjusted EBITDA will be near the bottom end of the previously disclosed range of $80 million to $90 million.
The Company’s total operated rig count remains at three rigs, all of which are drilling in the Mississippian Lime. Midstates plans to continue to operate a three rig program in the Mississippian Lime in the near term. The Company said that its current AFE for wells drilled in the Mississippian Lime is approximately $3.1 million per well and the average drilling cycle time has been reduced from 19 days to 17 days.
Jake Brace, Midstates President and CEO, commented, “Our Miss Lime drilling program continued to yield strong results in the third quarter. As a result of drilling efficiencies and our capital cost management initiative, we have surpassed our initial 2015 Miss Lime well cost target and our standard well costs are now $3.1 million. With our type curve and new well costs, we are generating attractive rates of return in excess of 35%.”
Mr. Brace continued, “We believe we have the liquidity needed to navigate the existing environment and protect our flexibility and optionality until the macro outlook improves. The reaffirmation of our borrowing base allows us the flexibility to continue to develop our premier position in the Miss Lime, even in the current price and reduced drilling environment.”
Updated Company Presentation
Midstates has posted an updated investor presentation to the Company’s website, www.midstatespetroleum.com/.