SandRidge Energy, Inc. Q3 2008 Earnings Call Transcript

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2008-11-07 11:44:12.0

Tags: Well, J.P. Morgan Chase & Co., Call Transcript, Earnings, SandRidge Energy Inc., Dugout Creek, Warwick, Asset Management, Operational Planning, Business Operations, Seeking Alpha, Well, J.P. Morgan Chase & Co., Call Transcript, Earnings, SandRidge Energy Inc., Dugout Creek, Warwick, Asset Management, Operational Planning, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Joe Allman with JPMorgan.

Joe Allman - JPMorgan

Yes, thank you. Good morning, everybody.

Tom Ward

Good morning.

Dirk Van Doren

Hey, Joe.

Joe Allman - JPMorgan

Hey, Tom, maybe you said this, but how many wells at this point have you drilled in the Frog Creek thrust and where are those located?

Tom Ward

The Frog Creek thrust is mainly if you look north to south on that slide we presented. The Dugout Creek is the furthest north. The Warwick is the center. And that's on page three. And the Frog Creek sits south of that.

So, by definition, the Frog Creek wells are at the south end of the field. We're not going to get into specifics of how many wells were drilled, but you can see on our website where we are drilling wells and can maybe come to some conclusions.

We have several wells that have penetrated Frog Creek and several that wells that have tested the Frog Creek. We don't know today what type curve to put with the Frog Creek wells on whether they are a Dugout Creek type curve or a Warwick type curve. We feel comfortable that they will meet or exceed our PUD average type curve.

Joe Allman - JPMorgan

Okay. But in all the wells, you are seeing sweet gas?

Tom Ward

Yes.

Joe Allman - JPMorgan

Okay. And then, in your prepared remarks, you mentioned further asset allocation. Could you elaborate on that some?

Tom Ward

I won't elaborate very much other than to say that we do have assets that we have available to us that if we need to we can monetize. We'll talk to several different types of companies. For example, if someone wanted to look at our midstream system, where we still had control of that, because it's very important to us, we're thinking that we could monetize some value there.

Joe Allman - JPMorgan

Got you. And then lastly, the Big Canyon well is drilling. I know it's still drilling. But what are your thoughts so far as you are drilling that and what are you seeing?

Tom Ward

We're pretty encouraged that of the three exploration wells, this is the only one that's hit our targeted zone in the overthrusted chert. We have good shows, and we'll test them out in the year.

 

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