While a couple of major players in the Mississippi Lime players have left, there still seems to be plenty of optimism from companies that are already in the Kansas-Oklahoma play. One of the Mississippi Lime’s distinguishing traits is its shallow nature, leading to lower well costs. Production per well in this play may sometimes average less than other plays, but countering these lower production numbers are the advantages of lower well costs and increased access to infrastructure.

The play appears to have lost some support from some operators. In a recent corporate presentation from Encana, a slide showed that activity on the Kansas side of the play did not meet expectations. In fact, overall activity in the Kansas Mississippian has slowed down. Rig count increased in 2012 but later subsided because unconventional production has simply not panned out in this area that has had decent conventional production.

Encana is in the process of narrowing its position to include the Oklahoma portion of the play and the immediately adjacent area to the north on the Kansas side. But it appears that the company has terminated its exploration activity on the 310,000 net acres it has under lease in the play’s northern extension and will focus its assessment effort on the remaining 82,000 acres in Osage County, Okla., and the surrounding area.

Earlier, in 2013, Chesapeake Operating Inc. sold 50% interest in some of its oil and gas properties in the play to Sinopec for $1.02 billion cash, a valuation that fell short of some expectations. The Oklahoma City-based operator sold its properties due to a long period of low gas prices coupled with a significant debt load. Chesapeake’s oil and gas production from the assets averaged 34,000 barrels oil equivalent in the fourth quarter of 2013, and proved reserves are estimated at 140 million barrels oil equivalent (45% oil, 46% gas with the remainder in NGLs).

Sinopec’s purchase includes about 850,000 acres at about $2,400 per acre, below the $3,400 per acre figure assigned by analysts. Chesapeake has about 2.1 million acres in the Mississippi Lime formation.

On the positive side, American Energy Partners, led by former Chesapeake CEO Aubrey McClendon, raised about $500 million in equity commitments and secured $180 million from banks to pursue exploration in the Mississippi Lime play. The company acquired about 120,000 net acres of leasehold and approximately 6,000 net barrels of oil equivalent per day of production in the play and will have about 200,000 net acres over time. American Energy acquired the assets from Calyx Energy LLC, Calyx Energy II LLC, Liberty Energy LLC and Truevine Operating LLC.

Meanwhile, Atlas Energy LP plans to dedicate much of its drilling activity in the Mississippi Lime with its 2014 Series 34 program. The company plans to complete 14 wells in 2014 and will have two rigs running on their acreage through the remainder of the year.

Midstates Petroleum Corp.?which in 2013 had five active rigs in the Anadarko Basin part of the play, spud 15 gross wells and recompleted two existing wells?is beginning to see its work in the play pay off. The company estimates its full-year 2014 production to range from 33,000 to 36,000 bbl of oil equivalent per day, with 55-60% from its Mississippian Lime program, 25-30% from its Anadarko program, and the rest from its Gulf Coast assets.

According to IHS Inc., SandRidge Energy is staying put for the time being. The company expects to reinvest over time in its midcontinent Mississippian drilling projects. The company has earmarked $1.1 billion of its 2014 capex budget for drilling and completion activity in this play, which is now expected to encompass 460 gross (331 net) wells and 50 gross (37 net) saltwater disposal wells. Another $300 million is allocated for saltwater disposal pipeline infrastructure, land and seismic, workovers, non-operated wells and midstream electrical.